Business@2025: From tax reforms to trade pacts, a year of course correction

The government moved to steady the economy amid global uncertainty. Crises at IndiGo and BluSmart, meanwhile, underlined the need for tighter oversight and stronger governance

Turbulence on the ground 

India’s aviation sector was thrown into disarray in early December after IndiGo, the country’s largest airline, cancelled over 5,500 flights, leaving thousands of passengers stranded. The disruption followed new crew-rostering rules issued by aviation regulator Directorate General of Civil Aviation, mandating longer rest hours for pilots and cabin crew. IndiGo, which commands around 60% market share and operates nearly 2,000 flights daily, had reportedly failed to adequately plan for the transition and was forced to ground more than half its fleet. 

  Tax reset 

On September 22, the Centre rolled out the first major overhaul of the goods and services tax (GST) since its introduction in 2017. The reform focused on rate rationalisation, cutting slabs from four (5, 12, 18 and 28 per cent) to two (5 and 18 per cent), with the aim of boosting consumer demand. Luxury and “sin” goods such as tobacco, aerated drinks and pan masala were placed in a separate 40% tax bracket. (Left) After the slabs were revised, Finance Minister Nirmala Sitharaman visited a market in New Delhi to engage with traders. 

Photo: @nsitharamanoffc/X

 

Power changes address 

Key ministries, including finance and home affairs, moved out of the iconic North Block to Kartavya Bhavan, part of the Common Central Secretariat complex developed under the Central Vista Redevelopment Project. The finance ministry’s relocation marked a significant administrative shift away from the colonial-era complex, aimed at easing space constraints, consolidating offices, and improving inter-ministerial coordination. North Block will be preserved as a heritage structure. 

Photo: Harsh Kumar

 

Trade bridges 

India stepped up its trade diplomacy with a series of major agreements. On July 24, it signed the Comprehensive Economic and Trade Agreement with the United Kingdom (right), granting Indian goods 99% duty-free access to UK markets, while nearly 90% of UK goods will enter India at zero tariff. In December, India concluded a free-trade agreement with New Zealand, offering zero-duty access on 100% of Indian exports, and signed a Comprehensive Economic Partnership Agreement with Oman, under which 98.08% of Oman’s tariff lines — covering 99.38% of Indian exports — will be duty-free. The long-negotiated India-US trade deal, however, remained elusive. 

Photo: Reuters

 

IPO fervour 

It was a year marked by one public offering after another. The standout was LG Electronics India’s ₹11,607 crore initial public offering (IPO), which attracted bids worth ₹4.4 trillion — the highest ever for a domestic listing. The issue surpassed the previous record held by Bajaj Housing Finance, whose ₹6,560 crore IPO had garnered bids worth ₹3.24 trillion last year. 

Photo: Reuters

 

Vrooming in 

Elon Musk-led Tesla finally made its India debut, opening its first showroom in Mumbai on July 15. The US electric vehicle maker entered the world’s third-largest car market, seeking growth amid slowing sales in China and Europe. 

Photo: PTI

 

Green dream interrupted 

BluSmart, once the poster child of India’s green mobility push, collapsed in April after its founders, Anmol Singh Jaggi and Puneet Singh Jaggi, were embroiled in a financial scandal. It halted ride-hailing operations, faced driver protests, and resorted to a fire sale of its EV fleet. Following allegations of fund diversion for luxury buys, Sebi barred the Jaggi brothers and their listed firm, Gensol Engineering, from the securities markets. 

Photo: Reuters

 

Trust issue 

Neville Tata, son of Tata Trusts Chairman Noel Tata, and Tata group veteran Bhaskar Bhat were appointed trustees of the Dorabji Tata Trust in November, bringing to a close months of internal discord that had seen senior Tata group leaders meeting Union ministers Nirmala Sitharaman and Amit Shah. Analysts say Neville Tata’s induction, following the removal of Ratan Tata’s close associate Mehli Mistry from two key trusts, signals Noel Tata’s growing influence within the group. 

Photo: File

 

Big bets on bytes 

India drew investment commitments worth $70 billion in artificial intelligence and data centres. Amazon pledged $35 billion by 2030, while Microsoft CEO Satya Nadella (right) announced a $17.5 billion investment during his India visit in early December. Google, meanwhile, unveiled plans to establish a $15 billion AI data hub in Visakhapatnam, its first and largest such facility outside the US. 

Photo: Reuters