Doing Business In... 2026 Comparisons

India follows a common-law system, supplemented by a comprehensive written Constitution and an extensive body of statutory legislation.

The judiciary comprises a unified and integrated hierarchy headed by the Supreme Court of India, which is the apex judicial authority and the final court of appeal in constitutional, civil and criminal matters. The High Courts exercise jurisdiction over their respective states and union territories and supervise the subordinate judiciary within their territorial jurisdiction. The subordinate court system consists of the District and Sessions Courts, Magistrates’ Courts and Civil Judges’ Courts. District and Sessions Courts function as the highest courts at the district level for the adjudication of civil and criminal matters, respectively, while the Civil Judges’ Courts and Magistrates’ Courts form the lower tiers of the subordinate judiciary, exercising jurisdiction over less serious civil and criminal matters, respectively.

In addition to the ordinary court system, specialised tribunals have been constituted to adjudicate disputes in specific subject matters. Appeals from such tribunals generally lie before the High Courts or, where applicable, the Supreme Court.

Foreign investment in India is primarily governed by the Foreign Exchange Management Act, 1999 (FEMA), the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019 (“NDI Rules”) and the Consolidated FDI Policy issued by the Department for Promotion of Industry and Internal Trade (DPIIT).

A foreign investor may invest in India through, among others, the following routes:

• Foreign direct investment (FDI), under either the automatic route or the government approval route. Under the automatic route, no prior government approval is required, and foreign investments may be made up to the applicable sectoral cap, subject to the prescribed requirements. Investments falling under the government approval route require prior approval from the relevant authority. FDI is generally preferred for strategic and long-term investments in Indian businesses, including through wholly owned subsidiaries or joint ventures, particularly where the investor seeks to participate in the management/control of the entity.
• Investment as a Foreign Portfolio Investor (FPI), subject to prior registration with the Securities and Exchange Board of India (SEBI) and compliance with the applicable FPI regulations. The FPI route is preferred for portfolio investments in listed securities, where investors seek flexibility to deal in securities through stock exchanges without adhering to the pricing guidelines and regulatory approval requirements applicable to FDI.
• Investment as a Foreign Venture Capital Investor (FVCI), subject to prior registration with SEBI and compliance with the applicable FVCI regulations. This route is preferred by venture capital funds and early-stage investors investing in start-ups and high-growth businesses.
• Investment by a Non-Resident Indian (NRI) or an Overseas Citizen of India (OCI): (a) on a repatriation basis through a recognised stock exchange in India, subject to the prescribed limits; or (b) on a non-repatriation basis, including through a company, trust or partnership firm incorporated outside India and owned and controlled by NRIs or OCIs, subject to the applicable sectoral caps and entry routes. These routes are preferred by NRIs and OCIs investing in India, to retain flexibility for repatriation of investment. Investments on a non-repatriation basis are generally treated as domestic investment.
• Investment in units of an Investment Vehicle, being an entity registered and regulated by SEBI under the applicable regulatory framework, including alternative investment funds, real estate investment trusts and infrastructure investment trusts.

The NDI Rules comprehensively regulate foreign investment in India and prescribe sectoral caps, entry routes, pricing guidelines, reporting requirements and sector-specific conditions applicable to foreign investments. The NDI Rules also prescribe additional conditions for certain sectors, including retail trading, e-commerce and construction and development.

Prohibited Sectors

The Consolidated FDI Policy identifies certain sectors in which foreign investment is prohibited, including lottery business, gambling and betting, chit funds, Nidhi companies, atomic energy, trading in transferable development rights, real estate business or construction of farmhouses, and the manufacturing of tobacco or tobacco substitutes.

Further, as per the Press Note 3 issued in 2020, investments from entities situated in, or beneficially owned by persons resident in, countries sharing a land border with India (LBCs) require prior government approval. However, investments involving non-controlling beneficial ownership of up to 10% from such jurisdictions may be made under the automatic route, provided the applicable sectoral caps and sector-specific conditions are complied with. Additionally, the government has introduced a time-bound approval framework for LBC investments in certain specified sectors, including manufacturing of capital goods, electronic capital goods, electronic components, polysilicon and ingot-wafer.

Foreign investment falling under the government approval route requires approval before the investment is made. Applications are submitted through the Foreign Investment Facilitation Portal and examined by the relevant ministry or department. The application generally includes details relating to the investor, the investee entity, the proposed investment structure, the source of funds, beneficial ownership and compliance with applicable sector-specific conditions. Applications are generally processed within eight to 12 weeks.

All such applications are processed by DPIIT through the National Single Window System. DPIIT is responsible for processing such applications and co-ordinating with the competent authorities. Upon submission, the proposal is considered by the relevant competent authorities, such as the Ministry of Defence, the Ministry of Information and Broadcasting, the Department of Economic Affairs, etc. Applications requiring security clearance are examined by the Ministry of Home Affairs and the Ministry of External Affairs.

The FEMA framework also imposes certain post-investment compliance obligations, such as the requirement to file Form FC-GPR, Form FC-TRS and annual Foreign Liabilities and Assets returns with the RBI.

Making an investment under the government approval route without prior authorisation constitutes a violation of FEMA. Non-compliant transactions may face directions requiring the investment to be regularised, restructured or unwound, alongside potential monetary penalties or compounding proceedings before the RBI or other competent authorities. Furthermore, both the company and its officers may be subject to regulatory scrutiny and enforcement action for non-compliance with the applicable foreign investment regulations.

There is no general requirement for foreign investors to provide specific commitments as a condition for obtaining approval. However, investments falling under the government approval route may be subject to conditions or undertakings imposed by the relevant authorities on a case-by-case basis, having regard to the sector, the nature of the investment and any national security, public interest or regulatory considerations.

Such conditions may include compliance with sector-specific regulations, foreign investment limits, ownership and control requirements, national security and data protection norms, and reporting obligations.

In certain regulated sectors, including defence, telecommunications, insurance, broadcasting and financial services, additional conditions may apply pursuant to the applicable sector-specific regulatory framework.

There is no dedicated statutory appellate mechanism under the foreign investment approval regime against a decision refusing approval of a proposed foreign investment under the government approval route. Such decisions may, however, be challenged before the jurisdictional High Court through a writ petition under Article 226 of the Constitution of India.

The scope of judicial review is limited. Courts do not ordinarily reassess the commercial merits or policy considerations underlying an investment approval decision. Instead, judicial review is confined to examining the legality of the decision-making process.

A different position applies where the matter relates to an enforcement action or adjudication order under FEMA arising from an investment undertaken without the requisite approval. FEMA prescribes a statutory appellate mechanism for such adjudication orders, including appeals before the Special Director and the Appellate Tribunal. Further appeals on questions of law may be brought before the jurisdictional High Court in accordance with the provisions of FEMA.

Businesses in India may be carried on through incorporated entities such as companies and limited liability partnerships (LLPs), or through unincorporated entities such as sole proprietorships and partnership firms. Foreign investors may also establish Branch Offices (BOs), Liaison Offices (LOs) or Project Offices (POs) for limited purposes. The principal characteristics of these vehicles are as follows.

1. Sole Proprietorship

A sole proprietorship is owned and managed by a single individual and does not have a separate legal identity. The proprietor bears unlimited personal liability for all debts and obligations of the business. There is no minimum capital requirement, and the proprietor retains complete control over management and operations. Sole proprietorships are commonly used for small businesses, trading activities and consultancy services due to their ease of establishment and low compliance burden.

2. Partnership

Partnerships may be constituted either as: (a) a partnership firm under the Indian Partnership Act, 1932; or (b) an LLP under the Limited Liability Partnership Act, 2008 (“LLP Act”).

A partnership firm does not have a legal identity separate from its partners, who are jointly and severally liable for the firm’s obligations. It is generally suited for professional practices, family-owned businesses and closely held ventures where partners actively participate in management.

An LLP is a separate legal entity with perpetual succession. The liability of each partner is limited to the extent of the partner’s agreed contribution. An LLP combines the operational flexibility of a partnership with limited liability protection and is commonly used for professional service businesses, holding structures and joint ventures. There is no minimum capital requirement. An LLP must have at least two partners and two designated partners, one of whom must be resident in India.

3. Company

Companies are incorporated under the Companies Act, 2013 as either private limited companies or public limited companies.

A private limited company must have at least two shareholders and two directors, one of whom must be resident in India. Shareholders’ liability is limited to the unpaid amount on their shares. There is no minimum capital requirement. Private companies are the most common vehicle for start-ups, greenfield projects, wholly owned subsidiaries and joint ventures due to their separate legal personality, limited liability and flexibility.

A public limited company must have at least seven shareholders and three directors. Listed public companies are subject to enhanced governance, disclosure and compliance requirements, including independent director requirements. Public companies are typically used where access to public capital markets is contemplated.

The Companies Act also recognises specialised forms such as One Person Companies (OPCs), small companies and Section 8 companies established for charitable or not-for-profit purposes.

4. Branch Office, Liaison Office and Project Office

Foreign companies may establish a BO, LO or PO in India, subject to applicable RBI regulations. These offices do not constitute separate legal entities and operate as extensions of the foreign company.

An LO may undertake only liaison and communication activities and cannot carry on commercial operations. A BO may conduct specified business activities permitted under applicable regulations, while a PO may be established for execution of a specific project in India. These structures are generally used where a foreign company wishes to maintain a limited presence in India without incorporating a subsidiary.

A company is incorporated by filing an application with the jurisdictional Registrar of Companies (RoC) through the Ministry of Corporate Affairs’ integrated SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) portal. The principal steps are as follows:

• reservation of the proposed company name;
• preparation and execution of the incorporation documents, including the memorandum of association and articles of association;
• filing of the incorporation application with the RoC, together with prescribed declarations, consents, particulars of the subscribers and first directors, proof of identity and address documents, and other required information;
• scrutiny and registration of the incorporation documents by the RoC; and
• issuance of the Certificate of Incorporation and allotment of a Corporate Identity Number.

Following incorporation, the company must complete certain initial compliance requirements, including verification of its registered office, appointment of its first auditor, holding its first board meeting, maintaining statutory registers and records, and filing the prescribed declaration for commencement of business.

The incorporation process is largely electronic, and where all documents are in order and no regulatory approvals are required, incorporation is typically completed within three to seven business days from the date of filing. Delays may arise where the RoC raises queries or additional approvals are required.

Private companies are required to file annual financial statements and annual returns with the RoC within the prescribed timelines. Financial statements must be approved by the board of directors and adopted by the shareholders at the annual general meeting prior to filing.

Additionally, private companies are required to make filings with the RoC in relation to various corporate actions and changes, including:

• appointments, resignations or changes in the particulars of directors and key managerial personnel;
• changes to the company’s registered office;
• amendments to the memorandum of association or articles of association;
• increases, reductions or other changes to the company’s share capital;
• allotment of shares;
• appointment or reappointment of statutory auditors;
• creation, modification or satisfaction of charges over company assets;
• mergers, demergers and other corporate restructuring transactions; and
• changes to the company’s name or other constitutional matters.

Private companies must also maintain statutory registers and records, including registers of members and directors, records of related-party transactions and such other records as may be prescribed under the Companies Act.

Companies are further required to identify and maintain records of individuals who qualify as significant beneficial owners and to make the prescribed filings with the RoC. Companies must take reasonable steps to identify such beneficial owners and obtain the requisite declarations from them.

Failure to comply with the applicable filing, reporting and disclosure requirements may result in monetary penalties for the company and, in certain cases, for the officers in default.

India has adopted a board-centric management structure, under which the board of directors is responsible for the overall management of the company and the formulation of key strategic decisions. The board is authorised to exercise the prescribed powers on behalf of the company through resolutions passed at duly convened board meetings. It must be noted that certain matters also require shareholder approval in addition to board approval. While shareholders retain ownership rights and exercise control through general meetings, they do not participate in the day-to-day management of the company.

Conversely, an LLP does not have a board structure. Instead, it is managed by its partners in accordance with the LLP Act and the LLP agreement, which typically governs management rights, the decision-making framework, profit sharing and the allocation of responsibilities among the partners. The partners are responsible for ensuring compliance with the applicable statutory requirements.

Partnership firms as governed by the Indian Partnership Act and sole proprietorships do not have a statutorily prescribed management structure. A partnership firm is managed by its partners in accordance with the partnership deed, while a sole proprietorship is managed directly by the proprietor.

Directors and officers of Indian companies owe statutory and fiduciary duties to the company under the Companies Act. These duties include acting in good faith to promote the objects of the company; acting in accordance with the company’s articles of association; exercising their powers with due and reasonable care, skill and diligence; acting in the best interests of the company and all the stakeholders; and avoiding situations involving conflicts of interest or improper personal gain. Directors may incur civil and, in certain circumstances, criminal liability for breach of their duties, non-compliance with the Act, fraud, misstatements in public disclosures, failure to comply with regulatory requirements, or violations of other applicable laws.

As a general rule, a company is a separate legal entity and its shareholders, directors and officers are not liable for the company’s debts and obligations solely by reason of their position. Directors and officers may, however, incur personal liability where specifically imposed by statute, where they have consented to, participated in or had knowledge of a contravention or where regarded as officers in default under the Act. Personal liability may also arise under other applicable legislation.

Indian law recognises the doctrine of piercing the corporate veil, although it is applied sparingly and only in exceptional circumstances. Under this doctrine, courts may disregard the separate legal personality of a company and look beyond the corporate structure where it has been used to perpetrate fraud, evade legal obligations, defeat public policy, avoid taxes, circumvent statutory requirements, conceal the true nature of a transaction or otherwise abuse the corporate form. In such circumstances, liability may be imposed on the individuals or entities exercising control over the company. The doctrine has developed primarily through judicial decisions and is applied on a case-by-case basis.

India’s labour and employment framework comprises both central and state legislation. At the central level, the framework is primarily based on the four Labour Codes, which consolidate and rationalise numerous existing labour laws:

• Code on Wages, 2019: This consolidates laws relating to wages and bonus payments. Key features include the introduction of a floor wage, a revised definition of wages, equal remuneration for the same work, and powers of the government to fix minimum wages.
• Code on Social Security, 2020: This consolidates social security laws and seeks to extend social security benefits to employees and workers across both organised and unorganised sectors.
• Occupational Safety, Health and Working Conditions Code, 2020 (“OSH Code”): This consolidates laws relating to occupational safety, health and working conditions. It prescribes employer obligations concerning workplace safety, working hours, leave entitlements and other welfare measures.
• Industrial Relations Code, 2020 (“IR Code”): This consolidates laws relating to trade unions, industrial disputes, grievance redressal, retrenchment, lay-offs, closures, strikes and lockouts.

In addition to the Labour Codes, several other employment-related statutes remain relevant:

• Shops and Establishments Acts (“S&E Acts”): State-specific legislation governing conditions of employment in shops and commercial establishments, including working hours, leave, wages, employment of women and young persons, and establishment registration requirements.
• Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (commonly known as the POSH Act): This establishes a framework for the prevention and redressal of workplace sexual harassment, including constitution of Internal Committees and implementation of prescribed compliance measures.
• Other employment legislation: Additional statutes include the Apprentices Act, 1961, the Rights of Persons with Disabilities Act, 2016 and the Transgender Persons (Protection of Rights) Act, 2019, each of which imposes specific obligations relating to non-discrimination, equal opportunity and workplace inclusion.

The Labour Codes mandate the employer to issue an appointment letter to every employee upon appointment in the form prescribed by the appropriate government.

Employment relationships are typically governed by employment letters and employment agreements setting out the terms and conditions of employment, including the scope of work, working hours, leave entitlements, notice periods, holidays, remuneration, confidentiality obligations, non-compete/non-solicit restrictions, overtime and dispute resolution mechanisms.

Employment may be for a fixed term or an indefinite term. Fixed-term employment terminates upon expiry of the agreed term, while employment for an indefinite term continues until terminated in accordance with the terms of the employment contract and applicable law.

Working hours in India are principally governed under the OSH Code, along with the applicable state-specific S&E Acts. Under the OSH Code, workers are not permitted to work in any establishment for more than eight hours in a day or 48 hours in a week. Employers are required to obtain prior written consent of a worker and are required to pay overtime wages, generally at twice the ordinary rate of wages.

Additionally, state-specific S&E Acts may prescribe separate requirements relating to working hours, overtime and weekly rest periods. In the event of any inconsistency, employers are required to comply with the provisions that are more favourable to the employee.

Termination of individuals classified as workers under the IR Code is principally governed under the IR Code, whereas the termination of non-workers is regulated by the applicable state-specific S&E Acts, read with the terms of employment and the internal company policies. Employees may be entitled to statutory dues and benefits upon termination, including gratuity, provident fund, leave encashment and such other social security benefits as may be applicable under the Labour Codes.

In terms of the IR Code, termination of a worker for reasons other than disciplinary action, resignation, retirement, non-renewal of fixed-term contract, would ordinarily constitute retrenchment. A worker who has been in continuous service for not less than one year cannot be retrenched unless the worker is provided the prescribed notice or wages in lieu thereof, together with retrenchment compensation as prescribed under the IR Code. Further, in the case of industrial establishments employing 300 or more workers, prior permission of the appropriate government is also required to be obtained prior to any retrenchment.

There is no general statutory obligation on employers to constitute employee representative bodies or to undertake prior information sharing/consultation with employees or their representatives in relation to ordinary business or management decisions.

However, employee representation and consultation rights may arise in relation to employees who qualify as workers under the IR Code. Recognised trade unions or negotiating unions/councils are empowered to represent workers in matters relating to collective bargaining, industrial disputes and matters involving proposed changes to conditions of service.

Industrial establishments employing 100 or more workers may be required to constitute a works committee. Such committee comprises representatives of both the employer and the workers engaged in the establishment. The principal function of this committee is to promote and maintain harmonious relations between the employer and the workers. The committee is also required to consider matters of common interest or concern to both parties and endeavour to resolve any material differences of opinion arising in relation to such matters.

Direct Tax

An individual is taxable in India as a salaried employee if he or she is a resident in India (present for 182+ days in the tax year, or 60+ days in the tax year and 365+ days in the preceding four years); or he or she is a non-resident who receives salary income sourced in India and meets the threshold time limit and other conditions in the applicable treaty of his or her country of residence.

Under the default tax regime, salary income is taxed at progressive rates ranging from nil to 30%, with the highest rate applying to income exceeding INR24 lakh (approx. USD25,400 at time of writing). A surcharge is applicable at rates of 10%, 15% and 25% where total income exceeds INR50 lakh (approx. USD53,000), INR1 crore (approx. USD106,000) and INR2 crore (approx. USD212,000), respectively. Employees may alternatively opt for the old tax regime, which permits certain deductions and exemptions but is subject to different slab rates, with the highest rate of 30% applying to income exceeding INR10 lakh (approx. USD10,600). Under the old regime, the rate of surcharge remains the same, with an additional slab of surcharge at the rate of 37% for income exceeding INR5 crore (approx. USD530,000). In all cases, a health and education cess of 4% is levied on the aggregate of tax and surcharge.

Employers are required to withhold income tax from employees’ salaries and remit it to the government as an advance payment of the employees’ tax liability.

Indirect Tax

Services rendered by an employee to his or her employer in the course of or in relation to his or her employment are explicitly excluded from the definition of supply under the Central Goods and Services Tax Act, 2017. Accordingly, salaries, wages and other remuneration paid by an employer to its employees do not attract Goods and Services Tax (GST). Further, gifts not exceeding INR50,000 (approx. USD530) in value per employee per financial year are also exempt from GST.

Secondment arrangements are generally subject to closer scrutiny by GST authorities, as they may be characterised as services rendered by a foreign affiliate to the entity in India. Accordingly, the GST implications for such arrangements depend on the specific structuring and facts of each case.

Separately, services provided by directors to a company fall within the ambit of GST and are liable to tax under the reverse charge mechanism.

Direct Tax

Companies are subject to a multi-tiered tax system primarily governed by the Income Tax Act, 2025, the GST laws and state-specific levies.

1. Corporate income tax

Domestic companies may opt for a concessional corporate tax regime at the rate of approximately 25.17%, subject to the specified exemptions and deductions. Alternatively, companies claiming the available deductions and incentives are generally taxed at 25% (where turnover for FY 2024–25 does not exceed INR400 crore (approx. USD42 million)) or 30% (where turnover exceeds INR400 crore), plus applicable surcharge and cess.

Foreign companies are taxed at the rate of 35% coupled with an additional surcharge ranging from 2% to 5%.

2. Withholding tax

Tax Deducted at Source (TDS) is a mechanism where the payer deducts tax before making certain payments, ensuring tax collection at the source of income. The rate depends upon the nature of income, and it differs for residents and non-residents. The table below illustrates the TDS rates applicable to non-residents for common income types, which are relevant for foreign companies and individuals:1. Dividend: 20% + surcharge + cess

2. Interest: 20% + surcharge + cess

3. Rent: 30% + surcharge + cess

The TDS rate with a double tax avoidance agreement on all the above categories of income is between 10% and 15%, depending on the country of residence.

Indirect Tax

Businesses in India are subject to a multi-layered tax regime comprising direct taxes (income tax/corporate tax) as well as indirect taxes (GST, customs duty and excise duty), the applicability of each being contingent upon the nature and scope of the business undertaken.

1. GST

GST is a destination-based consumption tax levied on the supply of goods and services, subsuming most of the previously existing central and state indirect taxes. GST rates vary based on classification of the goods or services, with rates ranging through 0%, 5%, 12%, 18% and 40%. The liability to discharge/pay taxes to the government devolves upon the supplier.

Exports of goods and services are treated as zero-rated supplies, enabling exporters to claim refunds of input tax credits or taxes paid. Since GST is a value-added tax, businesses are generally entitled to claim input tax credit for eligible taxes paid on procurements and utilise the same against output tax liabilities.

Petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption remain outside the GST framework and continue to be subject to separate indirect tax regimes.

2. Customs duty

Customs duty is levied on import of goods into India. Certain key components of the customs duty payable are:

• Basic Customs Duty (BCD);
• Integrated Goods and Services Tax (IGST);
• Social Welfare Surcharge (SWS) levied at 10% on the aggregate of duties, taxes and cesses levied under the Customs Act, 1962;
• Agriculture Infrastructure and Development Cess (AIDC) levied on import of specified products, for the purposes of financing agriculture infrastructure and other development expenditure;
• health cess, which is levied on import of specified medical instruments to boost the domestic manufacturers of such products; and
• anti-dumping duties and safeguard duties, which are levied on import of specified goods/import from specified countries, in addition to the other duties/taxes/cesses that may be leviable.

The provisions under the Customs Act and rules and regulations framed thereunder cover the procedures, documentation, formalities and operations relating to international trade transactions, with the aim of simplifying, harmonising and standardising such transactions.

The Foreign Trade Policy (FTP) provides various export promotion schemes such as the Export Promotion Capital Goods scheme, the Export Oriented Units scheme, the Advance Authorisation scheme, and the scheme for remission of duties and taxes on exported products.

3. Excise duty

With the advent of GST, excise duty has been subsumed within GST for most goods. However, excise duty continues to survive on a limited category of goods kept outside the ambit of GST, namely petroleum crude, high-speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel, alcoholic liquor for human consumption (state excise laws) and tobacco/tobacco products, on which excise duty continues to be levied in addition to GST.

Direct Tax

The available incentives are a mix of income-based tax holidays, investment-based deductions and sector-specific benefits. The table below summarises the most common key incentives, on fulfilment of certain prescribed requirements:

Incentive:Start-up tax holiday       

Who can benefit:Eligible start-ups (companies or LLPs)       

Benefit: 100% deduction on profits for three consecutive years in a ten-year block

Incentive: GIFT City (IFSC) tax holiday

Who can benefit:Units in the International Financial Services Centre

Benefit:100% tax holiday for 20 years within a 25-year block

Incentive:Data centre services tax holiday

Who can benefit:Foreign companies using Indian data centres

Benefit:Income tax exemption until 31 March 2047

Incentive:Patent box regime

Who can benefit:Eligible taxpayers earning royalty income from patents developed and registered in India

Benefit:Preferential taxation of qualifying patent royalty income

Incentive:Scientific research

Who can benefit:Businesses incurring qualifying scientific research expenditure

Benefit:Deduction for qualifying revenue and certain capital expenditure on scientific research

Incentive: In-house R&D facility

Who can benefit:Companies with approved in-house R&D facilities

Benefit: Deduction for qualifying in-house scientific research expenditure, excluding land and building

Indirect Tax

The principal tax credit and incentive mechanisms available to businesses in India under the indirect tax regime may be summarised as follows:

• Input tax credit under GST: This is a credit mechanism whereby a registered person is entitled to avail themselves of credit for GST paid on inputs, input services and capital goods procured in the course or furtherance of business, and to utilise such credit towards discharge of output tax liability on outward supplies. Certain categories of inward supplies are statutorily excluded from the purview of input tax credit.
• Central value-added tax: Credit under excise law is allowed in respect of excise duty paid on inputs, capital goods and service tax paid on input services, to utilise such credit towards discharge of excise duty payable on manufactured goods which are not subsumed under the GST regime.
• Credit/incentive mechanisms under customs law: Customs law read with the FTP provides for certain export promotion schemes designed to neutralise the incidence of customs duty on inputs used in goods meant for export, including:
1. the Advance Authorisation scheme;
2. the Export Promotion Capital Goods scheme;
3. the Duty Drawback scheme;
4. preferential trade agreements (PTAs), free trade agreements (FTAs), etc with various countries to eliminate or reduce customs tariff and non-tariff barriers; and
5. to promote international and domestic trade and create competitiveness, India provides fiscal incentives by allowing companies to set up units in Special Economic Zones, Free Trade Zones, Export Oriented Units, software technology parks or the GIFT International Financial Services Centre, or for undertaking manufacture and other operations in customs warehouses, etc, along with required infrastructure, utilities and services in such areas.

Direct Tax

Under Indian tax law, tax consolidation for corporate groups (where a parent and its subsidiaries are treated as a single taxable entity) is not permitted. Each company within a group is treated as a separate legal entity and must independently file its tax returns and meet its tax obligations. This means that the losses of one group company cannot generally be offset against the profits of another group company.

Indirect Tax

The position under GST law is similar. Each legal entity is required to be assessed and taxed independently.

Thin capitalisation rules (interest deduction limitation rules) are applicable in India, aligning with OECD BEPS Action Plan 4 to prevent base erosion through excessive interest deductions on debt from related parties.

They apply where an Indian company or a permanent establishment of a foreign company in India incurs deductible interest or similar expenditure exceeding INR1 crore (approx. USD106,000) payable to a non-resident associated enterprise (AE). The deduction for such interest paid to AEs is limited to the lower of (i) 30% of the company’s EBITDA and (ii) the total interest paid or payable to AEs.

India’s income tax laws provide for transfer pricing regulations applicable to international transactions between AEs. Transfer pricing regulations also apply to certain specified domestic transactions.

The Indian tax authorities are empowered to adjust income arising from such transactions where the price charged is not at arm’s length, as determined under the prescribed methods. Taxpayers are required to maintain appropriate documentation to substantiate the arm’s length price. Taxpayers may also enter into unilateral or bilateral Advance Pricing Agreements and, in specified cases, opt for safe harbour provisions, and are required to maintain appropriate documentation to establish the adequacy of arm’s length pricing.

Further, with effect from 1 April 2025, taxpayers have been given the option to opt for a block transfer pricing assessment regime, subject to satisfaction of the prescribed conditions.

While transfer pricing is primarily an income tax concept, a comparable mechanism exists under customs law through the Special Valuation Branch (SVB). Where goods are imported from related parties, customs authorities may examine whether such relationship has influenced the declared transaction value of the imported goods. The SVB reviews the nature of the relationship and the circumstances of sale, and determines whether the declared value is acceptable for customs purposes or requires adjustment.

Direct Tax

India has a comprehensive anti-evasion framework comprising both general and specific anti-avoidance provisions.

• The General Anti-Avoidance Rule (GAAR) targets impermissible avoidance arrangements where the main purpose is to obtain a tax benefit. Such arrangements are carried out in a manner not normally employed for bona fide purposes, lack commercial substance (in whole or part) and create rights/obligations not ordinarily arising at arm’s length, resulting in misuse/abuse of tax provisions.
• Specific Anti-Avoidance Rules (SAAR) address targeted tax avoidance strategies and often take precedence or complement GAAR, such as:
1. thin capitalisation rules, which limit interest deductions on borrowings from related non-residents;
2. transfer pricing rules, which require international transactions and specified domestic transactions between AEs to be conducted at arm’s length;
3. Place of Effective Management provisions, which determine residency of foreign companies if key management and commercial decisions are made in India; and
4. Significant Economic Presence provisions, which seek to tax certain digital and business activities undertaken by non-residents.
• Additional anti-evasion measures include the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which prescribes extensive reporting and disclosure requirements and stringent penalties and prosecution for wilful tax evasion, concealment and misreporting.

Indirect Tax

Each indirect tax law in India prescribes its own compliance obligations and associated penalty framework. There is no unified anti-evasion regime that operates uniformly across the various indirect tax statutes.

India’s tariff regime is principally governed by the Customs Act, 1962 and the Customs Tariff Act, 1975. It follows a multi-layered duty structure comprising BCD, IGST, SWS, AIDC and, where applicable, anti-dumping and safeguard duties.

The principal levies are as follows:

• BCD: Generally levied at 10% of the value of the goods.
• IGST: Levied at the applicable rate of GST on supplies made in India.
• SWS: Generally levied at 10% of the aggregate of levies under the Customs Act.
• AIDC: Levied on specified imported products to finance agricultural infrastructure and other development expenditure.
• Health cess: Levied on import of specified medical devices and equipment (generally at 5%) with a view to promoting domestic manufacturing.
• Anti-dumping and safeguard duties: Levied on specified goods and imports from specified countries to address dumping, import surges or injury to domestic industry. These duties are imposed in addition to other applicable duties, taxes and cesses.

Of the above levies, only IGST is generally creditable under the GST framework and may be claimed as input tax credit by eligible importers. The remaining levies ordinarily constitute a cost to the importer.

To facilitate trade and reduce tariff and non-tariff barriers, India has entered into various PTAs and FTAs. Recent and ongoing negotiations include arrangements involving the UK, the EU, New Zealand and Oman, among others.

Combinations are governed by Sections 5 and 6 of the Competition Act, 2002 read with the Competition Commission of India (Combinations) Regulations, 2024, the Competition (Criteria for Exemption of Combinations) Rules, 2024 (“Exemption Rules”) and any other notifications, rules and regulations issued by the Government of India (GoI) and/or the Competition Commission of India (CCI) from time to time.

A “combination” means an acquisition of control, shares, voting rights or assets, or a merger or amalgamation or formation of a joint venture, that exceeds the financial thresholds (based on asset value and turnover of the parties or group) or the deal value threshold prescribed under Section 5 of the Competition Act. If any of the aforesaid thresholds are met, the transaction will qualify as a combination and require the approval of the CCI, unless the transaction qualifies for a specific exemption provided under the Exemption Rules or the notifications/rules issued by the GoI.

Target Exemption/De Minimis Exemption

Under the Competition (Minimum Value of Assets or Turnover) Rules, 2024, transactions are exempt from requiring CCI approval if the target company’s consolidated asset value in India does not exceed INR450 crore (approx. USD47.7 million) or its turnover does not exceed INR1,250 crore (approx. USD132 million). However, this de minimis exemption is not applicable if the deal value threshold is breached.

Once a transaction qualifies as a combination and requires approval from the CCI, the parties must file a notice with the CCI. This notice may be filed at any time after the execution of definitive or binding documents. Depending on the nature and extent of overlaps between the parties in India, the notice may be filed in any of the following forms:

• Green Channel Form: Can only be filed if there are no horizontal, vertical or complementary overlaps between the activities of the parties in India. Upon filing and receiving an acknowledgement, the combination is deemed automatically approved.
• Form I (short form).
• Form II (long form).

If there are overlaps between the activities of the parties in India, parties must file either Form I or a Form II notice. A Form II notice is preferred where the parties are: (a) competitors and have a combined market share of more than 15%; or (b) active in vertically linked markets and the combined or individual market share is more than 25%.

Upon filing, the CCI has 30 calendar days to form its prima facie view, failing which the combination is deemed approved. This timeline can be extended if the information submitted in the notice is incomplete or if the CCI requires additional information for its review.

The Indian merger control regime is mandatory and suspensory; therefore, parties cannot consummate the combination or any part thereof prior to receiving approval from the CCI or until 150 days from the date of notification of the combination have elapsed. If no decision is taken by the CCI within the said period, the combination will be deemed approved.

If a notifying party consummates a combination or any part thereof without seeking approval from the CCI, the CCI has the power to: (a) impose a penalty which can extend up to 1% of the combined asset value or turnover or deal value of the combination (whichever is higher) on the notifying party; and/or (b) require the notifying party to file a notice for such combination.

The Competition Act seeks to prevent practices that have an appreciable adverse effect on competition (AAEC) in India.

Section 3 prohibits agreements which cause or are likely to cause an AAEC in India, and such agreements are considered void. These include agreements between competitors (horizontal agreements), enterprises at different levels of the production chain (vertical agreements) and other agreements that do not fall within either category but may nevertheless cause or are likely to cause an AAEC in India.

Horizontal Agreements

Section 3(3) identifies four types of horizontal agreements (ie, agreements between competitors), also known as cartel agreements, namely: (a) price-fixing agreements; (b) agreements to limit or control production, supply or markets; (c) market-sharing agreements; and (d) bid-rigging agreements. Such agreements are presumed to cause an AAEC in India. This presumption extends to enterprises that facilitate cartels or engage in hub-and-spoke cartels.

Vertical and Other Agreements

Section 3(4), among other things, deals with vertical agreements and provides a non-exhaustive list of such agreements, including: (a) tie-in arrangements; (b) exclusive supply agreements; (c) exclusive distribution agreements, including territorial allocation arrangements; (d) refusal to deal; and (e) resale price maintenance. These agreements are prohibited where they cause, or are likely to cause, an AAEC on competition in India. In addition to horizontal and vertical agreements, other forms of agreements may also be examined under Section 3(4) where they cause, or are likely to cause, an AAEC in India.

The regulatory framework grants the CCI explicit extraterritorial jurisdiction. This means that it has the power to investigate and penalise abuse of dominant position and anti-competitive agreements formed or operating outside of India, provided that they cause, or are likely to cause, an AAEC in India.

Section 4 of the Competition Act prohibits an enterprise or a group from abusing its dominant position. To determine whether an enterprise is dominant, the CCI considers various factors, including the enterprise’s market share, size and resources, its economic power and the competitive conditions in the relevant market. Market share is one of the important factors in this assessment. While a market share of 50% or more may indicate dominance, an enterprise with a lower market share may also be found to be dominant depending on the facts and circumstances of the case.

Section 4(2) lists certain practices that may amount to abuse of dominant position when carried out by a dominant enterprise or group. These include imposing unfair or discriminatory prices or conditions, limiting production or technical development, denying market access, leveraging dominance in one market to enter or protect another market, engaging in tie-in arrangements, and other exclusionary or exploitative conduct.

The Supreme Court in Competition Commission of India v Schott Glass India Pvt. Ltd., Civil Appeal No. 5843 of 2014, underscored the importance of an effects-based analysis in cases involving allegations of abuse of dominant position. The Court clarified that the conduct of a dominant enterprise should be assessed based on its actual or likely effects on competition and not merely on its form. The Court also recognised that objective and legitimate business justifications for the impugned conduct are relevant considerations in determining whether the conduct amounts to an abuse of dominance.

Patent Protection

Governed by the Patents Act, 1970, a patent is a statutory right granted for an invention that is novel, involves an inventive step and is capable of industrial application. Patent protection confers upon the patentee the exclusive right to prevent third parties from making, using, selling, offering for sale or importing the patented invention without authorisation. Patent rights are territorial and enforceable only within India.

Patent protection is available for a term of 20 years from the filing date of the application, subject to payment of prescribed renewal fees. Upon expiry, the invention enters the public domain. Certain subject matter is excluded from patentability under Sections 3 and 4 of the Patents Act, including inventions contrary to public order or morality, traditional knowledge and specified biological processes.

Registration Process

India follows a first-to-file system. A patent application may be filed by the inventor, assignee or legal representative with either a provisional or complete specification.

Applications are ordinarily published after 18 months from the filing or priority date, unless early publication is requested. Any person may file a pre-grant opposition after publication and before grant. Patent examination is initiated only upon filing a request for examination within the prescribed period. Following examination, the Patent Office issues a First Examination Report setting out objections, if any, which must be addressed by the applicant. Upon satisfaction of the statutory requirements, the patent may be granted. Post-grant opposition proceedings may also be initiated on prescribed grounds.

Enforcement and Remedies

Patent rights are enforced through civil proceedings. Infringement generally occurs where a third party, without authorisation, makes, uses, sells, offers for sale or imports a patented product or process.

Proceedings may be instituted before the competent District Court or High Court having jurisdiction. The principal remedies available under the Patents Act include interim and permanent injunctions, damages or an account of profits, recovery of costs, and seizure, forfeiture or destruction of infringing goods and materials predominantly used in their manufacture.

Trade Mark Protection

Trade mark protection in India is governed by the Trade Marks Act, 1999. Under the Trade Marks Act, a trade mark is any mark capable of graphical representation and of distinguishing the goods or services of one person from those of another. Protection extends to words, names, logos, labels, devices, signatures, packaging, shapes, colours, sound marks, numerals and combinations thereof.

Registration confers an exclusive right to use the trade mark in relation to the registered goods or services and provides statutory remedies against unauthorised use. However, registration is not mandatory, as unregistered marks may also be protected through passing off actions. Indian law also recognises prior user rights, transborder reputation and protection of well-known trade marks.

A registered trade mark is protected for a period of ten years from the date of application and may be renewed indefinitely for successive periods of ten years.

Registration Process

India follows the Nice Classification system and permits multi-class applications. The registration process generally involves filing an application, examination by the Trade Marks Registry, publication in the Trade Marks Journal, opposition proceedings (if any) and registration.

The application is examined for compliance with statutory requirements and potential conflicts with earlier marks. Following publication, any person may oppose registration within four months. If no opposition is filed, or if opposition proceedings are successfully concluded, the Registrar grants registration and issues a registration certificate. India is also a signatory to the Madrid Protocol, enabling international registration through a centralised filing system.

Enforcement and Remedies

Trade mark infringement generally arises where a registered trade mark or a deceptively similar mark is used without authorisation in a manner likely to cause confusion or deception.

Trade mark rights may be enforced through civil and criminal proceedings. Registered proprietors may institute infringement actions, while proprietors of unregistered marks may pursue passing off claims.

Civil remedies include interim and permanent injunctions; damages or an account of profits; delivery up, seizure or destruction of infringing goods; and recovery of costs. Certain trade mark offences, including falsification of trade marks and dealing in counterfeit goods, may also attract criminal liability, including imprisonment and fines. Trade mark owners may additionally utilise customs recordation and border enforcement mechanisms to prevent the import of counterfeit goods.

Design Protection

Design protection in India is governed by the Designs Act, 2000. A design refers to the features of shape, configuration, pattern, ornamentation or composition of lines or colours applied to an article which, in the finished article, appeal to and are judged solely by the eye.

To qualify for protection, a design must be novel and original and capable of industrial application. Protection is not available for purely functional features, designs previously disclosed to the public, trade marks, artistic works protected under copyright law or subject matter contrary to public order or morality.

A registered design is protected for an initial term of ten years from the date of registration and may be extended by a further period of five years.

Registration Process

Applications for design registration are filed with the Controller General of Patents, Designs and Trade Marks. Prior to filing, applicants typically undertake a design search to assess novelty. The design is classified under the Locarno Classification system, and the application is filed together with representations of the design and prescribed supporting documents.

The Designs Office examines the application for procedural compliance and registrability, including novelty, originality and proper classification. Where objections are raised, the applicant is required to respond within the prescribed period. Upon acceptance, the design is registered, a registration certificate is issued and the registration is published in the Designs Journal.

Enforcement and Remedies

Unauthorised application of a registered design, or any fraudulent or obvious imitation thereof, to articles within the registered class constitutes piracy of a design under the Designs Act. Infringement also extends to the import, sale, publication or commercial dealing in infringing articles.

Design rights are primarily enforced through civil proceedings before the competent District Court or High Court. To succeed in an infringement action, the proprietor must generally establish valid registration and unauthorised copying or imitation of the registered design.

Available remedies include interim and permanent injunctions, damages or an account of profits, seizure or destruction of infringing goods, recovery of litigation costs and border enforcement measures under the Intellectual Property Rights (Imported Goods) Enforcement Rules, 2007 (“Enforcement Rules”).

Copyright Protection

Copyright protection in India is governed by the Copyright Act, 1957. Copyright subsists in original literary, dramatic, musical and artistic works, cinematograph films and sound recordings.

Copyright arises automatically upon creation of an original work and does not require registration. However, registration serves as prima facie evidence of ownership and is commonly relied upon in enforcement proceedings.

The term of protection varies depending on the category of work, although for most literary, dramatic, musical and artistic works, copyright subsists for the lifetime of the author and 60 years thereafter. India is also a signatory to key international copyright treaties, including the Berne Convention.

Registration Process

Copyright registration is administered by the Copyright Office. The applicant is required to file the prescribed application together with details of the work and supporting documents, including copies of the work and proof of ownership, where applicable.

The Copyright Office examines the application for compliance with statutory requirements. Details of the application are published, following which a prescribed period is provided for third-party objections. In the absence of objections, or upon their resolution, the Copyright Office issues a registration certificate.

Enforcement and Remedies

Copyright infringement occurs where a person, without authorisation, undertakes acts falling within the exclusive rights of the copyright owner, including reproduction, distribution, communication to the public, sale, importation or commercial exploitation of infringing copies.

Copyright may be enforced through civil and criminal proceedings. Civil remedies include interim and permanent injunctions, damages or an account of profits, seizure and destruction of infringing material, and recovery of litigation costs. Criminal infringement may attract imprisonment and monetary penalties under the Copyright Act.

Rights holders may also utilise border enforcement measures under the Enforcement Rules. In cases of online infringement, copyright owners frequently rely on intermediary takedown mechanisms, notice-and-takedown procedures and court-directed blocking orders.

Protection of Other Forms of Intellectual Property

India’s intellectual property framework provides protection to several additional categories of intellectual property through dedicated legislation and common-law principles. These include the Geographical Indications of Goods (Registration and Protection) Act, 1999, the Protection of Plant Varieties and Farmers’ Rights Act, 2001, the Semiconductor Integrated Circuits Layout Design Act, 2000 and the protection of biological resources and traditional knowledge under the Biological Diversity Act, 2002.

Software Programs and Databases

Computer software is primarily protected as a literary work under the Copyright Act. In limited circumstances, software-related inventions demonstrating a technical effect or technical contribution may also qualify for patent protection. Databases do not enjoy sui generis protection in India but may be protected under copyright law if they satisfy the applicable requirements.

Trade Secrets and Confidential Information

Trade secrets and confidential information are not governed by any standalone legislation in India and are protected through contractual arrangements and common-law principles relating to breach of confidence and fiduciary obligations. Further, the right to copyright is specifically preserved against any breach of trust or confidence under Section 16 of the Copyright Act. In practice, protection is typically strengthened through contractual confidentiality obligations and specific covenants.

Applicable Regulations

India’s data protection framework is rooted in the decision of the Supreme Court in Justice K.S. Puttaswamy (Retd.) v Union of India (2017), which recognised the right to privacy as a fundamental right under Article 21 of the Constitution. Any restriction on privacy must satisfy the tests of legality, legitimate aim and proportionality.

The principal legislation governing personal data protection is the Digital Personal Data Protection Act, 2023 (“DPDP Act”), together with the Digital Personal Data Protection Rules, 2025 (“DPDP Rules”). Pending full implementation of the DPDP Framework, certain provisions of the Information Technology Act, 2000 (“IT Act”) and the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 (“SPDI Rules”) remain relevant.

Digital Personal Data Protection Framework

The DPDP Act applies to digital personal data, including personal data collected offline and subsequently digitised. It regulates the processing of personal data by Data Fiduciaries and grants various rights to Data Principals.

Processing of personal data under the DPDP Framework is permitted either on the basis of the Data Principal’s consent or for specified legitimate uses, including compliance with law, employment-related purposes, public health emergencies, certain governmental functions, etc. Data Fiduciaries are required to implement reasonable security safeguards, establish grievance redressal mechanisms, ensure that personal data is processed only for the purpose for which consent has been obtained, facilitate the exercise of Data Principal rights and notify personal data breaches to the Data Protection Board of India (DPBI) and affected Data Principals in the prescribed manner.

The DPDP Act also recognises the concept of Significant Data Fiduciaries (SDFs), which are subject to enhanced compliance obligations, including audits and impact assessments. Data Principals are granted rights relating to access, correction, erasure, withdrawal of consent, grievance redressal and nomination. Non-compliance may attract significant monetary penalties.

The DPDP Rules operationalise the statutory framework by prescribing requirements relating to consent notices, security safeguards, breach notifications, processing of children’s data and the functioning of the DPBI.

Information Technology Framework

Until the DPDP Framework is fully operationalised, the IT Act and SPDI Rules continue to apply in certain respects. Section 43A of the IT Act imposes liability for failure to implement reasonable security practices, while Section 72A prescribes penalties for unlawful disclosure of personal information.

The SPDI Rules regulate the collection, use, retention, transfer and disclosure of sensitive personal data. The framework requires consent-based processing, purpose limitation, implementation of reasonable security practices and appointment of a grievance officer.

In addition, sector-specific regulators in areas such as financial services, insurance, securities and telecommunications continue to prescribe separate requirements relating to cybersecurity, operational resilience and data governance.

Extraterritorial Application

The DPDP Act applies not only to entities within India but also to entities incorporated outside India that process the personal data of individuals located in India in connection with the offering of goods or services to them. Consequently, any organisation offering goods or services in India or processing data of individuals in India falls within the scope of the framework, regardless of where the organisation is located.

However, Section 17 of the DPDP Act contains various carve-outs, with one carve-out being of particular relevance to India’s significant technology and business process outsourcing sector. Section 17(1)(d) exempts from the core obligations the processing of personal data of individuals located outside India, where such processing is carried out within India by an Indian entity pursuant to a contract with a person outside India.

Cross-Border Transfer Under the DPDP Framework

One of the more structurally distinctive features of the DPDP Framework is its approach to cross-border data transfers. Section 16 of the DPDP Act and Rule 15 of the DPDP Rules together adopt a negative list model, under which personal data may be transferred by a Data Fiduciary to any country or territory in the world, unless the Central Government has expressly restricted transfers to that jurisdiction. However, as of the date of writing, no countries have been placed on the restricted list.

Section 16 and the cross-border transfer obligations under Rule 15 become fully operational only from 14 May 2027, meaning that organisations have until then to map their global data flows, restructure international transfer arrangements and renegotiate contracts with overseas recipients.

Further, where sector-specific laws or regulations impose stricter transfer restrictions or localisation requirements, those requirements continue to apply alongside the DPDP Framework. Consequently, localisation mandates imposed by sectoral regulators continue to operate independently of the general transfer regime.

The Data Protection Board

The DPBI, established under the DPDP Act, is the principal authority responsible for enforcement of India’s data protection framework. The DPBI functions as a quasi-judicial body with powers to investigate non-compliance and enforce obligations under the DPDP Framework.

The DPBI’s Mandate and Powers

The DPBI is empowered to inquire into personal data breaches and instances of non-compliance under the DPDP Framework, on the basis of breach notifications, complaints, government references or court directions. Following such inquiries, the DPBI may pass appropriate orders, including directions requiring mitigation, remedial measures or compliance actions, and adjudicate violations under the DPDP framework.

In exercising its functions, the DPBI possesses powers similar to those of a civil court for the purposes of conducting inquiries, including summoning, requiring production of documents and examining evidence. It may also accept voluntary undertakings from regulated entities as part of enforcement proceedings.

The DPBI has significant enforcement powers, including the authority to impose financial penalties of up to INR250 crore (approx. USD26.5 million) for specified contraventions under the DPDP Act. The enforcement regime is civil in nature and does not contemplate criminal penalties.

Appeal Mechanism

Appeals from orders of the DPBI lie before the Telecom Disputes Settlement and Appellate Tribunal within 60 days, with further appeals available before the High Court and the Supreme Court.

Operational Reality

Although the DPBI has been formally constituted under the DPDP Act, it is not yet fully operational. As of April 2026, appointments to certain leadership positions remained pending.

India has, over the past year, demonstrated a consistent legislative and regulatory trajectory characterised by a dual policy objective: (i) facilitating ease of doing business through structural simplification and rationalisation of legacy frameworks; and (ii) simultaneously strengthening governance, transparency and compliance obligations across sectors.

Further legislative and regulatory developments are expected to continue this trend. In particular, the Corporate Laws (Amendment) Bill, 2026 signals an intent to recalibrate India’s corporate governance architecture. This trend assumes heightened significance in the current global environment, characterised by geopolitical volatility, fragmented supply chains, elevated input costs and broader macroeconomic uncertainty. In such a context, regulatory systems are expected to increasingly balance investor protection and systemic stability.

The implementation of the Labour Codes and the DPDP Framework marks a significant regulatory transition. As both regimes move through the implementation phase, the focus is expected to remain on practical compliance, enforcement and operational integration. The coming year is likely to be shaped by how organisations adapt their internal processes and systems to meet these evolving regulatory requirements.

Overall, while no apparent legislative overhaul is currently underway, India is clearly moving towards a more digitised, compliance-intensive and structurally efficient regulatory environment with a particular emphasis on ease of doing business.