The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, outlined the Government’s fiscal policy for the upcoming year, focusing on growth, infrastructure, social welfare, and agriculture. The Key highlights include an increased focus on green energy, digital transformation, and job creation, alongside efforts to reduce fiscal deficit. There are notable allocations for healthcare, education, and rural development, aimed at addressing socio-economic disparities.
Industry experts have generally welcomed the Union Budget 2025 for its forward-looking approach, keeping in mind the announcement of no income tax payable for income upto Rs. 12 Lakh and particularly the focus on green energy, technology, and infrastructure development.
“India’s 2025 Budget makes clear that the country will not succumb to inertia as the world’s economic environment evolves. In a contentious global environment, where protectionism and domestic deregulation will converge unpredictably, the Budget signals India’s intent to chart its own course, embracing regulatory reform while strengthening global competitiveness. This agenda is a transformative step forward, and if executed effectively, it can solidify India as a steady global business hub in the face of geopolitical uncertainty.” — Cyril Shroff, Managing Partner, Cyril Amarchand Mangaldas
INCOME TAX, CUSTOMS, CESS AND MORE
“The FM mentioned several welcome steps on the Customs front keeping in mind ease-of-business by way of rationalizing and simplifying the customs rate structure by reducing the number of tariff slabs, ensuring that no more than one cess gets levied on a particular imported item by exempting Social Welfare Cess on several items as well as introduction of steps like a 3-year time limit for finalization of provisional assessments and allowing importers to file voluntary post-import declarations to correct past short-payments without a fear of penalty.” — Sudipta Bhattacharjee, Partner, Khaitan & Co
“The speech of the Finance Minister unveiling Budget 2025-26 reveals a bold attempt of the government to revisit the direction of tax policy. A wide variety of measures relating to tax have been announced in the budget speech itself, which is rare but welcome. It is heartening to note the assurance that a new income tax law will be introduced for parliamentary review within the next few days particularly because its avowed purpose is to simplify tax law and is directed towards reducing disputes.The cherry on the cake is the significant expansion of the nil tax lab and thereby taking many in the middle class out of the tax net. This will clearly expand the scope of disposable income in the hands of the middle class, thereby boosting the consumption. This is not a populist measure given that the number of taxpayers who will now be excluded from the tax net are more in number but their per capita tax contribution is low. Hence, this measure will reduce the tax disputes on a personal Income tax front to wide cross-section of the citizens.” — Tarun Jain, Advocate, Supreme Court
“The tax policy outlined in the budget is clearly on a positive note and expected to lift the business morale and induce further investments.” — Tarun Jain, Advocate, Supreme Court
“Budget 2025 brings significant reforms to simplify taxes and provide relief to middle-class taxpayers. For businesses, the introduction of a streamlined transfer pricing scheme to determine arm’s length prices (ALP) for three-year block, expanded safe harbour rules, and extended benefits for start-ups are progressive moves to reduce compliance burdens and promote ease of doing business.” — Shaily Gupta, Partner, Khaitan & Co
“The announcement of a new income tax law is a welcome development. While previous attempts have faced challenges, we are hopeful that this version will simplify tax administration, reduce disputes, and create a more efficient and taxpayer-friendly system.”-Sameer Sah, Partner Khaitan & Co
“The government should urgently focus on simplifying taxation laws, which have become increasingly cumbersome to comply with. Additionally, collaboration with state governments is essential to reduce compliance burdens and promote deregulation at the local level, as local requirements often pose the greatest challenges for businesses. A practical approach to achieving this could be the digitisation of processes and the implementation of AI tools to expedite approvals—an approach already being adopted in other countries.” — Atul Pandey, Partner, Khaitan & Co
“Budget 2025 proposes a significant shift in the settlement scheme under the Customs Act, 1962 with the creation of an Interim Board for Settlement. The Board will consist of three senior officers, all of the rank of Chief Commissioner or above, nominated by the Central Board of Indirect Taxes and Customs. Notably, this Board will operate without judicial members, marking a departure from the previous structure of the Settlement Commission. This change signifies a shift of the settlement process from a judicial to an executive function. Effective from 1st April 2025, the Settlement Commission will cease to function, and all pending applications will be taken over by the Interim Board from the stage at which they stood, ensuring continuity and efficiency in the settlement process.” — V. Lakshmikumaran, Founder & Managing Partner, Lakshmikumaran & Sridharan Attorneys
“The benefit of claiming two house properties as self-occupied is now proposed to be made available without any restrictive conditions attached. The earlier conditions required that either the owner actually occupies or that he is prevented from so occupying on account of his employment or profession being elsewhere. The proposal is likely to provide much needed relief to taxpayers who have not been able to let out their house properties due to any reason whatsoever, and who were earlier liable to pay taxes despite not generating any income thereon.” — S. Sriram, Partner, Lakshmikumaran & Sridharan Attorneys
“The Government also aims at reducing litigations with a new facility allowing the assessee to disclose facts and discharge additional duty, if any as a measure to simplify the procedure for making additional duty. This is, of course, with a rider: there are no investigations and audits are initiated. This amendment will encourage importers to make voluntary disclosures, bring down the litigation costs and also help assessees availing specific schemes like AEO wherein the eligibility is dependent on Show Cause Notices alleging fraud. It is hoped that this facility also enables the assessee to get refund, if the additional disclosure results in such refund.” — Nupur Maheshwari, Executive Partner, Lakshmikumaran & Sridharan Attorneys
“The time limit for use of imported inputs is being increased from 6 months to 1 year under the Import of Goods at Concessional Rate of Duty rules, 2017. Time limit of 2 years with further extended to 1 year has been prescribed for finalisation of provisional assessments. These amendments will provide more certainty to the trade. It is hoped that this applies to past cases also.” — Nupur Maheshwari, Executive Partner, Lakshmikumaran & Sridharan Attorneys
ENERGY SECTOR
“To promote domestic manufacturing and employment generation critical steps like further exemptions on import of critical minerals like cobalt, basic customs duty exemptions for Lithium-Ion battery manufacture for mobile phones as well as EVs, extension of benefits for domestic MRO sector and continuation of benefits for ship-building and ship-breaking industries have been announced which should go a long way to boost these sectors.” — Sudipta Bhattacharjee, Partner, Khaitan & Co
“A budget to take note of! It should boost key manufacturing sectors and specially the EV market. The revision in the tariff rates and reduction in the category would lead to lesser disputes in terms of classification and applicable rates leading to greater certainty and ease of doing business in India.” — Onkar Sharma, Partner, Khaitan & Co
“The regulatory reform initiative under a High-Level Committee (non-financial sector) and sectoral work on the Atomic Energy Act and civil liabilities are bright spots in this budget speech. Good to see this inspiration from a stellar Economic Survey. A great deal of policy reform effort will by design be at the state level.” — Arjun Goswami, Director, Public Policy, Cyril Amarchand Mangaldas
“Unlike the previous budgets, this budget has moved away from green growth as a theme. No significant new announcement for the green economy other than the critical mineral and lithium-ion battery customs duty exemptions and the enhanced focus on nuclear power.” — Bose Varghese, Senior Director-ESG, Cyril Amarchand Mangaldas
“Announcement to set up 5 small modular reactors (SMRs) is long overdue and will greatly contribute to 500 GW non-fossil fuel installed capacity target by 2030 and give a push to India’s decarbonisation agenda. That said, matching financial outlay to fund such reactors is missing in the budget announcement.” — Ramanuj Kumar, Partner, Co-Head – Projects (Energy & Energy Transition), Cyril Amarchand Mangaldas
“Exemption of BCD on critical minerals used in EV battery manufacturing will reduce cost of EVs and is expected to accelerate adoption of EVs. However, expectations of tax breaks for EV buyers have not been realised. Cost parity of EVs with ICE vehicles remains one of the primary obstacles in higher EV adoption in the country.” — Ramanuj Kumar, Partner (Co-Head – Projects (Energy & Energy Transition)), Cyril Amarchand Mangaldas
“The changes to the Atomic Energy Act and Civil Liability for Nuclear Damage Act would create an enabling framework for private participation in this sector. As the FM’s speech recognises nuclear energy is critical for our energy transition.” — L Viswanathan, Senior Partner, Cyril Amarchand Mangaldas
SKILL DEVEOPMENT
“By announcing introduction of a national guidance framework to support growth of Global Capability Centres, along with focus on upskilling through establishment of Centres of Excellence, the Government of India has clearly recognised the significance of Global Capability Centres to India’s growth story. This is an encouraging move aimed at keeping India at the forefront of innovation” — Swathy Ramanath, Partner, Khaitan & Co
“Key initiatives include the establishment of five National Centre of Excellence for Skilling, a ₹500 crore investment in the Centre of Excellence for AI in Education, the addition of 10,000 new medical seats, and 6,500 new seats across IITs. These measures will enhance talent development, drive innovation, create a skilled workforce, and help in positioning India as a global leader.” — Aarushi Jain, Partner (Head – Media, Education & Gaming), Cyril Amarchand Mangaldas
INDUSTRIES AND MANUFACTURING
“The continued impetus to the industrials sector through the new announcement, coupled with increased share of manufacturing activity for India, signals strong growth potential. Along with tax rebates, a focused approach will be key to building a resilient and competitive manufacturing ecosystem. The government’s sustained emphasis on expanding the market share of manufacturing is encouraging. While detailed guidelines are awaited, the PM eDrive policy, complemented by ongoing support for clean technology, batteries, and EVs, is expected to substantially accelerate growth in the sector.” — Ashraya Rao, Partner, Khaitan & Co
“The Finance Minister’s proposal to introduce a national guidance framework for Global Capability Centres (GCCs) especially for emerging Tier 2 cities is a positive signal. This initiative comes at an opportune time, as India’s GCC market is projected to experience significant surge.” — Vinita Krishnan, Executive Director, Khaitan & Co
“Policy formulation for developing GCC in Tier 2 cities and setting up of SWAMIH Fund 2 to ensure completion of 1 lakh homes is an excellent step that will also ensure opportunities for last-mile funding for fund houses.” — Harsh Parikh, Partner, Khaitan & Co
“The Union Budget clearly demonstrates that semiconductor and electronic manufacturing remains the key focal growth areas for the nation. With a direct eye on addressing the taxation concerns faced by the global supply chain players in the chip and semiconductor equipment manufacturing space, the Government has announced two key developments: (a) a presumptive taxation regime for non-residents who provide services to resident company that is establishing/operating an electronics manufacturing facility; and (b) safe harbour for tax certainty for non-residents who store components for supply to specified electronic manufacturing units.” — Sarthak Sarin, Partner, Khaitan & Co
“Building further on the success of Special Window for Affordable and Mid-Income Housing (SWAMIH) Fund-I in delivering over 50,000 houses until 2024 through extension of priority debt funding to stressed housing projects, the Hon’ble Finance Minister has announced the second fund with an expected investment of INR 15,000 crores. The Fund can be expected to provide blended debt facility to such stalled real estate projects across the country and aid completion and delivery of over 100,000 apartments. This last mile funding will go a long way in arresting erosion of the debt/ investment made by the existing lenders and the homebuyers in these projects. This will also provide viable investment participation avenue to private investors alongside the government and the investment may hopefully, also enjoy priority treatment similar to Fund I in case of insolvency of the relevant real estate SPV under the IBC regime.” — Rajeev Vidhani, Partner, Khaitan & Co
“In line with ‘make in India’ policy specific exemptions have been provided to electronic goods such as full exemption to parts of open cell which were subject to 2.5% BCD, capital goods exemptions have been provided to boost domestic manufacture of lithium-ion battery and manufacture of ships in India (Including ship breaking services).” -Nupur Maheshwari, Executive Partner, Lakshmikumaran & Sridharan Attorneys
“The current budget is in line with the theme of rationalisation of tariff Structures, promote domestic manufacturing, provide a flip to exports of goods from India and ‘ease of doing business’.” — Nupur Maheshwari, Executive Partner, Lakshmikumaran & Sridharan Attorneys
FOREIGN INVESTMENTS
“In a commendable move, the Union Budget 2025 has recognised the immediate need to provide relief to taxpayers and help reinvigorate India’s consumption engine. The proposed income tax slab changes will result in more disposable income in the hands of the middle class, providing a shot in the arm for the domestic demand growth story which had begun to show signs of slowing down. For India Inc, the focus on enhanced ease of doing business with speedy approval of corporate mergers liberalised FDI in insurance up to 100%, further simplification of compliances, and decriminalisation of 100 additional provisions under business laws will boost investor confidence. Significant announcements to provide a credit boost to MSMEs and first-time entrepreneurs belonging to vulnerable sections of society showcase the Government’s commitment to inclusive development.” — Haigreve Khaitan, Senior Partner, Khaitan & Co
“The proposal to increase FDI in insurance to 100% is a timely and much-needed reform. This move will significantly boost capital inflow into the sector and enhance insurance penetration, aligning with the regulatory vision of ‘Insurance for All’ by 2024. The announcement to simplify regulations is also a welcome step. However, a detailed review of the fine print—particularly regarding the requirement that the entire premium must be invested in India—is essential. We also await further operational guidance from IRDAI on the way forward.” — Aravind Venugopal, Partner, Khaitan & Co
“The FM’s announcement to allow 100% FDI in insurance is a strategic move that will have a profound long-term impact on the health insurance sector. It will foster greater market development, encourage the adoption of best practices, and drive innovation in product design and service delivery. This, in turn, will empower individuals and families to better manage their healthcare expenses and access quality care when they need it most.” — Sameer Sah, Partner Khaitan & Co
“Increase of FDI to 100% in the insurance sector is a very positive move and will help usher in greenfield investment from marquee foreign insurance firms not yet present in India and will also see existing foreign insurance players buyout their Indian joint venture partners and private equity players keen to monetize their stake. With the IRDAI having already made all-round regulatory changes in the recent years with an aim to bolster market penetration, the Indian insurance sector is certainly going to be very busy in the coming years with this bold move by the Indian government.” — Niren Patel, Partner, Khaitan & Co
“The past few budgets have recognised the need for a strong financial sector to meet the needs of the nation. Keeping abreast with the development of financial sector, the government basis the Insurance Laws (Amendment) Bills, 2024, has raised the FDI limit in insurance sector from 74% to 100%. This would promote, further investments by key investors and make the sector competitive and comparable to global players.” — Moin Ladha, Partner, Khaitan & Co
“When the sector was liberalised to 74 percent in 2021, the Industry did not see as many control deals as it should have. This was primarily attributed to the lack of suitable Indian partners. With the sector now fully opening up to 100 percent FDI, Foreign Investors will no longer be constrained by reliance on Indian counterparts. Though the conditions of investment are awaited, we are now truly at the cusp of a new era for the sector.” — Indranath Bishnu, Partner (head -insurance), Cyril Amarchand Mangaldas
“In a bid to accelerate India’s growth aimed at achieving a “Viksit Bharat”, the Government has continued its concerted push to make India an attractive destination for foreign investment, and thus plans yet again to revamp its Model Bilateral Investment Treaty for the future. It will be interesting to see what parts of the BIT will be reconsidered. While the model BIT was released in 2016, India has signed only a handful of BITs since then, including with Belarus, Uzbekistan, and the latest one with the UAE. India also seems to be leaning in favour of free trade or co-operation agreements, rather than bilateral investment treaties with detailed dispute resolution provisions, including investor-state arbitration. The current model BIT requires a disputing investor to exhaust local remedies before domestic courts for at least five years before resorting to arbitration, and leaving a fairly short window within arbitration may be formally invoked. These are often seen as a pinching point for foreign investors and it is hoped that the procedure is revamped, not just to benefit foreign investors into India, but also Indian investors in foreign states, who will similarly look for adequate protection of their remedies.” — Shaneen Parikh, Partner (Head – International Arbitration), Cyril Amarchand Mangaldas
JAN VISHAWAS BILL 2.0
“The Finance Minister’s announcements signal a strong commitment to improving the ease of doing business in India. Measures like fast-tracking mergers and restructuring, coupled with a comprehensive review of non-financial regulations, the introduction of an investment-friendliness index, and the Jan Vishwas Bill, all point towards a more streamlined and transparent regulatory environment. These initiatives, combined with the focus on trust-based governance, should significantly enhance investor confidence and make India an even more attractive destination for business.” — Sameer Sah, Partner Khaitan & Co
AGRICULTURE SECTOR
“The Finance Minister’s announcement regarding access to global best practices for farmers is a significant step towards modernizing Indian agriculture. This initiative has the potential to not only improve yields and farm incomes but also strengthen the connection between agriculture and healthier food systems for generations to come. This link between agriculture and health is a great way to enhance a dual focus on productivity and health; and this also provides greater opportunities for Indian and foreign businesses for more technical cooperation.” — Sameer Sah, Partner Khaitan & Co
“The establishment of a Makhana Board in Bihar is a smart move. It recognizes the potential of this healthy snack to boost both the economy and public health, creating new opportunities for farmers and promoting healthier eating habits.” — Sameer Sah, Partner Khaitan & Co
“Budget 2025 announces reforms in the agriculture sector including Dhan Dhanya Krishi Yojna, high yield seed varieties, and crop diversification to allow for greater produce and creation of employment. This helps farmers achieve self-sufficiency and reduce migration. These measures will allow for higher export of produce outside India and boost cross-border trade, and ultimately limit migration to metro cities.” — Moin Ladha, Partner, Khaitan & Co
MSME/INDIA AS A TOY MANUFACTURING HUB
“Turning India into a toy manufacturing hub will unleash the creativity and innovation of our MSMEs. This initiative has the potential to bring unique and high-quality toys to the market, both domestically and internationally, and will also allow global brands and leaders to consider India for their manufacturing base.” — Sameer Sah, Partner Khaitan & Co
“The enhancement of MSME investment and turnover limits is a game-changer for India’s manufacturing and export-driven growth. With MSMEs contributing 37% to manufacturing and 45% to exports, this move will unlock greater access to credit, drive job creation, and boost global competitiveness. By encouraging scale without fear of losing incentives, it will strengthen supply chains, formalize businesses, and accelerate India’s journey as a global manufacturing powerhouse.” — Atul Pandey, Partner, Khaitan & Co
“Strong focus on MSME and start up with additional Fund of Fund propelled by the success of funds like Self Reliant India Fund should prove to be a strong support for start up and MSMEs. The AIF industry will get strong support from these Fund of Funds and is expected to grow in the coming years.” — Siddharth Shah, Senior Partner, Khaitan & Co
ARTIFICIAL INTELLIGENCE
“The government’s continued investment in AI, now extending to education, signals a strategic vision. It recognizes that AI is not just a technological advancement but a fundamental driver of future economic and social progress. This initiative will empower the next generation with AI skills, driving innovation and growth across various sectors.” — Sameer Sah, Partner Khaitan & Co
TCS AND TDS
“The increase limit on TCS applicability from 7 lac to 10 lac wouldn’t really have the desired effect given that in the context of the total LRS limit of USD 2,50,000 this increase is less that 1.5%” — Moin Ladha, Partner, Khaitan & Co
“Noteworthy changes include tax exemption for taxpayers with income up to INR 12 lakh, tax-free withdrawals for senior citizens from the National Savings Scheme post-August 2024, and higher TDS exemption limits for rent and senior citizens’ interest income. Additionally, the Budget allows more time to file updated income tax returns, raises the TCS threshold for LRS to INR 10 lakh, and removes TCS for education-related remittances funded by loans from specified financial institutions.” — Shaily Gupta, Partner, Khaitan & Co
“Exempting rent up to ₹6 lakh from TDS will greatly benefit tenants, who account for 40% of residential rentals. This will ease the financial burden on middle-class families, who often struggle with high rental costs and additional deductions. It will also encourage more investor-owners to rent out properties without tax concerns, boosting the residential real estate sector by improving supply and affordability.” — Abhilash Pillai, Partner, Cyril Amarchand Mangaldas
“All eyes now on the new tax bill proposed to be introduced next week. Let’s hope that the concept of “Trust first and, Scrutiny Later” is reflected in the fine prints, as always, the devil is in the details. This announcement is followed by a series of amendments aiming to simplify the existing Income tax Act like rationalisation of TDS and TCS provisions, enhanced personal tax limits, enhanced time limit to file updated return, certainty in taxation for AIF, etc will significantly boost the sentiments and help India continue its growth momentum.” — Kunal Savani, Partner, Cyril Amarchand Mangaldas
“Removing TCS on remittances for education purposes if the remittance is funded through a loan taken from a specified financial institution will give impetus to foreign universities setting up in GIFT IFSC, while facilitating foreign education for Indian upskilling.” — Ketaki Mehta, Partner, Cyril Amarchand Mangaldas
“The remittances under the LRS were severely impacted by the onset of TCS provisions which got introduced in October 2020. Despite a relief granted for remittances upto Rs. 7 lakhs, the issue got further exacerbated in October 2023 when the rate was increased from 5% to 20% in respect of remittances made for purposes other than education/medical treatment. The present budget intends to increase the threshold for collection of TCS from the existing Rs. 7 lakhs to Rs. 10 lakhs. Further, the budget also proposes to keep remittances for the purposes of education which is funded out of a loan obtained from specified financial institutions, outside the ambit of TCS (presently such remittances are subject to a TCS of 1.5% in excess of Rs. 7 lakhs).” –Sudin Sabnis, Partner, Lakshmikumaran & Sridharan Attorneys
INVESTMENTS AND STARTUPS
“Keeping up with the approach in the previous few budgets, the government has once again focused on the Indian startups with a clear intention to innovate through technology and better access to capital, investment. To achieve the same the government has established a new fund of fund with expanded scope and fresh contribution of 10,000 Cr rupees to achieve the same. These funds of funds would receive a commitments for over 9 lakh crore. With majority of the youth tilting to the start up India, this move by the government would indeed be a step closer to Viksit Bharat.” — Moin Ladha, Partner, Khaitan & Co
“The Finance Bill seeks to put an end to the controversy around the characterisation of income earned by Category I / II Alternative Investment Fund (“AIF”) as ‘capital gain’ vs ‘business income’. It is proposed that income arising on transfer of shares and securities shall be treated as capital gain which will be exempt from tax for the AIF and taxed directly in the hands of investors on a pass through basis” — Rahul Jain, Director, Khaitan & Co
ATMANIRBHAR BHARAT/ MAKE IN INDIA
“In line with the objectives of the Budget 2025, the Government has announced a new manufacturing initiative under the “Make in India” campaign to provide extensive policy support and a structured framework to assist small, medium, and large-scale industries. This mission is proposed to be focused on establishing an ecosystem for solar PV cells, electrolysers, and grid-scale batteries. This will boost domestic manufacturing, create jobs, drive technological advancements, promote sustainability, enhance competitiveness, attract foreign investment, develop infrastructure, and improve energy security in India.” — Moin Ladha, Partner, Khaitan & Co
FISHERIES
“The Budget proposes a scheme to enhance the seafood industry and boost fisheries exports in exclusive economic zones and the high seas, with a particular focus on the Andaman & Nicobar Islands. As one of the largest seafood exporters globally, the Indian economy will benefit from these supportive policies, which are expected to further strengthen the sector and facilitate cross-border trade.” — Moin Ladha, Partner, Khaitan & Co
FINANCING
“One of the key announcements by the Finance Minister to enhance trade finance is the introduction of cross-border factoring. This will enable Indian exporters to access liquidity by entering into factoring arrangements with foreign financiers. It will also help them comply with the RBI’s export directions, which require repatriation of export proceeds within nine months.” — Moin Ladha, Partner, Khaitan & Co
“The PM Swanidhi Scheme will be revamped with higher loan limits and the introduction of a ₹30,000 UPI-linked credit card. The government will also facilitate identity card issuance and registration on the e-Shram portal for gig workers, providing insurance coverage for nearly 1 crore workers. This is clear move by the government to promote financial digital technology amongst the people of the nation and make India a fin tech hub.” — Moin Ladha, Partner, Khaitan & Co
“The partial credit enhancement scheme for infra will make investments and bankability of these projects easier to achieve and in the long run make them more cost efficient for the country.” — Santosh Janakiram, Senior Partner, Cyril Amarchand Mangaldas
PUBLIC-PRIVATE PARTNERSHIP
“The three-year plan for PPP projects represents a significant opportunity to stimulate private investment in greenfield infrastructure. By broadening the scope of projects beyond traditional capital expenditure needs, this initiative aims to enhance infrastructure development across various sectors. It is expected to not only accelerate project execution but also foster innovation and efficiency, ultimately contributing to sustainable economic growth and improved public services throughout the country.” — Gahan Singh, Partner, Khaitan & Co
MEDICINES AND DRUGS
The “Heal in India” initiative aims to capitalise on the growing medical tourism industry in India. Significant infrastructure push by the government can help in this initiative.” — Ashwin Sapra, Partner (Head – Pharma & Healthcare), Cyril Amarchand Mangaldas
“A full exemption from BCD is a welcome initiative as more lifesaving drugs would be available to patients. The proposal to add 200 more cancer centres across the country is a welcome one. Coupled with import duty reliefs and inclusion in patient assistance programs, this will go a long way in reducing treatment costs and increasing the availability of latest treatment methods to cancer patients.” — Ashwin Sapra, Partner (Head – Pharma & Healthcare), Cyril Amarchand Mangaldas
“This year’s budget has demonstrated the fact that the government has listened to the needs of patients suffering from Cancer. The inclusion of additional cancer drugs in the list of drugs exempted from basic customs duties and the announcement of the opening of 200 cancer centers will certainly go a long way in helping patients. This signals the resolve of the establishment in combating this dreaded disease.” — Ashwin Sapra, Partner (Head – Pharma & Healthcare), Cyril Amarchand Mangaldas
“To provide benefit to common man grappling with life threatening diseases, complete exemptions to 36 life saving drugs and partial exemption to 6 life saving drugs have been provided.” — Sudin Sabnis, Partner, Lakshmikumaran & Sridharan Attorneys
GLOBAL CAPABILITY CENTRES
“The focus on High Tech services and manufacturing growth, both on the supply side through infrastructure like the Tinkering Labs, as well as on the supply side through the focus on GCCs and Electronics manufacturing, holds great promise.” — Arun Prabhu, Partner (Head – Technology), Cyril Amarchand Mangaldas
INFRASTRUCTURE DEVELOPMENT
“Announcement to provide ₹1.5 lakh crores to states towards 50-year interest free loans, for infrastructure development, is a very positive step – will augment the capex spending capability of States for infrastructure development which will have a multiplier effect for the economy.” — Ajay Sawhney, Partner (Head- Northern Region), Cyril Amarchand Mangaldas
“Expanding the UDAAN scheme to 120 new destinations will significantly enhance connectivity, driving infrastructure development in smaller towns and emerging cities. Improved air connectivity will attract businesses, industries, and tourism, increasing demand for commercial and residential real estate. As these destinations develop, land values are likely to rise, encouraging investments in housing, retail, and hospitality sectors. The expansion will also create job opportunities, leading to higher disposable income and greater demand for quality housing. Overall, this initiative will accelerate urbanization, making previously untapped real estate markets more attractive for developers and investors.” — Abhilash Pillai, Partner, Cyril Amarchand Mangaldas
“The announcements made in the Union Budget 2025 indicates continued Government focus for providing enhanced credit access for the infrastructure sector, through National Bank for Financing Infrastructure and Development (NaBFID). This is expected to play a crucial role in reviving and providing impetus to long-term infrastructure financing, including the development of bonds and derivatives markets to further augment infrastructure growth. Additionally, NaBFID is proposed to act as a market maker to ensure liquidity in the bond market and provide innovative credit enhancement solutions. With a strong emphasis on sustainable finance, NaBFID is poised to contribute significantly to climate-resilient infrastructure development, thereby boosting project financing and promoting economic growth in India.” — Kumar Saurabh Singh, Partner, Khaitan & Co
“Budget 2025 prioritizes last-mile connectivity, proposing broadband access for all government schools and primary health centers under BharatNet. With BharatNet designated as a ‘special project’ under Right of Way, India can expect faster internet rollout in underserved areas.” — Harsh Walia, Partner, Khaitan & Co
“The creation of digital public infrastructure, Bharat Trade Net for international trade will help in seamless completion of international trade transactions and help Indian companies minimise and mitigate risks with trade documentation and financing through an electronic platform.
The proposal for NaBFID to provide partial credit enhancement for corporate bonds will allow corporates to access public markets for funding infrastructure.”
“The FM has signalled a light touch regulatory framework based on principles and trust for unleashing productivity and employment. This can significantly ease the compliance burden whilst ensuring that the objectives of regulation are well-maintained.” — L Viswanathan, Senior Partner, Cyril Amarchand Mangaldas
NPS VATSALYA SCHEME
“Benefit of deduction under Section 80CCD for NPS Vatsalya Scheme and their ability to partial withdrawal of the said sum in certain contingencies is a very welcome change that will encourage a number of taxpayers to opt for this scheme.” — SR Patnaik, Partner (Head – Yaxation), Cyril Amarchand Mangaldas
