As 2025 approaches, India’s business landscape has evolved from not just one defining event, but a cascade of developments shaping the business sector. Monetary policy signals, reforms and changes in policy decisions, and global corporate entries continued to unfold throughout the year, each event marking a significant moment in its own way. Together, these developments represent notable business moments characterizing 2025. Neither exhaustive nor strictly chronological, this list invites us to revisit the tapes of ‘2025’.
Trump’s tariff trade war
On 30th July 2025, US President Donald Trump announced that there will be a 25% tariff on imports from India. With fine from August 1, 2025. President Donald Trump Linking the trade penalty to geopolitical alignment, India’s purchases of energy and military equipment from Russia were cited as the primary rationale behind the move.
Furthermore, US trade policy towards India witnessed several reversals. Later in August 2025, following diplomatic engagement, the tariffs were suspended (albeit temporarily) before being reinstated. Expanded to 50% on August 27, 2025 Through subsequent executive orders. As of mid-December 2025, there is still no trade deal between India and the US and no tariff relief.
Notification of Labor Codes
On November 21, 2025, Central government formally notified all four labor codesInitiation of major reforms in labor laws. The Wage Code, 2019, the Industrial Relations Code, 2020, the Social Security Code, 2020 and the Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020 were passed between 2019 and 2020, but were not notified for several years due to opposition from trade unions. These are likely to be fully operational from April 1, 2026.
The notification brought several structural changes such as unification of four labor laws related to bonuses and wages; Consolidation and modernization of 13 existing Centra labor laws related to workplace health and safety measures; expanding universal social security coverage to gig workers; Unification of laws governing trade unions.
100% FDI in insurance
Lok Sabha on 16 December 2025 A bill was passed which proposes to increase foreign direct investment (FDI) in the insurance sector from 74% to 100%.Finance Minister Nirmala Sitharaman said that 100% FDI allowed This will pave the way for further capital investment, better technology and people will get access to better insurance products. It is noteworthy that the FDI limit for insurance companies was increased from 26% to 49% in 2015 and from 49% to 74% in 2021.
DPDP rules move from legalization to compliance
On 14 November 2025 Central government notifies major parts of Digital Personal Data Protection (DPDP) Act, 2023Addressing the need for a law to protect people’s data privacy. The Center worked towards operationalizing the DPDP Act through consultations and drafting draft rules governing consent, data fiduciary, penalties and compliance timelines. While the Act itself was passed in 2023, the year 2025 marked the transition from legalization to compliance as business houses started preparing for actual compliance through data audits, consent frameworks and governance structures.
Not only this. Following protests from disability rights activists, the Ministry of Electronics and Information Technology also amended the DPDP Rules, 2025, and removed the provision in the draft that grouped persons with disabilities with children for the purpose of parental-based consent.
Activists, who had described the earlier provision as “infantilization” of persons with disabilities, welcomed the change in the notified rules, although they said several concerns still remained.
gst reform
In 2025, Center reduces the number of slabs under the Goods and Services Tax (GST) systemRetaining the 5% and 18% slabs and eliminating the 12% and 28% slabs. Furthermore, it introduced a discount rate of less than 1% and a high “sin rate” of 40% on only five to seven items.
Apart from slab-rate changes, the GST reforms in 2025 also focus on compliance and system-tightening measures.
New income tax law legalized
In August 2025, Parliament passes new Income Tax Bill, 2025 And later in the same month it received Presidential assent, which became the Income Tax Act, 2025. The new law replaces the Income Tax Act of 1961 and is scheduled to come into effect from April 1, 2026. The Act was one of the most significant changes made to the country’s direct tax structure in decades. Although the law did not immediately change the tax rates at the time, Sitharaman said the measure was aimed at simplifying the language, removing redundancies and modernizing tax administration. For business houses, the passage of the Act was a notable milestone, as it laid the legal basis for future tax compliance, assessment and litigation under a restructured framework.
Amendment in income tax slab
Central Government in Union Budget 2025-26 Income tax slab structure revised Under the new tax regime, this will result in zero tax on annual income up to ₹12 lakh and an effective tax-free limit of up to ₹12.75 lakh for salaried taxpayers after standard deduction of ₹75,000.
Ms Sitharaman said the move is aimed at providing adequate tax relief to taxpayers and restoring confidence among the middle class people. Sitharaman said that this benefit will boost domestic consumption and investment.
Record GST Collection
In April 2025, GST collections reach record high of ₹2.37 lakh croreThe highest monthly revenue figure recorded since the implementation of GST in 2017. This represents a year-on-year increase of 12.6% compared to April 2024 figures, reflecting a strong economic activity.
RBI repo rate reset
After 57 months of lull since 2020, only in 2025, the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) under Governor Sanjay Malhotra reduced the repo rate four times. The first cut was announced on February 7, 2025When the MPC unanimously reduced the repo rate by 25 basis points (bps) to 6.25%. After this it was done Another unanimous rate cut by 25 bps to 6% on April 9, 2025Furthermore, on June 6, 2025 MPC approves major cut of 50 bps to 5.50% with 5:1 majority voteAfter a detailed assessment of the emerging macroeconomic conditions, the MPC voted unanimously to keep the repo rate unchanged at 5,50% in both August and October 2025, The MPC voted unanimously to reduce the policy repo rate by 25 basis points on December 5, 2025 (BPS) has been reduced to 5.25% with immediate effect. So, overall, 2025 is a crucial year for both banks and borrowers as the RBI’s MPC has cut the repo rate by 125 basis points (1.25%) on four occasions, unlike in the last five years post-pandemic. For Indian business houses, the RBI rate cut was considered the key macro event of 2025.
Fastest regional activity in more than a decade
In August 2025, India’s manufacturing sector records its fastest expansion in more than 17 yearsSupported by strong demand which led to increased new orders and production. That is, HSBC India Manufacturing Purchasing Managers’ Index (PMI) increased from 59.1 points in July to 59.3.
India’s services sector also recorded rapid growth in August 2025.The growth rate has reached the highest level in 15 years due to strong demand. Specifically, the HSBC India Services PMI compiled by S&P Global rose to 62.9 in August from 60.5 in July, but fell short of the flash estimate of 65.6.
tesla moment
American electric vehicle company Tesla on July 15, 2025 Business operations officially started in India By opening its first ‘Experience Centre’ at Bandra-Kurla Complex (BKC), Mumbai. It is noteworthy that before the official launch, Tesla founder and owner Elon Musk had lobbied for a cut in import duty, however, his efforts went in vain.
in india, Tesla introduced electric vehicle Model YWhich was the world’s best-selling vehicle in 2023, becoming the first EV to achieve this milestone at that time. Vehicle prices in India were much higher than in other countries due to the almost 100% import duty imposed on completely built units (CBUs).
Tesla’s entry is not just another entry, like every year some foreign company launches its wheels in the Indian market. Tesla started taking pre-orders from Indian customers back in 2016 (there was no timeline for delivery). Therefore, it took almost nine years for Tesla to enter India and 2025 opened the doors. Additionally, in August 2025, Tesla opened its second experience center at Aerocity, Delhi in collaboration with the city. first tesla charging stationFurthermore, in November 2025, Tesla appoints former Lamborghini India head Sharad Agarwal To lead its Indian operations.
Entry of Vinfast of Vietnam
Vietnam’s electric vehicle company VinFast officially enters India With the opening of its first EV assembly plant outside Vietnam. The new facility was inaugurated on August 6, 2025 in Thoothukudi, Tamil Nadu in the presence of Chief Minister MK Stalin. The company is established on a parcel of 400 acres of land within the SIPCOT Industrial Park.
Overall, the defining business moments of 2025 arise less from sweeping changes but more from concrete decisions, policy changes as well as external shocks. Nevertheless, the year left an indelible mark on India’s business landscape. Together these events form a factual snapshot of how businesses fared in the year.
