{Union Budget 2025: International Relations} Technical & Economic Cooperation with Other Countries set at INR6,375.00 cr, Export Promotion Mission set up

The Union Budget 2025 presents a mixed bag of opportunities and challenges. While significant strides have been made in healthcare, tourism, and manufacturing, experts highlight the need for greater investment in primary healthcare, R&D, and regulatory reforms. India’s economic future looks promising, but sustained policy support and strategic execution will be key to achieving long-term growth.

The Tech Panda asked how the Union Budget 2025 fared vis a vis India’s international relations in business.

Vinay Sahasrabuddhe, Senior BJP leader & Former MP

“The budget for Technical and Economic Cooperation with Other Countries has been set at INR6,375.00 crore, reflecting a continued focus on international partnerships and aid. This aligns with India’s Neighbourhood First policy and the Indo-Pacific vision, particularly through grants, infrastructure development, and soft loans to Bangladesh, Nepal, Bhutan, and the Maldives—all regions where China is making strategic inroads.”

Dr. Indu Bhushan, Vice Chairperson, ASIA Research

“The ‘Heal in India’ initiative aims to boost medical tourism, attracting international patients with relaxed visa norms and greater private participation. However, while these are commendable steps, the budget fails to adequately address critical gaps in primary healthcare and infrastructure.”

Sandhya Vasudevan, Member of the Board, ASIA Research

“The Indian Union Budget 2025 extends the Basic Customs Duty (BCD) exemption to cobalt powder, lithium-ion battery scrap, and 12 other critical minerals to strengthen domestic supply chains for electric vehicles (EVs), battery production, and clean technology. Following the exemption of 25 minerals in July 2024, this move will further boost manufacturing and create jobs.

“China controls over 69% of global rare earth production and nearly 90% of processing, posing strategic risks. By lowering input costs and diversifying supply chains, India enhances its industrial base and reduces reliance on external actors. However, sustained policy support and domestic mineral extraction investments are essential for long-term self-reliance. This is a constructive step towards India’s clean energy and industrial goals.”

Amogh Rai, ASIA Research Director

“A notable reduction is observed in loans to foreign governments, with allocations dropping from INR869.70 crore in 2024-25 to INR375.00 crore in 2025-26. This sharp cutback might be influenced by Sri Lanka’s debt crisis, Pakistan’s IMF bailout, and financial distress in other South Asian nations. India appears to be shifting away from extending direct loans, possibly to avoid sovereign debt risks and overexposure to financially unstable economies.”

Sumit Bajaj, Director, Choice Insurance Broking

“This is a landmark shift that the government has taken recently by proposing the increase in the FDI limit of Indian insurance companies to 100% from 74% which will open up the capital inflow, bring in innovations, and grow healthy competition. The increase in foreign participation will help fill the protection gap, ensuring that more citizens and insurable assets are covered, as IRDAI has envisioned “Insurance for All” by 2047. This will not only make the financial system more resilient but also fuel the growth of insurtech startups, making the insurance landscape more dynamic and consumer-centric. More global players will translate into better choices for consumers, improved product offerings, and a more robust sector overall. The future of insurance in India is poised for unprecedented expansion—driven by capital, competition, and customer focus.”

Chitranshu Mahant, Co-founder & CEO, Primebook

“The government’s initiative in enabling the domestic electronic equipment industry will also give further momentum to Make in India in opening new opportunities for youth and self-reliance in technology. The setting up of the Export Promotion Mission is yet another welcome initiative that will help Indian consumer electronics startups widen their global footprint. We have started exporting our laptops to developing countries like Zimbabwe and Nepal, this initiative would go a long way in further widening our exports and penetration into other developing markets. We welcome these visionary steps for India to become a global technology giant.”

Navneet Munot, MD & CEO, HDFC Asset Management Co. Ltd.

“Set-up of Fund of Fund aimed at start-ups, along with a focus on MSMEs fosters entrepreneurship and could transform India from a nation of job-seekers to job-creators. Simplification of tax structure and ease of compliance should aid in investor confidence and stimulate both, domestic and foreign investments. While short-term volatility could be par for the course due to the current global economic backdrop, the long-term direction rooted in policy prudence and support for growth should bolster Destination India’s credentials for foreign and domestic investors alike.”