Kerala Budget 2025 Highlights: Kochi Metro, K-Homes Initiative, Silver Line Rail Plans Unveiled

Kerala’s Finance Minister K.N. Balagopal presented the state budget for 2025-26, in the State Legislative Assembly on Friday, February 7, 2025, which includes plans for infrastructure development like metro projects, high-speed rail corridors, tourism initiatives, and significant welfare investments.

The budget emphasises Metro rail projects in Kochi, Kozhikode, and Thiruvananthapuram, high-speed rail corridors, the ‘K-Homes’ initiative to transform unused properties into tourism accommodations, and rehabilitation efforts for Wayanad.

Let’s dive into the details and explore the key announcements that are set to shape the state’s infrastructure, economy, and social welfare programs.

Kerala’s 70% Surge in Tax Collections

In terms of Kerala’s financial health, the state has shown resilience, with a 70% increase in its own tax collection over the last four years. This improvement in revenue generation underscores the state’s strengthening economic position.

Despite challenges, Kerala’s financial recovery has laid the foundation for future development projects, reinforcing the government’s commitment to economic growth.

Focus on Wayanad Rehabilitation

The Kerala Budget 2025 allocates ₹750 crore for the rehabilitation of victims affected by the Wayanad disaster. The Finance Minister, K.N. Balagopal, has committed to ensuring the timely completion of this project.

The amount will be utilised in the first phase of rehabilitation efforts, aimed at addressing the immediate needs of those impacted and restoring the region to its previous state. This initiative highlights the government’s focus on both short-term relief and long-term recovery for affected communities.

Revamping Kerala’s Tourism: The K-Homes Initiative

The Kerala government has introduced the K-Homes project as part of its budget for 2025-26. This innovative initiative aims to repurpose vacant houses across the state, converting them into budget accommodations for tourists.

The pilot phase of the project will focus on areas within a 10-kilometer radius of popular tourist destinations like Fort Kochi, Kumarakom, Kovalam, and Munnar. The objective is to boost tourism while simultaneously enhancing the availability of affordable lodging.

This project is expected to improve tourism infrastructure and generate income from underutilised properties, benefiting both the tourism sector and local communities.

Metro Projects: Connecting Kerala’s Urban Heartbeats

The Kochi Metro will receive a significant extension under the 2025 budget. Currently operational in certain parts of the city, the metro will be extended to more areas. The proposed metro system in Kozhikode will soon become a reality.

The budget includes funding for the initial phases of this project. In addition to metro expansions, the budget also highlights plans to develop high-speed rail corridors, which will help link cities across Kerala faster and more efficiently.

This will support the state’s push toward sustainable transport solutions and create economic opportunities by connecting major hubs with minimal travel time.

Important Budget Initiatives for 2025-26

Announcement Details
IT Park in Kannur An IT park will be set up in Kannur to boost the tech sector and create more job opportunities.
Karunya Health Scheme ₹700 crore allocated for the Karunya Health Scheme in 2025-26 to ensure medical support for the underprivileged.
Health Sector Allocation A total of ₹11,431.73 crore allocated for the health sector in 2025-26 for improved healthcare facilities.
LIFE Project One lakh houses will be completed under the LIFE (Livelihood Inclusion and Financial Empowerment) project in 2025-26 with ₹1,160 crore allocated.
Karunya Medical Assistance Scheme ₹200 crore sanctioned for the Karunya medical assistance scheme, helping people with medical needs.
Shipbuilding Yard A new shipbuilding yard will be established in southern Kerala to boost the maritime industry.
Global Kerala Centre The state will establish a Global Kerala Centre with a ₹5 crore project to promote Kerala globally.
High-speed Rail Corridor Related to the Silver Line project, a semi-high-speed rail corridor from Thiruvananthapuram to Kasaragod. The project aims to reduce travel time to under four hou₹across Kerala’s north-south corridor.
Cyberbullying & Fake News Project A joint initiative by the State Police and the Public Relations Department to combat cyberbullying and fake news.
Bio-Ethanol Research ₹10 crore allocated for research into cost-effective methods of manufacturing bio-ethanol in Kerala.
Government Vehicle Replacement ₹100 crore to replace old and outdated government vehicles with more efficient and environmentally friendly alternatives.
Wild Animal Attacks Package An additional ₹50 crore allocated for the special package to address wild animal attacks in the state.

 

Conclusion

Kerala’s 2025 Budget presents an ambitious roadmap for growth, focusing on transformative infrastructure projects, social welfare initiatives, and economic recovery. With substantial investments in metro projects, health schemes, and sustainable development, the state is poised to enhance its connectivity, promote tourism, and uplift its citizens’ quality of life.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

5 Lakh Women Dropped from Ladki Bahin Scheme: What Are the Eligibility Criteria?

The Maharashtra government has declared over 5 lakh beneficiaries ineligible for the Ladki Bahin Scheme, citing violations of the eligibility criteria. The scheme, aimed at providing financial support to women from low-income families, has specific rules regarding income, vehicle ownership, and family background.

Let’s take a look at the eligibility criteria and why these beneficiaries were removed from the program.

What is Ladki Bahin Yojana ?

The Maharashtra government’s Mukhyamantri Majhi Ladki Bahin Yojana, a popular government welfare scheme, was launched to offer financial assistance to women from low-income families in the state. The scheme aimed to provide ₹1,500 per month to eligible women with an annual family income of under ₹2.5 lakh.

However, in February 2025, the state government declared over 5 lakh beneficiaries ineligible, citing violations of the scheme’s criteria.

Key Eligibility Criteria for the Ladki Bahin Scheme

  1. Age and Family Income: Women up to 65 years of age and with a family income below ₹2.5 lakh annually were eligible.
  2. No Government Employee in Family: The beneficiary should not have a family member employed in a government position.
  3. Vehicle Ownership: Beneficiaries were required not to own a four-wheeler.
  4. No Assistance from Other Government Schemes: Applicants must not be receiving any other form of financial assistance from government schemes like the Sanjay Gandhi Niradhar Scheme or Namo Shetkari Scheme.

Reasons for Ineligibility

The Maharashtra government discovered that many women receiving benefits under the scheme did not meet the established criteria, leading to their removal from the program.

  1. Double Benefits: About 2.30 lakh women were found to be beneficiaries of both the Ladki Bahin Scheme and the Sanjay Gandhi Niradhar Scheme, which provides financial support to senior citizens.
  2. Age Factor: 1.10 lakh women over the age of 65 were disqualified because they exceeded the age limit.
  3. Vehicle Ownership: 1.60 lakh women were found to own four-wheelers, violating one of the key requirements for eligibility.

What Happens to the Money Deposited in Ineligible Beneficiaries’ Accounts?

Despite the ineligibility, the state government has clarified that the money already deposited in the accounts of these women between July 2024 and December 2024 (approximately ₹450 crore in total) will not be reclaimed.

The women will no longer receive payments from January 2025 onward, but the funds deposited in the prior months will not be reversed.

The scheme was initially launched in the lead-up to the 2024 state elections, with a total of 2.46 crore beneficiaries enrolled.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

FirstCry’s Parent Brainbees Shares End 3-Session Losing Streak as Q3 FY25 Net Loss Narrows

Brainbees Solutions shares rebounded after three consecutive sessions of losses. The share price saw a significant uptick of 3.88% as it rose to ₹434.65 at 11:45 AM on the NSE. The stock opened at day’s high of ₹458, while the low point stood at ₹430.55. The stock had experienced a decline of over 12% in the last three sessions of the previous week.

FirstCry Q3 FY25 Result Highlights

Brainbees Solutions consolidated net loss narrowed to ₹14.73 crore for Q3 FY25, compared to ₹48.41 crore in Q3 FY24. Revenue surged by 14.31%, reaching ₹2,172.3 crore for the quarter, up from ₹1,900.2 crore in the same period last year.

This was accompanied by a profit before tax of ₹6.88 crore, a strong recovery from a pre-tax loss of ₹42.61 crore in Q3 FY24.

The company’s total expenses increased by 12.09% YoY to ₹2,064.4 crore, with a notable rise in the cost of materials consumed (up 23.52% YoY) and stock-in-trade purchases (up 16.21% YoY).

EBITDA for the quarter grew by 30.16%, reaching ₹138.50 crore, compared to ₹106.40 crore in Q3 FY24. The EBITDA margin improved to 6.4% from 5.6% in the same period last year.

Brainbees Sees Revenue Growth, Investment

Revenue from various business segments saw growth, with India multi-channel revenue rising by 15.05%, international business growing by 13.32%, and Globalbees revenue increasing by 12.76%. In its investor presentation, Brainbees Solutions highlighted Q3 FY25 as its most profitable quarter in the last four years, with a 54% increase in adjusted EBITDA for the first nine months of FY25.

Additionally, the company’s board approved an investment of ₹299.59 crore in its wholly-owned subsidiary, Digital Age Retail (DARP), through equity share subscription.

Brainbees Solutions, best known for its online platform FirstCry, offers a wide range of products for babies and kids, including apparel, baby gear, toys, and more, from both Indian and global brands.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a pe₹onal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Oil India Share Price Down 4%; Q3 FY25 Net Profit Declines by 23% YoY

Oil India Limited’s share price has seen a decline of 4.68%, trading at ₹404.90 at 11:30 AM on the NSE, down by ₹19.90 from its previous close of ₹424.80. The stock opened at ₹414.80 and reached a high of ₹415.55 during the session, but dropped to a low of ₹404. Oil India Limited’s stock has added to its recent decline, falling by nearly 1.5% over the last two sessions.

Oil India’s Q3 FY25 Financial Highlights

Oil India, the state-owned petroleum business, reported a 23% decline in its net profit for the third quarter (Q3) of FY25, which stood at ₹1,222 crore, compared to ₹1,550.29 crore in Q3 FY24. The company also saw a 1.58% decrease in revenue from operations (excluding excise duty), which came to ₹5,240 crore.

Segment-wise, the company’s crude oil revenue declined by 13.18% to ₹3,658 crore, while revenue from natural gas dropped by 1.98% to ₹1,382 crore. However, income from pipeline transportation rose 7.68% YoY to ₹ 146 crore. LPG revenue slid 17.09% to ₹34 crore, while renewable energy income increased by 31.55% to ₹19 crore.

The company’s EBITDA for the quarter was ₹2,321.34 crore, reflecting an 11.19% YoY decrease. Despite this drop, the EBITDA margin improved to 42.76%, up from 41.34% in Q3 FY24. The realised crude oil price stood at $73.82 per barrel, lower than the $84.14 per barrel recorded during the same period last year.

Oil India Announces Dividend, Modest Production Growth

Oil India’s crude oil production saw a modest increase of 1.4%, reaching 0.868 million metric tons (MMT) compared to 0.856 MMT in Q3 FY24. Natural gas production also rose slightly by 0.85% to 0.829 billion cubic mete₹ (BCM).

In a positive development, the company’s board approved an interim dividend of ₹7 per equity share for FY25, with a record date set for February 17, 2025. The dividend is expected to be paid by March 8, 2025.

Oil India, a Maharatna company, is under the administrative control of India’s Ministry of Petroleum and Natural Gas, with the Government of India holding a 56.66% stake as of December 31, 2024.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a pe₹onal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Swiggy Shares Dip for Fifth Consecutive Session: What’s Driving the Fall?

Swiggy Limited’s share price has experienced a notable decline, falling by ₹18.60, or 4.89%, to ₹362.05 as of the latest update. This drop follows a previous close of ₹380.65, with the stock reaching a low of ₹359.00 during the session.

The current price reflects a weaker market sentiment, and the stock has been facing downward pressure. Swiggy Limited’s stock has seen a significant decline of more than 17% over the past five trading sessions.

Q3 FY25 Financial Highlights

Swiggy reported a widening net loss of ₹799 crore for Q3FY25, compared to a loss of ₹574.4 crore during the same period last year. Despite the increased losses, the company achieved a 31% year-on-year growth in revenue, reaching ₹3,993 crore.

The gross order value (GOV) surged by 38% to ₹12,165 crore, reflecting strong demand for its services. However, Swiggy’s Ebitda loss slightly increased on a quarter-on-quarter basis.

The company continues to focus on expanding in quick-commerce, including adding new stores and growing its user base.

Q3 FY25 Operational Developments

Swiggy has been expanding its quick-commerce business with the launch of initiatives like Bolt (10-minute food delivery) and Snacc, as well as expanding its dark store network.

Swiggy also introduced Swiggy Scenes, focusing on restaurant event reservations, and a premium subscription service, One BLCK, to diversify its revenue sources.

The company’s quick-commerce division, Instamart, added 86 stores in January 2025 and grew its Monthly Transacting Users (MTUs) to 9 million, up by 2 million from the previous quarter.

CEO’s Statement: Swiggy’s Managing Director and Group CEO, Sriharsha Majety, highlighted the company’s ongoing efforts to create more consumption opportunities, particularly through festive offers, new categories in quick-commerce, and the expansion of delivery options like Bolt and Snacc. Majety also mentioned that the company is investing heavily in quick-commerce and dark stores expansion amidst high competition.

Despite the widening losses, Swiggy is prioritizing growth in its core business and expanding into newer categories, aiming to capture more consumption occasions and build a stronger market position in a highly competitive landscape.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Bharti Airtel Shares up for the 2nd Straight Day; To Exits Low-Margin Voice, Messaging Business

As per news reports, Bharti Airtel is exiting its low-margin voice and messaging business to concentrate on high-growth areas like 5G, IoT, data centers, and cloud services. This strategic shift aims to improve profitability, despite impacting its top line in the short term.

Overview of Airtel’s Strategic Shift

In a strategic move, Bharti Airtel, a leading telecom operator, has announced its exit from the low-margin commodity voice and messaging business.

This decision, shared by Gopal Vittal, the company’s Vice-Chairman and Managing Director, was made to allow the company to focus on more profitable and growth-oriented segments, such as IoT, data centers, cloud services, and connectivity solutions.

Although the exit will lead to a short-term impact on the company’s top line, Airtel clarified that there would be minimal effect on EBITDA due to the marginal contribution of this segment. Instead, the company is reallocating its capital expenditure to strengthen its 5G infrastructure.

Airtel’s Focus on 5G Growth

Airtel’s efforts to expand its 5G services come as the demand for mobility and fixed wireless access (FWA) rises. The company has shifted its focus toward rolling out more 5G radios, a strategy to meet the growing demand in the market.

Additionally, with India’s average revenue per user (ARPU) still the lowest globally, Airtel has called for tariff repairs to ensure financial stability and sustainable growth in the sector. With this transition, Airtel is positioning itself for long-term growth in digital services, moving away from the low-margin segments and focusing on the high-potential areas that promise higher returns.

Share Price Performance

Bharti Airtel’s stock is trading at ₹1,687.90 at 10:40 AM on the NSE, marking an increase of ₹11.15 or 0.66% from the previous close of ₹1,676.75. The stock opened at ₹1,698.85 and reached a high of ₹1,700.00 before dipping to ₹1,679.70.

Bharti Airtel’s stock has continued its positive momentum, adding to the 3.5% gain recorded yesterday.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

BEL Shares in Focus; Secures ₹962 Cr Orders, Including EOFCS Order for Indian Navy

Bharat Electronics (NSE: BEL) has secured ₹962 crore in orders, including a ₹610 crore deal for indigenously developed EOFCS for the Indian Navy. The company’s total order book for FY 2025 now stands at ₹11,855 crore, the company said in a press release on the exchanges.

Order Details

Navratna Defence Public Sector Undertaking, Bharat Electronics Limited (BEL), has signed a contract valued at ₹610 crore for the supply of Electro Optic Fire Control System (EOFCS) for the Indian Navy.

This fully indigenously developed system will be installed and integrated on Indian Naval platforms. The EOFCS is designed for panoramic/sector search, tracking various targets in both day and night conditions, and engaging those targets with medium and short-range gun mounts.

This contract further enhances India’s defense capabilities by using advanced, homegrown technology.

Additional Order Details and Order Book Value

In addition to this landmark deal, BEL has secured additional orders valued at ₹352 crore, including technologies such as anti-drone systems, fuzes, integrated fire detection and suppression systems, and vessel communication systems.

These orders are essential for maintaining and enhancing India’s defense infrastructure, providing integrated solutions across various defense sectors.

With the new orders, BEL’s total order value for the current financial year has now reached ₹11,855 crore, further solidifying its position as a key player in India’s defense sector. These contracts also highlight the growing role of indigenously developed systems in modernizing defense infrastructure.

Share Price performance

Bharat Electronics Limited (BEL) shares are trading at ₹279.25 at 10:15 AM on the NSE, reflecting a 0.79% increase from the previous close of ₹277.05. The stock has seen a high of ₹282.20 and a low of ₹276.30 during the current trading session. With the opening price at ₹278.90.

Bharat Electronics Limited (BEL) shares have seen a decline for the third consecutive session today, continuing the downward trend that has resulted in a 4% loss over the past two trading days last week.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

HDFC Bank’s MCLR Revision: How It Impacts Your Loan EMIs

HDFC Bank has increased its MCLR for the overnight tenure by 5 bps, setting it at 9.20%. This rate action follows RBI’s 25 basis point repo rate cut.

RBI’s Latest Rate Action

HDFC Bank has increased its Marginal Cost of Funds-based Lending Rate (MCLR) for the overnight tenure by 5 basis points (bps), from 9.15% to 9.20%, effective February 7, 2025.

This hike follows the Reserve Bank of India’s (RBI) first rate cut in five years, which saw the repo rate reduced by 25 bps, from 6.5% to 6.25%.

MCLR Rates Unchanged for Other Tenures

The bank kept the MCLR rates unchanged for all other tenures, which are as follows:

Overnight: 9.20%

1 month: 9.20%

3 months: 9.30%

6 months: 9.40%

1 year: 9.40%

2 years: 9.45%

3 years: 9.45%

With this revision, HDFC Bank’s MCLR now ranges from 9.20% to 9.45%. Borrowers with loans linked to MCLR will see an increase in their EMIs when the MCLR rates fluctuate.

Understanding MCLR and Its Impact

MCLR (Marginal Cost of Funds-based Lending Rate) is the minimum interest rate at which banks can lend. Introduced by the Reserve Bank of India (RBI) in 2016, it replaced the older base rate system.

MCLR is based on the bank’s cost of borrowing and aims to make lending rates more transparent and responsive to changes in the market. When MCLR increases, borrowers with loans linked to MCLR see a rise in their EMI payments. Similarly, a decrease in MCLR leads to lower EMIs for those with linked loans.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Upcoming IPOs This Week: 7 IPO Debuts to Watch From Feb 10-14

The upcoming IPOs this week promise opportunities for investors, with 9 notable debuts scheduled between February 10-14. These IPOs span diverse sectors, offering a chance to explore new growth stories. Here’s a quick look at the key highlights to watch out for.

Upcoming IPOs This Week in February 2025

  • Hexaware Technologies

Hexaware Technologies, a leading IT services firm owned by US private equity giant Carlyle, is launching an IPO worth ₹8,750 crore. The entire issue will be an offer-for-sale (OFS) by its promoter, CA Magnum Holdings.

The Hexaware Technologies IPO will be open for subscription from February 12, 2025, and close on February 14, 2025. The price band is ₹674 to ₹708 per share, and the minimum lot size is 21 shares. Retail investors will need to invest a minimum of ₹14,868.

  • Quality Power Electrical Equipments

Quality Power, a provider of high-voltage electrical equipment and solutions, is launching an IPO to raise ₹858.70 crore. The IPO will comprise both a fresh issue and an offer-for-sale, with 1.49 crore equity shares being sold by existing shareholders.

The Quality Power IPO will be open for subscription from February 14, 2025, and will close on February 18, 2025. The price band is expected to be ₹401 to ₹425 per share, with a minimum lot size of 26 shares. Retail investors will need to invest a minimum of ₹11,050.

  • PS Raj Steels

PS Raj Steels, a manufacturer of stainless steel pipes and tubes based in Hisar, is set to launch its maiden public issue worth ₹28.28 crore. This will be a book-built issue with no fresh issue or OFS.

The PS Raj Steels IPO will be open for subscription from February 12, 2025, and close on February 14, 2025. The price band is ₹132 to ₹140 per share, and the minimum lot size is 1,000 shares. Retail investors will need to invest a minimum of ₹1,40,000.

  • Voler Car

Voler Car, a company providing employee transportation services, is launching an IPO to raise ₹27 crore.

The Voler Car IPO will be open for subscription from February 12, 2025, and close on February 14, 2025. The price band is ₹85 to ₹90 per share, with a minimum lot size of 1,600 shares. Retail investors need to invest at least ₹1,44,000.

  • Maxvolt Energy Industries

Maxvolt Energy, which manufactures lithium-ion batteries for electric vehicles, energy storage, and electronics, is launching an IPO worth ₹54 crore.

The Maxvolt Energy Industries IPO will be open for subscription from February 12, 2025, and close on February 14, 2025. The price band is ₹171 to ₹180 per share, and the minimum lot size is 800 shares. Retail investors need to invest at least ₹1,44,000.

  • LK Mehta Polymers

LK Mehta Polymers, a plastic products manufacturer, is set to launch its fixed-price IPO to raise ₹7.38 crore.

The LK Mehta Polymers IPO will be open for subscription from February 13, 2025, and close on February 17, 2025. The issue price has been fixed at ₹71 per share, and the minimum lot size is 1,600 shares. Retail investors need to invest at least ₹1,13,600.

  • Shanmuga Hospital

Shanmuga Hospital, a multispecialty hospital based in Tamil Nadu, is launching an IPO to raise ₹20.62 crore. The issue price has been fixed at ₹54 per share.

The Shanmuga Hospital IPO will be open for subscription from February 13, 2025, and close on February 17, 2025. The minimum lot size is 2000 shares, and retail investors will need to invest at least ₹1,08,000.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

How Much Does a BMW Car Cost After Union Budget 2025 Reduced Customs Duty on Imported Cars?

The world is swiftly moving towards reducing tariffs on imports from the US, and India seems to be leading the charge. In the 2025 Union Budget, Finance Minister Nirmala Sitharaman announced a notable reduction in the Basic Customs Duty (BCD) for bikes and cars above USD 40,000, slashing it from 125% to 70%.

But what does this mean for domestic buyers, and how much revenue is the government potentially losing due to this reduction? To understand this better, let’s break down how this reduction affects the luxury car market, especially for brands like BMW.

What is the Custom Duty on Imported Cars After Budget?

The customs duty on imported cars priced above $40,000 (approximately ₹35 lakh) has been cut from 125% to 70%, with the 10% Social Welfare Surcharge also eliminated entirely.

For BMW buyers, this change translates into a price drop for their imported models, particularly for high-end variants that fall into this category. This could make BMW cars more affordable for Indian buyers, as the reduced customs duty directly impacts the overall cost of these vehicles, making them more competitively priced compared to earlier.

However, the budget introduced a 40% Agriculture Infrastructure and Development Cess (AIDC), replacing the previous surcharge, thus keeping the overall duty at 110%. While this change may seem promising for buyers, the impact for car buyers is largely neutralised due to the new AIDC.

Agriculture and Development Cess Added

The Agriculture Infrastructure and Development Cess (AIDC) was introduced in a previous Union Budget to strengthen agricultural infrastructure. Initially, it was applied to items such as gold, silver, alcohol, and crude palm oil, but vehicles were left out. Now, AIDC is being included in the overall duty calculations.

This change in the taxation system reflects a broader shift aimed at boosting the central government’s revenue. While the Basic Customs Duty (BCD) is shared between both the central and state governments, the AIDC is solely collected by the central government.

Impact of Customs Duty Cuts on Imported Motorcycles and Brands Like Harley Davidson

The import duty on motorcycles with engine capacities up to 1,600 cc that are imported as completely built-up (CBU) units has been reduced from 50% to 40%. For larger motorcycles with engine capacities over 1,600 cc, the duty reduction is even more significant, dropping from 50% to 30%.

Harley Davidson motorcycles, known for their powerful engines, typically have engine capacities well above 1,600 cc, meaning they will benefit from this larger reduction in import duties.

The recent Budget has cut customs duties not just for larger motorcycles over 1,600cc but also for smaller imported models from brands like Honda, Suzuki, Ducati, and KTM.

Furthermore, the import duty on semi-knocked down (SKD) kits has been lowered from 25% to 20%, while the duty on completely knocked down (CKD) units has been reduced from 15% to 10%, as announced in the Union Budget presented on Saturday.

Conclusion

In conclusion, the recent changes in import duties as announced in the Union Budget 2025 are a mixed bag for vehicle buyers. While the reduction in Basic Customs Duty (BCD) on cars over USD 40,000 may seem beneficial at first glance, the introduction of the Agriculture Infrastructure and Development Cess (AIDC) significantly largely offsets potential savings. This shift aims to increase the central government’s revenue but has altered the dynamics of the import duty structure, particularly for luxury cars.

On the brighter side, there’s a notable relief for motorcycle enthusiasts. The reduction in duties across all categories—complete built units (CBUs), semi-knocked-down (SKD), and completely knocked-down (CKD) units—has made imported bikes more affordable.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.