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.
The swap window was created under this framework as an INR Swap Window amounting to Rs 25,000 crore to supplement the existing USD/Euro Swap Window to promote the internationalization of the Indian Rupee. These steps reflect India's commitment to improving relations with the SAARC countries and ensuring regional financial stability. India's international partnerships were further cemented through the signing and implementation of the India-UAE BIT, which delineated a new path toward investor confidence and economic cooperation, and the India-Uzbekistan BIT, which focused more on investment protection as well as measures to settle investor disputes.
Further, the joint task force on investment between India and Qatar enabled further cooperation, and the proactive role of India in the economic stabilization of Sri Lanka underscored its leadership in regional financial challenges. These initiatives reflect India's commitment to promoting global economic partnerships and sustainable development. The DEA introduced several Ease of Doing Business (EoDB) reforms to enhance infrastructure and simplify investment regulations.
The NIRI constituted cooperative and competitive federalism by assessing and encouraging infrastructure in states as well as in central ministries. Amelioration of overseas direct investment rules, the Overseas Direct Investment Regulation, and Foreign Exchange Management Rules facilitated smooth processes and enhanced the ease of cross-border investments.
These initiatives collectively enhanced India's investment climate, enhancing the capability of Indian companies to expand their global presence and enhance financial inclusion across India. 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. NIRI, which was launched in September 2024, is developed to further the ideas of cooperative and competitive federalism.
This was meant to create competition among states/UTs and highlighted central infrastructure Ministries/Departments to improve their respective performance and further enhance the infra-development climate. This facilitated infrastructure development and its enabling environment. The Department of Economic Affairs, Ministry of Finance, also undertook several initiatives to simplify rules relating to foreign and cross-border investments and anchor reforms for pro-investment climate.
Amendment in Rule 19(3) and adding a new Rule 19(4) has been made to provide ease of doing in overseas investment/Foreign Exchange Management (Non-debt Instruments) (Fourth Amendment) Rules, 2024, whereby cross-border share swap has been allowed, thereby facilitating the global expansion of Indian companies through mergers, acquisitions, and other strategic initiatives. In addition, it aims at increasing FDI in White Label ATMs, thus accelerating financial inclusion in the country.
Foreign Exchange (Compounding Proceedings) Rules were brought in 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 brought in August, 2024, to enable direct listing of securities by public Indian companies on International Exchanges of GIFT IFSC.
This will ease access to global capital for Indian start-ups and companies in sunrise and technology sectors.
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