Budget 2025 Proposes Extension of Special Tax Exemptions for Global Sovereign Wealth and Pension Funds Investing in Infrastructure

The Union Budget 2025 proposed extending special tax exemptions for sovereign wealth funds and pension funds that invest in infrastructure. The extension aims to encourage long-term investments in critical infrastructure projects, which will benefit sectors like transportation, energy, and telecommunications. The government is looking to attract more foreign capital into India’s infrastructure development by offering tax incentives to global sovereign wealth and pension funds. This move is designed to create a favorable investment climate and support India’s infrastructure growth. It reflects the government’s strategy to diversify funding sources for national infrastructure projects and reduce the reliance on traditional financing methods.