The union government will carry forward the economic reforms initiated in 2025 into the new year, Prime Minister Narendra Modi indicated during a recent interaction with senior economists from across the country. Addressing the gathering, Modi said the government was preparing for wide-ranging reforms across sectors to sustain long-term economic growth. The discussions also focused on priority areas that should shape the forthcoming Union Budget, with economists offering inputs on policies needed to strengthen India’s economic fundamentals.
The Prime Minister underlined that the budget would be framed with a long-term vision of transforming India into a developed nation by the centenary of Independence in 2047. He noted that India has increasingly drawn global attention and confidence, asserting that the world today views the country with optimism and trust. According to PM Modi, 2025 has marked a year of significant transformation across multiple domains, generating fresh momentum for growth. These changes, he said, would serve as a foundation for building a developed and self-reliant India, a message he later reiterated on social media.
Economists present at the meeting called for targeted tax incentives to encourage household savings and improve financial resilience among ordinary citizens. They also stressed the need for strong policy backing in emerging areas such as data centres, artificial intelligence, and robotics to deepen India’s digital economy. To boost export earnings, the experts urged the government to take decisive steps to expand India’s services exports, particularly in high-value segments.
Against the backdrop of intensifying global trade disputes, the economists recommended placing greater emphasis on sectors with strong income and employment potential, including digital services, financial services, and tourism.
They further suggested better utilisation of existing free trade agreements to enhance market access for Indian firms. Concerns were also raised about the strategic risks posed by the weaponisation of rare earth elements by certain countries, with a call for India to accelerate efforts towards self-sufficiency in critical minerals.
Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget in Parliament on February 1. The upcoming budget is expected to announce measures to strengthen India’s export ecosystem in light of prevailing global economic headwinds and the imposition of additional tariffs by countries including the United States. Reports suggest that the export sector may receive enhanced financial support. Markets are also anticipating policy signals aimed at preventing a slowdown in foreign investment inflows and reinforcing investor confidence amid uncertain international conditions.
