Israel - India Business Guide | 2025

*Rs. 1 lakh equals Rs. 100 , 000 ; Rs. 1 crore equals Rs. 100 , 000 , 000 GIFT IFSC: India’s Emerging Financial Hub The Gujarat International Financial Tec-City (GIFT IFSC) continues to expand as India’s leading International Financial Services Centre, offering a competitive tax regime and seamless foreign currency transactions. Since October 2020 , the International Financial Services Centres Authority (IFSCA) has regulated operations across banking, capital markets, insurance, and fintech. The center has grown rapidly, attracting over 725 entities, including global banks, aircraft leasing firms, and investment funds. Key sectors benefiting from GIFT IFSC include: ●● Banking: IFSC banks nowhold over USD 78 billion in assets, with transactions surpassing USD 1 trillion. ●● Funds Industry: Global investors and venture capitalists are leveraging its favorable regulatory environment. ●● Aircraft Leasing: Tax incentives position India as an emerging hub for aircraft leasing. ●● Education: Foreign universities such as Deakin and Wollongong have established campuses within GIFT IFSC. ●● Global In-House Centers: Leading firms, including Bank of America, are using GIFT IFSC for offshore operations. Reforms and Fiscal Strategy Key reforms in the budget include increasing Foreign Direct Investment (FDI) limits in insurance, expanding tax incentives, and streamlining the income tax structure to enhance clarity and compliance. Tax reforms focus on reducing the number of Tax Deduction at Source (TDS) rates and extending the filing period for updated tax returns from two to four years. The fiscal deficit is projected at 4 . 4 % of GDP, with market borrowings estimated at ₹ 11 . 54 lakh crore*. Opportunities for Israeli Companies For Israeli businesses, the budget presents significant opportunities across various sectors: ●● Agricultural Technology: Advanced irrigation solutions, precision farming, and climate- resilient seeds align with India's agricultural reforms. ●● High-Tech and Startups: Collaboration on Atal Tinkering Labs and digital transformation projects, including fintech and cybersecurity. ●● Defense and Security: India's self-reliance push in defense manufacturing offers a strategic entry point for Israeli defense firms. ●● Healthcare and Life Sciences: Increased demand for innovative medical devices, AI- driven diagnostics, and biotech solutions. ●● Infrastructure and Smart Cities: Expansion in broadband and infrastructure financing presents opportunities for Israeli telecom and construction firms. Conclusion India’s 2025 - 2026 budget lays the foundation for inclusive growth, technological advancement, and global trade expansion. For Israeli companies, this presents significant opportunities for collaboration in agriculture, digital transformation, defense, healthcare, and infrastructure. As India moves toward its goal of becoming a developed nation, strategic international partnerships will play a crucial role in shaping its economic future. Information Courtesy of Indian Embassy in Israel 23