The government is gearing up to place a series of landmark economic reforms before Parliament, aiming to draw more global investment and lift India’s growth trajectory.
At the heart of the agenda are three big moves: removing the cap on foreign investment in insurance, opening parts of the atomic energy sector to private players, and speeding up the resolution of bankruptcy cases. These proposals will be taken up in the session starting Monday.
The push comes at a moment of political strength and economic momentum. Fresh from a decisive victory in a key state election and buoyed by quarterly growth touching 8.2 percent, the Prime Minister is looking to position India firmly on the path to becoming a developed nation by 2047, with a long-term target of a 10 trillion dollar economy.
Policy experts say the timing works in the government’s favour. Rahul Verma of the Centre for Policy Research notes that back-to-back electoral wins since 2024 have strengthened the administration’s hand in pursuing ambitious reforms.
One of the major proposals seeks to allow 100 percent foreign investment in insurance companies, up from the current 74 percent. Another bill aims to broaden participation in atomic energy–based power generation. The updated insolvency law will focus on faster case closures and stronger protection for creditors.
Alongside these reforms, Finance Minister Nirmala Sitharaman tabled two additional bills: one introducing a health and national security levy on machines used in tobacco production, and another updating the compensation levy under GST. She has also sought approval for additional government spending of 1.32 trillion rupees.
The session is unfolding amid loud demands from the opposition, who want Parliament to take up concerns about alleged voter roll irregularities, rising friction with the US over tariffs and visa policies, and a recent intelligence lapse linked to a terror attack in New Delhi.
Ties with Washington have cooled after President Trump imposed a 50 percent tariff on Indian imports, citing issues such as Russian oil purchases. Critics argue these tensions, along with higher H-1B fees, are hurting India’s strategic position.
Despite the challenges, the government continues to push its reform story, hoping that tax changes, labour reforms, and a more open investment climate will help boost confidence and keep the economy on a strong growth path.
