How is the DEA Enhancing India's Economic Foundations for Future Growth?
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Synopsis
The DEA has laid a robust foundation for India's economic future, enhancing policies in diverse sectors. With initiatives like the launch of 'Chhoti SIP' and the introduction of a new UPI address structure, the government is working towards greater financial inclusion and stability. Discover how these changes will shape India's growth trajectory.
Key Takeaways
- DEA enhances India's economic stability through strategic policies.
- Introduction of “Chhoti SIP” for first-time investors.
- New UPI address structure mandated for better security.
- Focus on financial literacy through grassroots training.
- Enhanced protection for critical financial systems.
New Delhi, Jan 17 (NationPress) The Department of Economic Affairs (DEA) has significantly reinforced India's economic framework through various policies in macroeconomics, capital markets, infrastructure, digital finance, and investor protection. This strategic approach is positioning India for a future marked by sustained growth, as reported by the government.
For instance, the DEA has played a pivotal role in guiding India's economic management, fiscal strategies, and the coordination of the financial sector while implementing necessary reforms to bolster growth, stability, investment, and global engagement looking forward to 2025.
A statement from the Ministry of Finance indicated that the 16th Finance Commission presented its report for the award period spanning from 2026-27 to 2030-31 to the President of India on November 17.
In 2025, a new category labeled “Large Ships” was introduced under the transport and logistics section of the Harmonised Master List.
Additionally, funds acquired through Sovereign Green Bonds reached ₹21,697.40 crore in FY 2024–25, with allocations directed towards eligible green projects across various ministries.
According to the statement, capital expenditure monitoring by the DEA enabled infrastructure ministries to achieve an expenditure of ₹10.46 lakh crore during FY 2024–25, surpassing revised estimates, while IEBR expenditure also exceeded targets.
Numerous measures were enacted to enhance market integrity and fortify the regulatory framework.
For example, the public issue framework for SMEs has been tightened with specific eligibility criteria, caps on offer-for-sale and General Corporate Purpose funds, along with restrictions on using IPO proceeds for loan repayment. Improvements were made in trading and risk monitoring within equity derivatives, and measures to mitigate expiry-day volatility were introduced.
To reduce the risk of securities misuse by stock brokers, securities for payout are now credited directly to client demat accounts by Clearing Corporations. A framework for safer retail investor participation in algorithmic trading has also been established.
Moreover, to deepen and diversify India’s securities markets, focused initiatives were undertaken to enhance efficiency and participation.
Financial inclusion efforts included the launch of “Chhoti SIP” — a SIP of ₹250, aimed at encouraging first-time investors.
Digital public infrastructure has been leveraged for the retrieval and storage of mutual fund and demat statements through DigiLocker.
To curb the accumulation of unclaimed assets, nomination norms for demat accounts and mutual fund folios have been revised.
A new UPI address structure for all SEBI registered intermediaries who collect funds from investors has been mandated effective October 01, 2025.
To empower investors, a new tool called “SEBI Check” has been introduced, enabling investors to verify the authenticity of UPI IDs and confirm bank details such as account numbers and IFSC codes of registered intermediaries.
SEBI, in collaboration with the Ministry of Panchayati Raj (MoPR), has initiated a nationwide training program for Block Level Panchayat representatives to boost financial literacy and investor education at the grassroots level, equipping representatives with knowledge to inform rural communities across India.
“Over 100 critical financial systems across banking, payments, securities, and insurance have been designated as Protected Systems under the Information Technology Act, 2000,” the statement noted.
These systems now function under enhanced security measures, continuous monitoring, and periodic audits, thereby strengthening the operational resilience of platforms such as RTGS, NEFT, UPI, and securities depositories.
India continues to be one of the few nations worldwide to conduct a large-scale live pilot for Central Bank Digital Currency.
The retail Digital Rupee pilot has expanded nationwide, reaching 82 lakh users and 11 lakh merchants as of November 2025.
The CBDC is now interoperable with UPI, allowing users to scan any UPI QR code across the nation.
Point of View
We recognize the DEA's recent initiatives as crucial steps towards strengthening India's economic framework. The emphasis on financial literacy and investor protection is commendable and reflects a commitment to inclusive growth. The strategies outlined aim to not only improve market integrity but also empower individuals, a necessary approach in today's dynamic economic environment.
NationPress
17/01/2026
Frequently Asked Questions
What is the DEA's role in India's economy?
The DEA strengthens India's economic fundamentals through policies in various sectors, ensuring sustained future growth.
How does the DEA support financial inclusion?
The DEA has introduced initiatives like 'Chhoti SIP' to encourage first-time investors and improve access to financial services.
What are Sovereign Green Bonds?
Sovereign Green Bonds are funds raised by the government to finance eligible green projects, aiming to promote sustainability.
How has the UPI system changed?
A new UPI address structure has been mandated for SEBI registered intermediaries, enhancing security and user experience.
What is SEBI Check?
SEBI Check is a new tool for investors to verify the authenticity of UPI IDs and confirm bank details of registered intermediaries.
