Finance Ministry Boosts India's Global Integration and Business Ease in 2024: Government Report

New Delhi, Jan 1 (NationPress) The Finance Ministry's Department of Economic Affairs (DEA) led impactful initiatives to bolster India's economic resilience and global integration in 2024, as highlighted in a year-end review released on Wednesday.

Notably, the Union Cabinet endorsed the new Framework on Currency Swap Arrangements for SAARC Countries (2024-27), which promotes financial cooperation and regional unity.

This framework introduced an INR Swap Window valued at ₹25,000 crore, complementing the USD/Euro Swap Window, aimed at advancing the internationalisation of the Indian Rupee.

Such measures emphasize India’s commitment to strengthening connections with SAARC nations and providing financial stability in the region.

Additionally, the signing and implementation of the India-UAE Bilateral Investment Treaty (BIT) opened a new chapter in promoting investor confidence and economic collaboration, while the India-Uzbekistan BIT focused on investor protection and dispute resolution mechanisms.

The establishment of the Joint Task Force on Investment between India and Qatar encouraged deeper cooperation, and India's proactive involvement in Sri Lanka’s economic stabilization showcased its leadership in tackling regional financial challenges. These initiatives reflect India’s commitment to fostering global economic partnerships and supporting sustainable development.

The DEA introduced various Ease of Doing Business (EoDB) reforms to improve infrastructure and simplify investment regulations. The launch of the National Infrastructure Readiness Index (NIRI) encouraged cooperative and competitive federalism by assessing and promoting infrastructure development across states and central ministries.

Concurrently, revisions to foreign investment rules, including the Overseas Direct Investment Regulation and the Foreign Exchange Management Rules, streamlined processes and facilitated cross-border investments. These initiatives collectively enhanced India's investment climate, enabling global expansion for Indian companies and bolstering financial inclusion nationwide.

India's extensive efforts as co-chair paved the way for the third disbursement approval from the IMF, ensuring Sri Lanka’s path to a sustainable economic recovery.

India has reaffirmed its commitment to the stabilization, recovery, and growth of the Sri Lankan economy by taking a proactive stance towards facilitating debt resolution.

Launched in September 2024, the National Infrastructure Readiness Index (NIRI) was developed to further the concepts of cooperative and competitive federalism. This initiative aimed to foster competition among states/UTs and identify central infrastructure ministries/departments to enhance their performance and further improve the infrastructure development environment.

This initiative has paved the way for infrastructure development and a conducive environment.

The Department of Economic Affairs, Ministry of Finance, initiated several steps to simplify rules regarding foreign and cross-border investments and anchor reforms for a pro-investment climate.

Amendments to Rule 19(3) and the introduction of a new Rule 19(4) were established to facilitate ease of engaging in overseas investment/Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2024, enabling cross-border share swaps. This supports the global expansion of Indian companies through mergers, acquisitions, and other strategic initiatives.

Additionally, it facilitates Foreign Direct Investment (FDI) in White Label ATMs to enhance financial inclusion nationally.

The Foreign Exchange (Compounding Proceedings) Rules were also introduced to streamline the processing of compounding applications, along with the introduction of digital payment options for application fees and compounding amounts.

The Securities Contracts (Regulation) Amendment Rules, 2024 were introduced in August 2024 to facilitate the direct listing of securities by public Indian companies on international exchanges of GIFT IFSC, which simplifies access to global capital for Indian start-ups and companies in emerging and technology sectors.