Sovrenn Times: Macroeconomy Update | 25 Aug 2025
CII Unveils 250-Point Reform Roadmap for Viksit Bharat
The Confederation of Indian Industry (CII) has released a blueprint titled “Policies for a Competitive India”, outlining 250+ actionable recommendations across 14 reform areas to fast-track India’s economic transformation. The roadmap calls for a simplified GST structure with expanded coverage to petroleum and real estate, rationalised tariffs, and a national employment & gig economy policy. It proposes privatisation of non-strategic PSEs, creation of a sovereign wealth fund, and second-generation IBC reforms alongside time-bound approvals and single-window clearances. Energy reforms include competitive tariffs, stronger transmission, nuclear participation, and a green hydrogen roadmap. CII also pushes for labour code streamlining, minimum wage frameworks, MSME compliance ease, and e-commerce export strategies, while integrating climate adaptation with digitised climate data and sustainability-linked procurement. With India on track to become the world’s third-largest economy, CII leaders argue these reforms will bolster growth, jobs, resilience, and global competitiveness under the government’s Viksit Bharat vision.
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India’s Outbound Investments Surge 68% to $41.6B in FY25, ESG & GIFT City Drive Expansion
India’s outbound investments surged 67.7% YoY to $41.6B in FY25, up from $24.8B in FY24, with transactions rising 15%, per EY’s India Abroad 2025 report. Growth is being driven by diversification, ESG integration, and tech-led expansion, spanning IT, energy, pharma, auto, and hospitality sectors. Traditional hubs like Singapore, Netherlands, and Mauritius are giving way to UAE, Luxembourg, and Switzerland, offering tax efficiency, regulatory clarity, and alignment with India’s green and digital priorities. The UAE’s CEPA-backed opportunities, Luxembourg’s green finance ecosystem, and Switzerland’s IP-friendly infrastructure are emerging as new gateways. Meanwhile, GIFT City outbound flows jumped 100% in two years (from $0.04B in FY23 to $0.81B in FY25), positioning it as a cost-effective hub with tax and regulatory advantages. With global tax shifts and sustainability norms tightening, Indian firms are embedding carbon pricing, supply chain due diligence, and green finance into their overseas strategies, marking a decisive shift in outward capital flows.
Govt Plans ₹25,000 Cr Export Support Mission to Counter 50% Trump Tariffs
The government is weighing a ₹25,000 crore Export Promotion Mission (FY25–31) to shield Indian exporters from global trade shocks, including the new 50% US tariffs on Indian goods (effective Aug 27, up from 25%). The Commerce Ministry’s proposal—sent to the Finance Ministry’s EFC—focuses on affordable credit, trade finance, and MSME support. The Mission has two sub-schemes: Niryat Protsahan (₹10,000+ cr) for interest equalisation (₹5,000+ cr), alternative financing tools, and e-commerce exporter credit cards, and Niryat Disha (₹14,500+ cr) for quality compliance (₹4,000 cr), overseas market development (₹4,000+ cr), branding, logistics, and capacity building. Anchored by the Commerce Ministry with MSME, Finance, Exim Bank, ECGC, CGTMSE, and states, the plan targets sectors like textiles, chemicals, leather, and footwear, most exposed to Trump tariffs. India’s exports rose 7.3% YoY to $37.24B in July, lifting FY26 (Apr–Jul) exports to $149.2B (+3.1%), though the trade deficit widened to an 8-month high of $27.35B.
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MP CM Mohan Yadav Pitches Self-Reliance, ₹66K Cr Exports & 15% Annual Budget Growth
MP CM Mohan Yadav stressed self-reliance, noting that only UP, Maharashtra, and MPare funding growth without loans. The state’s fiscal deficit narrowed to 4.11% in FY25(from 5.44% in FY21), while GSDP rose 6.05% YoY to ₹7.1 lakh crore. Exports hit ₹66,218 crore in FY25, up 1.5% YoY, supported by strong mineral, cement, iron, and steel output. MP is driving health infra via a PPP medical college model (25 acres for ₹1, reclaimed in 10 years), while industry incentives include direct approvals for projects above ₹500 crore, electricity rebates, and cut in permissions from 29 to 10. Employment-linked subsidies of ₹5,000 per worker for 10 years helped lift labour force participation to 72.7% in FY24 (vs 67.8% in FY23). Tourism is booming with 200+ new hotels planned, while the state budget is targeted to expand 15–16% annually, doubling in five years to align with India’s Viksit Bharat 2047 vision.
Gadkari Targets Sub-9% Logistics Cost & 22 Lakh Cr Auto Industry to Drive $5T Economy
At the ET World Leaders Forum, Road Transport Minister Nitin Gadkari said India must build world-class infrastructure in water, power, transport, and communication to achieve its $5T economy target. India’s logistics cost has already dropped from 16% to 10% of GDP due to better highways, with a target of 9% by Dec 2025 (vs 8% in China, 12% in US/EU). The ministry is investing in green highways, ropeways, tunnels, and mass rapid transport, while pilots for flash-charging e-buses with 30% lower fares than dieselbegin in Nagpur. With fossil fuel imports at ₹22 lakh crore, India is pushing hydrogen, biofuels, and flex engines to become an energy exporter. The ₹22 lakh cr auto industry(3rd largest globally) is projected to become No. 1 in five years, boosting jobs, revenues, and exports. On sustainability, roads now use 80 lakh tonnes of municipal waste, bamboo crash barriers, and eco-tech, though challenges remain with 5 lakh road accidents and 1.8 lakh deaths annually (66% youth).