BUSINESS
Budget’s most far-reaching change is in tariff rationalization
Inverted customs duty structures have been one of the biggest impediments to competitiveness of Indian exporters. Imposed mostly ad-hoc, in response to specific demands for import protection, the duty inversions have adversely affected prospects. The Budget might have done for Indian exports what trade policy hasn’t been able to
BUDGET
Budget 2025 set to transform the insurance sector for growth
The Union Budget 2025-26 introduces significant reforms for India's insurance sector, including raising FDI limits, enhancing digital infrastructure, and expanding coverage for gig workers. These initiatives aim to drive innovation, growth, and greater accessibility, particularly in rural markets
BUDGET
India's strategic push for cleantech manufacturing and renewable energy growth
Budget 2025 outlines efforts to boost manufacturing, focusing on renewable energy (RE) and cleantech. The National Manufacturing Mission aims to enhance domestic production across key sectors, reducing import dependency, and fostering innovation, technology, and skills for future growth.
WORLD
Hamilton to Trump: America’s repeated dalliances with tariffs
Tariffs have often been viewed and used as tools to build domestic industrial strength. In displaying faith in them, Donald Trump is not an outlier in American political history. The question is whether tariffs are an unstoppable force or just another page in the economics textbooks. The next four years will answer that question for the U.S. and for the world at large.
BUDGET
A budget that scores on four of five essential criteria
Budget does well on transparency, diluting intrusiveness in taxation, fiscal prudence and laying down a roadmap for more consolidation. It could have been more ambitious in its goals but the global uncertainty triggered by US policy could have nudged the government to err on the side of caution
BUDGET
India’s Middle Class Boom: How PM Modi’s budget is reshaping economic prosperity
At a single stroke, 70 million taxpayers have been wholly unburdened by the budget and the middle class has seen a substantial increase in its post-tax income. This will spur a consumption boom, pushing India’s GDP to an 8% range.
BUSINESS
Union Budget 2025 boosts consumption in urban and rural India
The Union Budget 2025 focuses on stimulating private consumption in both urban and rural India. By revising tax slabs, increasing rural support, and boosting agriculture and food processing industries, it aims to enhance growth, consumption, and farmer incomes
BUDGET
Tax-to-GDP Ratio: Strategic economic blueprint to tax proposals
Tax proposals spanning rate changes, process simplification and the imminent introduction of a new income tax bill to overhaul the system set the stage for creating a robust fiscal base.
BUDGET
Budget 2025 strengthens IFSC’s role as a global financial hub
Budget 2025 introduces key measures for GIFT City IFSC, enhancing tax incentives, regulatory clarity, and competitiveness. These changes, including simplified rules for fund managers and exemptions for non-residents, aim to attract global investments and position India as a leading financial centre
BUDGET
A budget to enable Viksit Bharat
Budget 2025-26 is a blueprint for the presence of India in the global high table in 2047. The direction of the Government is right
BUSINESS
The Reading List: January 31, 2025
Our research and opinion teams have curated a selection of articles and social media gems from the world of economy, business and finance for your weekend read.
BUSINESS
Aligning incentives of SMEs and PEs can boost private industrial investment
A dedicated policy of allocating capital through NIIF or similar institutions to private equity funds focused on key manufacturing sectors in India, with an explicit mandate of funding primary capex and M&A in small and medium enterprises, may be the solution.
BUSINESS
Budget Snapshot: Interest burden on revenue uncomfortable, but FY26 could see relief
The only antidote to high interest payment is lower market borrowing
BUSINESS
Harnessing private investment to fuel mega infrastructure projects
India’s infrastructure development relies on increasing private sector participation. The government must address challenges such as regulatory hurdles, land acquisition, and financing to enhance private investment in key sectors like ports, railways, and roads.
BUSINESS
Strategic tax reforms in Budget 2025 for sustainable economic growth
The Union Budget 2025 is expected to focus on tax reforms, fiscal discipline, and growth stimulation. Key measures include tax simplification, incentives for GCCs and green energy, and improved dispute resolution, aiming to foster innovation, investment, and economic sustainability
BUSINESS
Digital payments system needs to adapt to rural India’s realities
Digital payment mechanisms offer significant potential to empower rural and semi-urban borrowers. However, their success depends on addressing underlying infrastructural and educational challenges. Achieving financial inclusion in India’s heartland will require an approach that blends the innovation of digital systems with the reliability of traditional cash methods.
BUDGET
Budget 2025 could give India's electronics manufacturing industry a boost
India’s electronics manufacturing sector holds vast growth potential. Budget 2025 can boost this by strengthening PLI schemes, adopting Industry 4.0, enhancing domestic supply chains, upskilling workers, and improving export competitiveness, positioning India as a global electronics manufacturing hub.
BUSINESS
Will Budget 2025 emerge as the growth Chyawanprash?
India’s confluence of tight fiscal policy through disciplined fiscal consolidation, tight monetary and stable exchange rate policy through the tolerance of higher interest rates, and tight macroprudential policy to curb frothy retail credit – have exacted a growth cost. As that cost is becoming more evident in weaker growth readings policymakers are starting to unwind
BUDGET
India Inc awaits key reforms and growth boosters in Budget 2025
India Inc expects the upcoming budget to focus on tax reforms, job creation, simplifying compliance, and promoting sustainability. Key expectations include revising TDS provisions, extending CSR funds for environmental projects, and rationalising personal tax deductions to boost economic growth
BUDGET
Budgetary incentives in research and development help boost innovation
The upcoming budget aims to strengthen India’s R&D ecosystem through strategic funding, tax incentives, and public-private partnerships. These measures are designed to promote technological advancements, foster innovation, and position India as a global leader in research and development
BUSINESS
Budget likely to enhance public investment which will catalyse M&A
The country might witness a resurgence in the M&A activities after a dull few quarters, as there are indications that the government is most likely going to increase capital expenditure outlay in the next fiscal year as a way to push economic growth
BUSINESS
Budget can be a watershed moment for customs reform
If the government strikes the right balance between domestic industry needs and international trade obligations, Budget 2025 could lay the foundation for a more efficient, self-reliant, and globally competitive India.
BUSINESS
Monetary reflation needed to balance fiscal consolidation
The economy will benefit from liquidity support by way of monetary expansion, considering that India’s money supply which grew at 17 per cent a few years ago, is now at around 10 per cent. Monetary reflation could manifest via a combination of rate cuts and/or liquidity injection
BUSINESS
Budget must strengthen tax dispute resolution schemes to instil confidence
The logjam of tax disputes is a critical issue that the Budget needs to address, particularly at the Commissioner of Income Tax (Appeals) level with over half a million cases pending and Rs 14.2 lakh crore at stake at this level itself. Also, there are more than 350 cases pending resolution at the Board of Advance ruling and over 800 pending Advance pricing agreement cases
