DEA lays groundwork for long-term growth through financial reforms
New Delhi, Jan 17: In 2025, the Department of Economic Affairs (DEA) under the Ministry of Finance played a central role in guiding India’s macroeconomic management, fiscal strategy and financial sector coordination, while advancing reforms to support growth, stability and global engagement. Through wide-ranging initiatives spanning infrastructure financing, capital markets, digital finance and investor protection, the department focused on strengthening economic fundamentals and positioning India for sustained growth.
A key milestone during the year was the submission of the Sixteenth Finance Commission’s report for the award period 2026–27 to 2030–31. Prepared after extensive consultations with the Union and State governments, local bodies, experts and institutions, the report provides a comprehensive assessment of Centre–State finances and will be made public after being tabled in Parliament.
DEA also prioritised infrastructure investment. An expert committee recommended reforms to the Harmonised Master List of Infrastructure, including a new financing framework to attract private capital, while “Large Ships” were added as a recognised infrastructure sub-sector. Sovereign Green Bonds raised over Rs 21,600 crore in FY25, funding eligible green projects, and capital expenditure monitoring helped infrastructure ministries exceed spending targets.
Significant regulatory and market reforms were undertaken to enhance integrity and efficiency. Measures included tighter norms for SME public issues, strengthened risk monitoring in equity derivatives, direct credit of securities to client demat accounts, and safer participation for retail investors in algorithmic trading. Market development initiatives such as MF Lite for passive funds, faster debt listing timelines and streamlined post-trade processes improved participation and liquidity.
Investor empowerment remained a major focus. A unified investor mobile app, “Chhoti SIP” of Rs 250 for first-time investors, DigiLocker access to financial statements, revised nomination norms and new tools like “SEBI Check” strengthened transparency and protection. Nationwide financial literacy campaigns, including “SEBI vs SCAM,” targeted fraud prevention and grassroots awareness.
On the digital finance front, the Account Aggregator framework continued to scale, supported by in-principle approval for a self-regulatory organisation. UPI’s international footprint expanded to additional countries, while India’s Central Bank Digital Currency pilot grew to over 82 lakh users, with interoperability with UPI and pilots in offline and programmable payments.
DEA also ensured financial stability through active coordination under the Financial Stability and Development Council, strengthened cyber security mechanisms, and engagement with global institutions such as the IMF, World Bank and G20. Together, these measures underscored DEA’s role in reinforcing confidence in India’s financial system while laying foundations for long-term, inclusive economic growth.
