Business APAC
25th April, 2025
This India business week, the scene shows a mix of strong homegrown activity and nervousness about global economics. Private sector growth, especially in manufacturing, thanks to booming exports, looks good. But worries about potential US trade policies are making businesses uneasy.
The stock market reflects this split–up on global trends and foreign cash, but is jittery about geopolitics and waiting on big company earnings. Meanwhile, Indian startups are getting a boost from fresh funding and helpful government moves, even as trends like AI and sustainability emerge across the country.
Key Developments in the India Economy
- Growing Fast, But Trade Fears Linger: Examining the data from this India business week, private sector activity in India sped up in April, hitting an eight-month high. The HSBC flash Composite PMI climbed to 60.0. Manufacturing led the charge (PMI at 58.4, a one-year high), helped by a record jump in export orders.
This suggests India’s becoming a go-to manufacturing spot. Still, confidence has dipped to an eight-month low, particularly in services. Blame worries about possible US trade actions. Economists have even slightly lowered India’s GDP growth forecast to 6.3%. - EV Policy Under Review Due to US Trade Talks: Showing how much global trade talks matter, this India business week, the Indian government is reportedly looking at changing its electric vehicle manufacturing policy (SPMEPCI). The idea is to possibly allow lower import taxes as part of a future trade deal with the US. It’s a balancing act: attract foreign EV makers while protecting local industry during these talks.
- Markets Up, But Caution Remains: Indian stocks looked set to rise this India business week, helped by good vibes globally and steady buying from Foreign Institutional Investors (FIIs) – they’ve been net buyers for seven days straight (buying ₹8,250.53 crore on April 24).
But tensions after the Kashmir attack and Pakistan stopping trade added caution, especially before a long weekend. Everyone’s also watching for Q4 results from giants like Reliance and Maruti Suzuki today, which could really move the market. - Important Policy & Rule Changes: Some key updates came up this India business week. The tax department (CBDT) said settlements under SEBI rules won’t be tax-deductible from April 1, 2025. The Reserve Bank of India (RBI) seems to be leaning towards cutting rates to help growth.
Tax Collected at Source (TCS) now applies to luxury goods over ₹10 lakh, and the limit for sending money abroad (LRS) is up to ₹10 lakh. Big news for startups: the ‘angel tax’ is gone, there are plans for AI and deep tech R&D Incentives, and the startup tax break (Section 80-IAC) now runs until March 2030. - Startups Bouncing Back with More Funding: India’s startup world is getting its energy back this India business week. After two slow years, Venture Capital funding jumped in Q1 2025 to $3.1 billion (up 41% from last year).
Big funding rounds for Udaan ($340M pre-IPO), an AI startup ($41M), and agritech firm BharatAgri (₹35 crore) show investors are interested again. Ather Energy’s IPO plans are a big deal for the EV sector, even if the IPO size was trimmed. Expect more startup mergers and acquisitions (M&A) in 2025 as big companies buy smaller ones and sectors like fintech and SaaS combine forces.
Emerging Business and Finance Trends in India:
What’s changing how business gets done in India? AI is being used more for decisions, customer help, and automating tasks. Green, eco-friendly businesses are getting popular as shoppers care more about sustainability.
E-commerce is reaching smaller towns, not just big cities, thanks to better internet. The fintech boom continues with digital payments (like UPI) soaring and more online lending. People are focusing more on health, wanting online doctor visits, digital fitness, and healthy food. Finally, the gig economy – freelancing and short-term contracts – is changing how people work and companies hire.
Conclusion:
So, as of April 25, 2025, India’s economy is showing strength, especially in making things and selling them abroad. The startup scene is buzzing again with new money and helpful policies. But everyone’s keeping an eye on global trade issues and politics. Businesses are adapting fast, using more tech like AI, going green, and figuring out how to serve customers better in a changing world. It’s a time of opportunity mixed with real challenges.
Also Read: Q4 Results 2025: Is the Stock Market Ignoring Warning Signs from India’s Biggest Firms?
