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Key Points

The government has introduced sweeping reforms to improve the business climate and attract investments. Key sectors like construction and finance are driving India’s 6.5% GDP growth. FDI policies have been liberalized across defence, aviation, and pharmaceuticals to boost investor confidence. The fiscal deficit target for FY26 is set at 4.4% to ensure sustainable economic expansion.

Key Points: Centre Unveils Business Reforms to Boost GDP Growth and Investments

  • Reforms under Ease of Doing Business boost investor confidence
  • Construction and financial sectors drive 6.5% GDP growth
  • FDI policy liberalized across defence, aviation, and pharma
  • Fiscal deficit target set at 4.4% for FY26
2 min read

Wide-ranging reforms in place to improve business environment, attract investments: Centre

Government introduces wide-ranging reforms to enhance ease of doing business, attract FDI, and sustain 6.3-6.8% GDP growth in FY26.

"An investor-friendly framework is in place, with most sectors open to 100% FDI under the automatic route. – Pankaj Chaudhary"

New Delhi, Aug 4

The government has consistently undertaken wide-ranging reforms to improve the business environment, attract investments, and promote economic growth, the Parliament was informed on Monday, as the country is projected to clock GDP growth in the range of 6.3 per cent to 6.8 per cent in the current fiscal (FY26).

These measures include initiatives undertaken under the Ease of Doing Business programme, comprising the Business Reform Action Plan (BRAP), Business-Ready assessment, Jan Vishwas, and Reducing Compliance Burden on Businesses and Citizens, said Minister of State for Finance, Pankaj Chaudhary, in a written reply to a question in the Lok Sabha.

As per the latest available Provisional Estimates of Gross Domestic Product (GDP) released by the Ministry of Statistics and Programme Implementation, GDP at constant prices is estimated to have grown by 6.5 per cent in 2024-25.

This growth was primarily driven by robust performance in the construction sector (9.4 per cent), public administration, defence and other services (8.9 per cent) and financial, real estate, and professional services (7.2 per cent).

Looking ahead, the Economic Survey 2024-25 has projected GDP growth for the year 2025–26 in the range of 6.3 per cent to 6.8 per cent.

The government has undertaken a series of initiatives to attract greater domestic and foreign investment, focusing on robust capital expenditure, infrastructure development, financial sector reforms, and enhancing the ease of doing business.

The Union Budget 2025–26 identifies investment as one of the four key engines of growth. Complementary measures include credit guarantee schemes, the Production-Linked Incentive (PLI) Scheme, and the creation of a strong skilling ecosystem.

In addition, the government has implemented wide-ranging and transformative Foreign Direct Investment (FDI) reforms across sectors such as defence, civil aviation, pharmaceuticals, single-brand retail, contract manufacturing, digital media, insurance, and space.

To maintain India’s appeal as an investment destination, the FDI policy is reviewed regularly and updated as needed. An investor-friendly framework is in place, with most sectors — except a few of strategic importance — open to 100 per cent FDI under the automatic route, requiring no prior government approval, said the minister.

The Union Budget 2025-26 has set the fiscal deficit target for 2025–26 at 4.4 per cent of GDP.

- IANS

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Reader Comments

P
Priya S
While the GDP numbers look promising, I wish they would address the ground reality for MSMEs. Getting loans is still a nightmare for small entrepreneurs like me in Tier 2 cities. The policies sound good on paper but implementation needs work.
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Rohit P
Construction sector growing at 9.4% is impressive! But hope this growth translates to better wages for laborers. My brother works at a Noida site and says working conditions haven't improved much despite the boom.
S
Sarah B
As an expat working in Bengaluru's tech sector, I've seen India's FDI policies attract many global companies. The automatic route for most sectors is a game-changer! Though infrastructure bottlenecks remain a challenge for operations.
K
Karthik V
PLI scheme is working wonders for electronics manufacturing! Our Chennai plant has expanded thanks to these incentives. But government should also focus on reducing import duties for raw materials - that's our biggest pain point currently.
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Nisha Z
Fiscal deficit at 4.4% seems ambitious with all these spending plans. Hope this doesn't lead to higher taxes later. Middle class is already burdened with rising costs of everything from petrol to groceries 😓

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