The Finance Ministry’s Department of Economic Affairs (DEA) unveiled key milestones from 2024, highlighting India’s strides in economic resilience, regional partnerships, and investment-friendly reforms. The initiatives reflect the government’s focus on global integration and infrastructure development.
Strengthening Regional Ties: Currency Swap Framework for SAARC
One of the notable achievements in 2024 was the Union Cabinet’s approval of the new Framework on Currency Swap Arrangements for SAARC Countries (2024-27). The framework introduced an INR Swap Window worth ₹25,000 crore to supplement the existing USD/Euro Swap Window, promoting financial stability and furthering the internationalisation of the Indian Rupee.
“These measures underscore India’s commitment to strengthening ties with SAARC nations and providing financial stability in the region,” the DEA stated.
Boosting Global Partnerships: Bilateral Treaties and Regional Leadership
The DEA celebrated the signing of the India-UAE Bilateral Investment Treaty (BIT), which aims to enhance investor confidence and foster economic collaboration. Similarly, the India-Uzbekistan BIT emphasised investor protection and dispute resolution, further consolidating India’s global economic partnerships.
Other initiatives included the establishment of a Joint Task Force on Investment between India and Qatar and India’s pivotal role in supporting Sri Lanka’s economic stabilisation efforts. “India has retained their commitment to the stabilisation, recovery, and growth of the Sri Lankan economy by adopting a proactive approach towards facilitating the debt resolution,” the report noted.
Ease of Doing Business: Infrastructure and Investment Reforms
The DEA introduced significant reforms to simplify investment regulations and improve infrastructure readiness. The launch of the National Infrastructure Readiness Index (NIRI) in September 2024 was a major step toward promoting competitive and cooperative federalism. NIRI evaluated infrastructure development across states and central ministries, encouraging improvement in performance.
Amendments to foreign investment rules, such as the Overseas Direct Investment Regulation and Foreign Exchange Management (Non-Debt Instruments) Rules, enabled cross-border share swaps, facilitating global expansion for Indian companies.
Enhancing Financial Inclusion and Global Capital Access
To further financial inclusion, the government permitted Foreign Direct Investment (FDI) in White Label ATMs, ensuring easier access to financial services nationwide. The DEA also introduced the Securities Contracts (Regulation) Amendment Rules, 2024, enabling Indian companies to directly list securities on international exchanges within GIFT IFSC. This reform is expected to provide startups and technology firms with easier access to global capital.
Digital Payments and Streamlined Rules
In another pro-investment measure, the government revised the Foreign Exchange (Compounding Proceedings) Rules to simplify compounding applications, introducing digital payment options for application fees and penalties.
Driving Regional Stability and Development
India’s leadership as co-chair in international economic discussions paved the way for the third disbursement of IMF funds to Sri Lanka, helping the island nation move toward sustainable economic recovery.
These comprehensive reforms and initiatives underscore India’s dedication to fostering global economic partnerships, supporting regional stability, and bolstering domestic infrastructure for long-term growth.
