India’s Investment Boom

India has firmly established itself as a premier global investment destination, underpinned by a series of progressive economic reforms, a thriving domestic market and substantial infrastructure advancements. The year 2024 was particularly noteworthy, witnessing a record-breaking 2,186 deals with a total value of USD116 billion. This represented a remarkable 76% surge in deal values and a 33% rise in deal volumes compared to the previous year. Mergers and acquisitions reached unprecedented levels, with 683 deals amounting to USD44.1 billion, setting a new benchmark for deal volume. The private equity sector also flourished, recording 1,298 deals valued at USD30.9 billion – a 24% increase in volume and a 13% rise in value year-on-year.

Looking ahead to 2025, the momentum is expected to continue, with a pronounced uptick in both strategic and financial investments. This growth is largely fuelled by India’s ambitious energy transition targets and rapid digitalisation. Venture capital and private equity investments are thriving, particularly within India’s vibrant start-up ecosystem, now recognised as one of the largest in the world. The foreign direct investment (FDI) regime remains highly liberalised, with most sectors – including manufacturing, infrastructure, fintech and renewable energy – permitting 100% foreign ownership under the automatic route.

The government has also rolled out targeted investment policies in key sectors such as semiconductors, defence, pharmaceuticals, and artificial intelligence, further integrating India into the global economy. The production-linked incentive (PLI) schemes continue to transform the industrial landscape, offering generous fiscal incentives across 14 high-growth sectors.

Background and Business Environment

India’s business environment in 2025 is characterised by robust economic recovery, comprehensive regulatory reforms and a more open market. The dispute resolution framework has been significantly strengthened, with the adoption of alternative dispute resolution mechanisms, streamlined insolvency processes and reforms that favour arbitration. The Insolvency and Bankruptcy Code (IBC) has notably improved asset recovery rates, making the resolution process more efficient and attractive for investors. India’s arbitration ecosystem is evolving into a global hub, supported by international investment treaties and a judiciary that is increasingly supportive of enforcement.

The financial markets are undergoing rapid modernisation, spurred by the influx of foreign institutional investors (FIIs) and foreign portfolio investors (FPIs). Regulatory liberalisation has made it easier for foreign capital to enter the market, further enhancing India’s global standing. Recent reforms affecting non-convertible debentures (NCDs), external commercial borrowings (ECBs) and venture capital funds have broadened access to capital for businesses. The introduction of the Digital Rupee and advanced fintech regulations are also strengthening the competitiveness of India’s financial sector.

India’s political stability and economic resilience, combined with a vast and growing middle class, continue to drive strong investor interest. The government’s ongoing focus on infrastructure development through the National Infrastructure Pipeline (NIP) and ambitious digital transformation initiatives is accelerating growth and creating a wealth of opportunities for investors.

The regulatory environment is set to play a pivotal role in shaping the investment climate in 2025. Continued reforms and initiatives aimed at improving the ease of doing business, coupled with investor-friendly policies, are expected to further boost private equity and venture capital activity. In 2025, India is not merely an emerging market – it is a powerhouse of investment opportunities. With its dynamic economy, pro-business policies, and steadfast commitment to growth, India stands out as the most compelling destination for global investors seeking sustainable, high-return opportunities.

Trade Law and Trade Remedies

Legal framework

The Foreign Trade (Development and Regulation) Act, 1992 (“FTDR Act”) empowers the Central Government to regulate, restrict, and promote the development of foreign trade in India. The Directorate General of Foreign Trade (DGFT) serves as the primary administrative authority under the Act and issues trade-related notifications, licences and clarifications.

In addition, the Customs Act, 1962 (“Customs Act”) deals with the levying and collection of customs duties, import/export procedures, clearance of goods, enforcement against smuggling and adjudication. It also lays down the framework for search, seizure, confiscation and penalties. While the Customs Tariff Act, 1975 (“Customs Tariff Act”) prescribes the classification and applicable duties for imported/exported goods.

Both the Customs Act and the Customs Tariff Act are supplemented by a comprehensive set of delegated legislation, including rules and regulations governing valuation, classification, appeals, advance rulings, bonded warehousing, export incentives and the procedural aspects of import/export operations.

Trade remedies and enforcement

India’s use of trade remedies – especially anti-dumping, countervailing and safeguard measures – has expanded significantly in recent years, particularly against China, Vietnam, Korea, Taiwan, Malaysia, and other low-cost exporting jurisdictions. Measures have been taken on products such as solar cells, tempered glass, coated steel, nylon filament yarn, aluminium foil, vitrified tiles and stainless-steel flat products.

Anti-dumping measures

India maintains an active anti-dumping regime and routinely initiates investigations to counter injurious dumping. These measures are invoked when goods are exported to India at prices lower than their normal value (ie, domestic prices in the exporting country), and such dumping causes or threatens to cause material injury to the Indian domestic industry. Anti-dumping duties are governed by Section 9A of the Customs Tariff Act read with the Customs Tariff (Identification, Assessment and Collection of Anti-Dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.

The investigation and procedural steps are as follows.

• The Directorate General of Trade Remedies (DGTR) initiates an investigation upon receiving a duly substantiated application from a domestic business, establishing prima facie evidence of dumping, injury, and causal link.
• A public notice of initiation is issued, inviting all interested parties to participate and submit relevant information within stipulated timelines.
• The DGTR circulates questionnaires to known exporters, producers, and importers to gather data.
• The authority conducts a detailed examination of the:
1. normal value (price in the exporting country);
2. export price (price at which goods enter India);
3. dumping margin (difference between the above);
4. injury to domestic industry;
5. causal link between dumping and injury; and
6. other relevant factors.
• In some cases, verification visits may be conducted at the premises of foreign exporters or domestic producers to confirm data submitted.
• Parties are afforded the opportunity to present their views in oral hearings.

The duration (and review) of anti-dumping measures is as follows.

• Initial tenure: anti-dumping duties are valid for five years from the date of imposition.
• Mid-term review: initiated to re-examine duty parameters due to significant changes in market conditions or cost structures.
• Sunset review: conducted before expiry to assess the likelihood of continued dumping and injury and the review may result in extension of imposition of the anti-dumping duties.
• New shipper review: permits new exporters, who were not party to the original investigation, to obtain separate duty rates.

Subsidies and countervailing measures

Countervailing actions are governed by Sections 9, 9B and 9C of the Customs Tariff Act and the Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules 1995, enacted to determine the manner in which the subsidised articles liable for countervailing duty are to be identified, the manner in which the subsidy provided is to be determined and the manner in which the duty is to be collected and assessed under the Act.

Safeguard measures

The domestic legislation to implement the safeguard measures has been enacted under Section 8B of the Customs Tariff Act read with the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997. While the procedural steps largely mirror those for anti-dumping investigations, safeguard measures differ in that they address fair but injurious import surges and must be imposed on a non-discriminatory basis.

Scope of review of trade remedy measures

Appeals against the imposition of safeguarding, countervailing and anti-dumping duties are governed by Section 9C of the Customs Tariff Act, 1975. Following the Finance Act, 2023, the provision now covers any “determination or review” by the DGTR, broadening its earlier scope, which was limited to final orders. The limitation period for filing such appeals is 90 days from the date of determination or review. These appeals lie before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), subject to a pecuniary cap of INR5 million as prescribed under Section 129(4)(c) of the Customs Act, 1962.

Rules of origin and global developments

Globally, there is growing regulatory focus on preventing circumvention of trade remedies through trans-shipment and misdeclaration of origin, making Rules of Origin (RoO) a critical point of enforcement.

In India, the Customs Administration of Rules of Origin under Trade Agreements Rules, 2020 were introduced to operationalise RoO provisions in free trade agreements. They empower customs officials to verify claims, seek documentary evidence, and reject preferential treatment where origin thresholds, such as value addition norms or substantial transformation criteria, are not met. This ensures that duty concessions are limited to genuinely originating goods.

Data - legal framework

India’s data privacy regime is currently governed by the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011 (“SPDI Rules”), issued under the Information Technology Act, 2000 (“IT Act”). The SPDI Rules will be replaced by a principled legislation, the Digital Personal Data Protection Act, 2023 (“DPDP Act”), along with the draft Digital Personal Data Protection Rules, 2025 (“Draft Rules”), issued under the DPDP Act (collectively, “DPDP Framework”).

Geographical scope

The DPDP Framework will apply to the processing of “personal data”:

• within India; and
• outside India, if such processing involves the offering goods or services to individuals in India.

Personal data is defined as “any data about an individual who is identifiable by or in relation to such data”.

Consent requirement

Personal data can only be processed with the explicit consent of the data principal. Grounds such as contractual necessity and legitimate interests are not recognised in the DPDP Framework. The consent provided by the data principal should be free, specific, informed, unconditional and unambiguous, and should signify an agreement to the processing of their personal data with a clear affirmative action.

Data retention

Data fiduciaries – defined as “any person who alone or in conjunction with other persons determines the purpose and means of processing of personal data” – are required to erase the personal data of the data principal under the following circumstances:

1.       if the purpose for which it was collected is no longer being served; or

2.       if the data principal withdraws their consent for the processing of their personal data; or

3.       when data fiduciaries receive a request for erasure of the personal data of a data principal.

The purpose under (1) is considered no longer served if the data principal (a) does not approach the data fiduciary for the specified purpose, or (b) does not exercise any of their rights related to the data processing for a prescribed period. The Draft Rules propose a “prescribed period” under (a) and (b) of three years for social media, gaming and e-commerce companies.

Data Protection Board of India (DPBI)

The DPBI is a quasi-judicial body that will be established under the DPDP Act. The primary role of the DPBI will be to oversee compliance with the DPDP Framework, address complaints related to personal data breaches and impose penalties for non-compliance. The DPBI is empowered to investigate data breaches, direct urgent remedial or mitigation measures, and adjudicate disputes between data principals and data fiduciaries. The DPBI is empowered to impose monetary penalties ranging from INR50 million (approximately USD6 million) to INR250 million (approximately USD29 million).

Upcoming regulatory developments

The Indian Parliament enacted the DPDP Act on 11 August 2023, but the Ministry of Electronics and Information Technology (“MeitY”) is yet to notify it. The DPDP Act is likely to be enforced in phases as MeitY has the power to notify different provisions of the DPDP Act at different times. Public consultations on the Draft Rules concluded recently. Upon finalising the Draft Rules, MeitY is expected to notify the DPDP Framework.

Tax laws in India

Taxes applicable to businesses

Companies in India are taxed under the Income Tax Act, 1961, with rates depending on turnover, entity type, and chosen tax regime.

Domestic companies face:

• a 5% tax if turnover does not exceed INR4 billion in FY 2023–24 (otherwise, 30%);
• a surcharge of 7% (if income over is INR10 million) or 12% (if over INR100 million);
• a 4% health and education cess;
• a concessional 22% rate available without certain exemptions (10% surcharge); and
• a minimum alternate tax (MAT) of 15%, which applies unless the 22% regime is chosen.

Domestic partnerships face:

• a 30% tax plus surcharge (12% if income exceeds INR10 million) and a cess; and
• a MAT applies.

Foreign companies face:

• a 35% tax rate plus a surcharge (2% on income over INR10 million, 5% over INR100 million) and a 4% cess from 1 April 2024; and
• MAT does not apply if there is no Indian permanent establishment under a tax treaty.

Withholding tax is levied at 2–10% for residents, 20% for non-residents (5% in some cases), with treaty benefits available.

Buyback tax was abolished from 1 October 2024 onwards; buyback proceeds are now taxed as dividends.

Tax consolidation is not allowed; each entity is taxed separately.

Indirect taxes in India include:

• a goods and services tax (GST); and
• customs duties on imports, with concessions for imports from countries with which India has preferential/free trade agreements.

Tax obligations relating to employment

Employer responsibilities include:

• tax to be deducted at source on employee salaries that must be deposited with the government of India, regardless of the tax regime chosen by the employee; and
• the employer undertaking to make Employees’ Provident Fund contributions at 12% and Employees’ State Insurance Corporation deductions at 3.25% (subject to wage limits).

Employee taxation involves progressive slab rates under two regimes:

• The traditional regime allows deductions and exemptions – such as travel allowances, house rent allowances and home loan interest – whereas the new regime offers lower slab rates but lacks most of the exemptions.
• For FY 2025–26, individuals may choose between the two based on their income profile and preference for deductions.

Tax benefits

India offers a range of tax benefits and incentives to both businesses and individuals including:

• a 100% tax holiday for three years for start-ups within the first ten years of their existence (till 1 April 2030);
• long-term capital gains being taxed at 12.5% (plus surcharge/cess);
• Special Economic Zone (SEZ) units with tax exemptions for up to 15 years (if operational before April 2021);
• International Financial Services Centre (IFSC) units that offer a 100% exemption for 10 out of 15 years;
• non-residents being exempt from capital gains tax on transfer of specified assets such as bonds or global depository receipts, rupee-denominated bonds of an Indian company, derivatives, undertaken in foreign currency on a recognised stock exchange located in any IFSC;
• foreign banks with an offshore banking unit in an SEZ receiving 100% tax exemption on profits for the initial five years and 50% for the next five years on specified incomes;
• a simplified presumptive tax regime for non-residents rendering services or technology in India for setting up electronics manufacturing facilities or manufacturing electronic products; and
• the abolition of angel tax and equalisation levies.

Transfer pricing regulations

India enforces transfer pricing for cross-border and certain domestic transactions, requiring documentation for transactions over INR10 million. Dispute resolution options include Advance Pricing Agreements and Safe Harbour Rules. Block assessments for three years are now allowed to reduce compliance issues.

Other tax issues

Thin capitalisation rules mandate that interest deductions are capped at 30% of EBITDA.

A general anti-avoidance rule (GAAR) allows authorities to disregard arrangements lacking commercial substance if tax benefits exceed INR30 million. Special anti-avoidance rules (SAAR) target specific avoidance schemes.

New Income Tax Bill, 2025

The new Bill aims to simplify and rationalise tax legislation without policy changes.

India’s tax regime offers various incentives to promote business growth, innovation and investment, especially for start-ups and R&D. Fiscal incentives and subsidies are being offered to various industries to enhance domestic production. Income tax authorities and the GST Council are following a consultative approach in policy making. These measures enhance India’s competitiveness as a global investment destination.

Copyright law in India

Copyright protection and enforcement in India is governed by the Copyright Act, 1957 and the rules thereunder. There have been subsequent amendments to the law as well, most notably the Copyright (Amendment) Act, 2012.

What is protected under copyright?

Copyright protects the expression of ideas (and not the ideas themselves) in the following categories:

• literary works (books, articles and software code);
• dramatic and musical works (plays, choreographic works compositions);
• artistic works (paintings, photographs and sculptures);
• cinematograph films (movies and documentaries); and
• sound recordings (music albums, songs and audio podcasts).

Rights granted to copyright owners

The owner of a copyrighted work enjoys exclusive rights, including:

• reproduction right – to make copies of the work;
• distribution right – to sell or distribute copies;
• public performance/display right – to perform or display the work publicly;
• adaptation right – to create derivative works (transcriptions, abridgement and remixes);
• translation right- to translate a work in other languages; and
• moral rights – the owner/author can claim authorship and prevent distortion of the work.

Copyright registration and term of protection

While copyright protection is automatic upon creation, registration with the Copyright Office is advisable. Registration of copyright involves filing of an appropriate application along with requisite documents and fees. Once filed, the application is reviewed by the Copyright Office. Following the review and approval, a registration certificate is issued. A certified copy of the registration certificate is admissible in evidence in all courts without further proof or production of the original.

The term of copyright in a work in India depends on the nature of the work. For literary, dramatic, musical and artistic works the duration is the lifetime of the author plus 60 years. For cinematograph films, sound recordings, photographs it is 60 years from publication. The term of copyright in anonymous/pseudonymous works (except photographs) is 60 years from publication. Once the term of copyright expires, the copyrighted work enters the public domain and can be used by anyone without permission or payment of royalties to the owner.

Assignment and licensing

The owner or prospective owner of copyright in an existing or future work can assign and license the copyright (either in entirety or in part) either wholly or partially and either generally or subject to limitations to any person. For a valid assignment or licensing of copyright, the agreement must be in writing, signed by the copyright owner or an authorised agent, clearly identify the work, specify the rights being transferred or licensed, and define the duration and territorial extent. Further, the agreement should specify any royalty or consideration that may be payable. 

Copyright infringement and remedies

Infringement of copyright occurs when a copyrighted work is used without permission of the owner of copyright. Instances of infringement include unauthorised reproduction, distribution or public performance, as well as plagiarism or illegal adaptations.

A civil and/or a criminal action can be filed by the owner of copyright in the case of infringement.

A civil remedy for copyright infringement entails filing a suit before the court of appropriate jurisdiction. The relief(s) in a suit for copyright infringement may include an order of injunction, damages, accounts of profits and/or seizure of infringing copies for destruction. Interim relief(s) – including an injunction during pendency of the suit and appointment of a local commissioner to visit the premises of the defendant, take stock of the infringing goods, make an inventory, and seize and seal the infringing goods – can also be sought.

The Copyright Act, 1957 also provides for criminal remedy for an offence of copyright infringement. The punishment for the offence includes imprisonment and a fine, which can range from a minimum of six months to a maximum of three years and INR50,000–200,000.

Exceptions to infringement

The Copyright Act, 1957 provides that certain acts do not constitute an infringement of copyright. These include instances of fair dealing such as private or personal use (for research and education for example), criticism, review, reporting judicial or parliamentary proceedings, and adaptation for disabled persons.

AI and copyright

The rise of AI-generated content has also raised complex copyright questions pertaining to ownership and use of copyrighted work to train AI models. The Copyright Office has, while deciding one such case, held that only human-authored works qualify for copyright protection. The legality of training of AI models on copyrighted works is under consideration by the courts. Accession to some key treaties to strengthen digital copyright protections and for facilitating access to copyrighted works has also been considered by the government of India.

Conclusion: a jurisdiction of strategic opportunity and legal maturity

Given the reasoning and numbers, one can point in 2025 to a compelling narrative made by India to global investors, and multinational enterprises seeking jurisdictional certainty and long-term growth. This growth and development are not incidental – it is the byproduct of intended legal reforms, business-enabling policies and regulatory foresight.

India is already an emerged market – it offers a stable political climate, deepening capital base, positive legal and fiscal infrastructure and a consumer market of over a billion people. As global supply chains realign and investor focus shifts towards resilience and diversification, India emerges not just as an option but as an imperative.