Equity Strategy - India: From macro shocks to policy response

研报英文原文证据摘录

Equity Strategy - India: From macro shocks to policy response

Rep India’s reform cycle: broadening from

demand support to structural resilience

Exhibit 1: India’s reform cycle has broadened across demand, energy security and capital markets

18 reforms over the past 24 months span tax, labor, energy, manufacturing, banking and foreign capital access; investor impact depends on execution.

Name of the Reforms Key Measures Implication

Tax & labor reforms to accelerate demand, formalization

GST tax slabs rationalized with most goods and services

GST reforms: September 2025 Improve affordability and stimulate demand

taxed in 5% and 18% slabs vs 5%, 18%, 28% earlier

Raised the no-tax threshold to Rs1.2mn and the effective

Direct tax reforms: April 2026 Support consumption, savings and investment; improve compliance

no-tax threshold for salaried taxpayers to Rs1.275mn.

Promote formal employment, improve worker protection, expand access

Labor Reforms: November 2025 India replaced 29 central labor laws with four labour codes to formal finance, support insurance and healthcare penetration,

improve manufacturing competitiveness and scale.

Building energy security and economic resilience

Modernized the exploration and production framework

Improve investor certainty, ease operational bottlenecks, revive

Energy Security – Oil & Gas production: March–July 2025 through broader hydrocarbon definitions, single petroleum

upstream investment and support domestic production growth.

leases and longer lease tenures.

VGF scheme for BESS, along with transmission-charge Support renewable integration, absorb intermittency, manage peak

Energy Security – Grid storage: June 2025–February 2026

waivers and a national storage framework. demand and avoid future grid bottlenecks.