Budget 2025 Expectations Live: Enhance India’s global competitiveness
“As the Union Budget 2025 draws near, there are significant expectations centered on simplifying compliance, resolving disputes, and enhancing India’s global competitiveness. Roadmap and enablers for complete and integrated digital overhaul of Customs processes, leading to reduction in manual errors and delays. The introduction of an Amnesty Scheme to address the backlog of pending Customs disputes is another key demand, inspired by the success of similar initiatives in VAT, Service Tax, and Income Tax. Rationalizing tariffs to address inverted duties remains critical to boosting domestic manufacturing under the ‘Make in India’ initiative. Stakeholders also expect a reduction in customs duties on renewable energy and EV components to support sustainability goals. Clarity on the Manufacture and Other Operations in Warehouse Regulations (‘MOOWR’), particularly on IGST applicability under the newly inserted Section 65A of the Customs Act, 1962, is eagerly awaited.
Additionally, there is a call for extending the Remission of Duties and Taxes on Export Products (‘RoDTEP’) incentives, which expired on December 31, 2024, for exports under Advance Authorisation (‘AA’), Export-Oriented Units (‘EOU’), and Special Economic Zones (‘SEZ’). Exporters are advocating for a longer-term, stable policy as interim relief through an internal circular only extends the scheme until January 14, 2025. Furthermore, the introduction of an incentive scheme like RoDTEP for service exporters and the simplification of Customs (Administration of Rules of Origin under Trade Agreements) (‘CAROTAR’) rules, including adherence to verification timelines and removal of bank guarantee requirements, are essential steps to improve the ‘ease of doing business’ index,” says Ranjeet Mahtani, Partner, Dhruva Advisors:
