New Delhi, Jan 1 The Finance Ministry's Department of Economic Affairs (DEA), spearheaded successful initiatives to enhance India's economic resilience and global integration in 2024, according to a year-ender review released on Wednesday.
Notably, the Union Cabinet approved the new Framework on Currency Swap Arrangements for SAARC Countries (2024-27), fostering financial cooperation and regional integration.
This framework introduced an INR Swap Window worth Rs 25,000 crore, supplementing the USD/Euro Swap Window, and aimed to promote 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.
Further solidifying India's international partnerships, the signing and enforcement of the India-UAE Bilateral Investment Treaty (BIT) marked a new chapter in fostering investor confidence and economic collaboration, while the India-Uzbekistan BIT emphasised investor protection and dispute resolution mechanisms.
Additionally, the constitution of the Joint Task Force on Investment between India and Qatar facilitated deeper cooperation, and India's proactive role in Sri Lanka’s economic stabilisation highlighted its leadership in addressing regional financial challenges. These initiatives reflect India’s dedication to fostering global economic partnerships and supporting sustainable development.
The DEA introduced many Ease of Doing Business (EoDB) reforms to enhance infrastructure and simplify investment regulations. The launch of the National Infrastructure Readiness Index (NIRI) promoted cooperative and competitive federalism by evaluating and encouraging infrastructure development across states and central ministries.
Simultaneously, amendments 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 boosting financial inclusion nationwide.
India's extensive work as co-chair paved the way for approval of third disbursement from IMF, ensuring Sri Lanka’s return to a sustainable economic recovery.
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.
Launched in September 2024, National Infrastructure Readiness Index (NIRI) is developed to further the ideas of cooperative and competitive federalism. This was aimed at encouraging competition among states/UTs and identified central infrastructure Ministries/Departments to improve their respective performance and further enhance the infra-development climate.
This helped to pave way for infrastructure development and its enabling environment.
The Department of Economic Affairs, Ministry of Finance, also took several initiatives to simplify rules related to foreign and cross-border investments and anchor reforms for pro-investment climate.
Amendment in Rule 19(3) and insertion of new Rule 19(4) was introduced to facilitate ease of doing in overseas investment/Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2024, were introduced to enable cross-border share swaps. This facilitates the global expansion of Indian companies through mergers, acquisitions, and other strategic initiatives.
Besides, it enables Foreign Direct Investment (FDI) in White Label ATMs to boost financial inclusion nationwide.
Foreign Exchange (Compounding Proceedings) Rules were also introduced to streamline the processing of compounding applications, introduction of digital payment options for application fees and compounding amounts
Securities Contracts (Regulation) Amendment Rules, 2024 were introduced in August, 2024, for facilitating direct listing of securities by public Indian companies on International Exchanges of GIFT IFSC.
This facilitates easier access to global capital for Indian start-ups and companies in sunrise and technology sectors.
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