India's Quiet Moves Boost Economy, Smooth Path for US Trade Deal
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India's government has been quietly working to strengthen its economy and make it more attractive to foreign investors. As part of this effort, the country has implemented new labour codes, relaxed Quality Control Orders (QCOs), and introduced measures to boost exports in the Budget. These moves are seen as significant contributions to the broader negotiating environment that led to the India-US trade deal. The labour codes, which came into effect in November, consolidate 29 labour laws into four comprehensive codes. This modernisation of labour regulations is expected to create a future-ready workforce and stronger industries. The government views this as a key step towards making India's economy more competitive in the international market. The Budget, presented in February, also focused on increasing competitiveness. Finance Minister Nirmala Sitharaman introduced measures to boost exports, including duty-free imports of specified inputs for processing seafood products and leather goods. This is expected to increase exports of these products and support domestic manufacturing. Quality Control Orders (QCOs) were also relaxed to help the textile sector, which was hit hard by US tariffs. The ministry of chemicals and fertilizers rescinded 14 QCOs, including those for polyester fibre and yarn, in November 2025. This move is seen as a way to ensure quality, protect consumers, and support domestic manufacturing. While the details of the India-US trade deal are yet to be formally released, the timing of these changes suggests that they may have contributed to the broader negotiating environment. The US has long been concerned about India's labour standards, regulatory clarity, and workforce flexibility, which are all key factors in the competitiveness of the economy. The implementation of these measures is seen as a significant step towards making India a trusted global economic partner. With a dedicated focus on accelerating manufacturing growth, boosting exports, and positioning India as an attractive investment destination, the Budget reinforces the nation's role as a key player in the international market.
