Everything You Need to Know About India’s 2025 Budget & the Luxury Segment
Everything You Need to Know About India’s 2025 Budget & the Luxury Segment

So, what’s the takeaway? Motorcycles and jewellery see genuine price drops, while luxury cars remain a status quo game. Premium home goods and tech are a mixed bag, with some savings and some new costs. As for India’s growing love for accessible luxury? That’s only going up, and brands will be paying attention

The 2025 Union Budget signals a shift in India’s approach to luxury—one that balances accessibility with long-term economic strategy. While duty cuts on superbikes and platinum jewellery might seem like a win for premium consumers, the larger play is in fostering local manufacturing and clean-tech innovation.

 

“Today’s Union Budget 2025 presents a forward-thinking roadmap for strengthening India’s manufacturing ecosystem, with a clear emphasis on clean technology, skill development, and infrastructure growth,” says Ashish Gupta, Brand Director, Volkswagen India. This means that while high-end imports may see some relief, the government’s larger priority remains on making India a self-reliant production hub.

 

That intent is clear in the automotive sector, where duty reductions on motorcycles contrast with a restructuring of luxury car import taxes. Meanwhile, in consumer goods, some luxury items are getting cheaper—platinum jewellery, for instance—while others, like high-end display panels, are facing higher levies.

 

Beyond luxury, the budget also introduces measures aimed at boosting disposable income. “Tax exemptions for individuals earning up to ₹12 lakh annually will increase purchasing power and drive greater demand in the auto sector as well,” Gupta notes. So while luxury purchases might get marginally easier in some categories, the bigger question is whether India’s evolving economic strategy will redefine what luxury actually means. Here’s what you need to know:

 

Big Bikes, Big Savings

 

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Superbikes just got more affordable in India thanks to sweeping import duty cuts. Completely built-up (CBU) motorcycles over 1,600cc now attract a 30% duty, down from 50%. Semi-knocked down (SKD) units saw a drop from 25% to 20%, while completely knocked down (CKD) bikes now face a reduced 10% duty, down from 15%. Even motorcycles below 1,600cc have benefited, with CBU duties down from 50% to 40%, SKD units taxed at 20% instead of 25%, and CKD bikes down to 10%. So, if you've been holding out on purchasing bikes from Harley-Davidson, Indian,BMW Motorrad or Triumph—perhaps now's your chance to plan your dream power cruiser, go-anywhere ADV, or old-school American touring machine.

 

While this move helps bring premium motorcycles closer to enthusiasts, not all brands will feel the impact equally. Ducati and Triumph, for instance, already import most of their bikes from Thailand through an FTA route, meaning the cuts may not significantly affect them. However, their high-end models from Italy and the UK will see price reductions. Harley-Davidson, which has been pushing premium imports, stands to gain the most from this shift with its larger array of 1600cc+ cruisers. Meanwhile, despite these cuts, everyday two-wheelers remain taxed at 28%, with an additional 3% cess on bikes above 350cc, keeping essential mobility out of the affordability conversation .

 

Luxury Cars: A Shift in Taxes, But Not in Prices

 

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Luxury cars saw a major reduction in customs duty, with taxes on imports over $40,000 (₹35 lakh) dropping from 125% to 70%. However, this comes with a catch—a new 40% Agriculture Infrastructure and Development Cess (AIDC) that offsets the reduction, keeping the final tax burden at 110% . The result? While it looks good on paper, this doesn’t translate into significant savings for buyers. Automakers importing high-end models might make minor pricing adjustments, but don’t expect luxury sedans and SUVs to suddenly become cheaper.

 

Jewellery & Accessories: Platinum Just Got Shinier

 

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If you’re looking to invest in fine jewellery, this budget brings some relief. The customs duty on jewellery has been reduced from 25% to 20%, making high-end gold and diamond pieces slightly more accessible. Platinum jewellery, in particular, sees a dramatic price adjustment with import duties on platinum findings slashed from 25% to just 5% . With India being one of the world’s largest jewellery markets, this could encourage more high-value purchases, particularly for platinum-based designs.

 

Luxury Tech: Gadgets & Displays

 

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Premium tech products are seeing mixed changes this year. If you’re in the market for a high-end laptop, you might save a bit—import duties on select electronic items have been adjusted, bringing down the cost of devices like the MacBook Pro. A model previously priced at ₹3.46 lakh could now be around ₹3.37 lakh thanks to a drop in customs duty from 38.5% to 35% .

 

On the other hand, imported interactive flat display panels—often used in premium home entertainment setups and high-end office spaces—will now cost more, as customs duty has been raised from 10% to 20% . While this move is meant to encourage local manufacturing, it also means buyers looking for top-tier display technology might have to shell out extra.

 

Luxe Homes: Imported Furniture & Lighting

 

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The budget also impacts luxury home goods, with several import duty reductions making high-end furniture slightly more affordable. If you’re in the market for premium European furniture, imported beds and mattresses now come with a 2.5% duty reduction, bringing slight price drops—for instance, a ₹65,000 imported mattress could now cost ₹63,725 .

 

Designer sofas, too, will see minor reductions, with duties dropping from 25% to 20%, shaving off around ₹13,500 from a ₹6,90,000 leather couch . High-end lighting fixtures are also slightly cheaper, as customs duties on imported lighting have been reduced by 5% . While these cuts may not be drastic, they do make luxury interiors a little more accessible for premium homeowners.

 

Tourism & Spiritual Tourism: A Renewed Focus

 

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The 2025 Budget has earmarked a substantial ₹20,000 crore to boost the tourism sector, with a significant emphasis on developing 50 destinations across the country. This initiative aims to position India as a key destination on the world map, particularly highlighting its rich spiritual heritage—with new airports, conference centres, and other initiatives expected to follow soon.

 

Continuing the focus on places of spiritual and religious significance, the government plans to enhance infrastructure and promote circuits that attract pilgrims and spiritual seekers. This move not only aims to increase tourist footfall but also seeks to create opportunities for local entrepreneurs and communities, thereby fostering economic growth at the grassroots level. 

 

Beyond luxury goods, the 2025 Budget has introduced broader economic reforms—raising the nil income tax threshold to ₹12 lakh, increasing credit access for MSMEs, and investing in tech-driven innovation . While duty reductions on premium products are making headlines, the larger play is balancing global trade pressures with domestic manufacturing incentives .

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