Strong support for India’s Union Budget 2025 has been voiced by the United States India Business Council (USIBC), which highlights the necessity of substantial economic reforms to strengthen trade relations between the United States and India. The USIBC President, Ambassador Atul Keshap, emphasized that these reforms are critical to raising India’s level of international competitiveness and drawing in more foreign investment.
The budget has a strong emphasis on sectors that support India’s standing as a major actor in the world economy, including exports, investment, micro, small, and medium-sized businesses (MSMEs), and agriculture. As the fifth-largest economy in the world and a crucial partner in the Indo-Pacific area, Keshap stated that India’s continuous economic reforms are essential to opening up new growth prospects with the United States.
Keshap called for India to implement more comprehensive changes to its corporate practices, tax laws, and regulatory structures. He said that although the budget presents a vision for technological innovation and economic resilience, more extensive systemic changes are required to boost FDI and make the regulatory environment easier for companies.
The middle class tax relief proposals were welcomed by the USIBC, as they are anticipated to increase savings and consumption. It is expected that the Finance Minister’s announcement that annual salary up to ₹12.75 lakh will not be subject to income tax will boost economic activity.
Keshap voiced concern over the lack of a notable acceleration in investment inflows notwithstanding stable levels of FDI. He emphasized that strengthening economic links between the United States and India requires a fair and open trading environment.
Keshap commended India’s efforts to ensure energy security, including the ₹20,000 crore Nuclear Energy Mission for Small Modular Reactors (SMRs). He pointed out that expedited regulatory clearances and a well-defined private sector participation roadmap are essential for successful implementation.
The comment from USIBC highlights a
