NEW DELHI– India’s economic reforms in 2025 are laying the groundwork for the country’s stronger global position, with recent policy moves expected to benefit consumers, the middle class and businesses, economist Ved Jain said on Tuesday.
Jain, a former president of the Institute of Chartered Accountants of India, said allowing 100 percent foreign direct investment in the insurance sector would have a positive impact on both the economy and consumers.
He said experiences in developed economies show that higher foreign participation in insurance has increased competition and improved services rather than creating market distortions.
“With 100 percent foreign investment, competition between domestic and foreign insurers will naturally increase, leading to cheaper insurance products and better services for consumers,” Jain said.
Lower insurance costs would directly benefit households, he added, while reduced logistics and operating costs would improve efficiency and competitiveness across the sector.
Jain also emphasized the need to reform outdated colonial-era laws, noting that many legal provisions were created before 1947 to serve British administrative interests.
More than 75 years after independence, he said, several such laws remain in force and continue to burden citizens with minor offenses and complex procedures.
“As a democratic and welfare-oriented nation, our laws should reflect the expectations of today’s society and support citizens rather than impose unnecessary hurdles,” Jain said.
He argued that modern governance requires moving away from obsolete rules and aligning the legal framework with India’s democratic values and social welfare goals.
Commenting on recent economic measures, Jain pointed to three policy steps that he said would provide meaningful relief to the middle class and businesses.
He said raising the tax-free income threshold to Rs 12 lakh and reducing tax rates on income between Rs 12 lakh and Rs 24 lakh would increase disposable income for a large segment of taxpayers.
Jain also highlighted proposed changes in goods and services tax rates, particularly reductions from 12 percent and 18 percent to 5 percent on selected items, saying the move would lower prices and strengthen consumer purchasing power. (Source: IANS)
