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  • FLIPKART, ZEPTO, BOAT: WHAT TOP INDIAN BRANDS CAN TEACH YOU ABOUT EPIC TRADEMARK STRATEGY

    INTRODUCTION

    In India’s rapidly growing market, trademark strategy is essential for protecting a brand’s identity as trademarks are essential for building trust and securing business reputation. This article explores famous trademark cases in India, highlighting landmark disputes involving major brands like Flipkart, Zepto, and boAt that illustrate key legal principles in trademark enforcement. It also showcases prominent trademark examples in India, such as TATA, AMUL, Aashirvaad, etc, explaining how these brands actively protect their marks to prevent misuse and copy. Additionally, you’ll find a clear, step-by-step guide on how to trademark a brand name in India, detailing the legal process under the Trade Marks Act, 1999, to help businesses safeguard their intellectual property and ensure long-term brand value.

    Need help protecting your brand? Platforms like TMWala simplify the trademark registration and monitoring process, offering affordable legal assistance to startups, small businesses, and growing brands.

    Famous Trademark Cases in India That Reflect a Strong Trademark Strategy

    Indian courts have seen numerous landmark decisions that shape trademark enforcement today. Let’s look at three significant cases that illustrate various aspects of trademark strategy and involve Flipkart, Zepto, and boAt:

    1. Flipkart vs DC DERMACOL Dispute – What Flipkart’s Case Teaches Us About Trademark Strategy

    The sole distributor of the cosmetic brand “DC DERMACOL”, Sanash Impex Pvt. Ltd., filed a formal complaint against Flipkart, putting the company at the centre of a legal battle. They claimed that Flipkart was selling copied goods of their trademarked goods. The platform sought protection under Section 79, arguing that it was only a digital facilitator and not accountable for third-party listings, claiming “intermediary” status under Section 2(1)(w) of the IT Act.

    However, as stated in the IT Guidelines 2021(Read here – Government notifies Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021), the Delhi High Court made it clear that this protection only applies when due diligence is undertaken. Because Flipkart had removed some listings but insisted on a court order for others, the Court had to assess whether ‘actual knowledge’ without a court order required action. The Court ruled in Flipkart’s favour, affirming that an intermediary cannot be forced to determine trademark validity without a judicial order..

    2. Zepto vs Zepto Trademark Dispute

    In a significant development, Kiranakart Technologies, the company behind quick-commerce platform Zepto, filed a petition to cancel the existing ZEPTO trademark, as it is already registered by Mohammad Arshad since 2014 under Class 35.Further, Kiranakart argued that Arshad never commercially used the mark.

    The Delhi High Court agreed, citing Section 47(1)(b) of the Trade Marks Act, 1999, which allows cancellation of a mark if unused for over five years. As Arshad failed to provide evidence of commercial use, the court held that mere registration without bona fide use does not give indefinite rights. Kiranakart, with nationwide presence and significant goodwill, secured the removal of the trademark, a major victory for active brand users and a strong trademark strategy focused on proving usage and intent.

    3. boAt’s Trademark Dispute

    Imagine Marketing Pvt. Ltd., the owner of the “boAt” trademark, successfully sued those who were selling counterfeits of their products, in another instance that demonstrates the effectiveness of enforcement. The Delhi High Court awarded ₹15 lakh in damages, citing egregious use of boAt’s brand, packaging, and insignia.

    Local Commissioners appointed by the court seized fake boAt products. While defendants 1 and 6 were penalized (₹5 lakh and ₹10 lakh respectively), defendant 3 was spared as no fake goods were found on their premises. The judgment emphasizes that trademark strategy not only prevents brand dilution but also ensures financial reparation.

    Tools like TMWala help brands like boAt monitor the market, detect infringing use, and initiate enforcement quickly, reducing legal and reputational risks.

    TRADEMARK EXAMPLES IN INDIA

    These cases offer practical trademark examples in India and show how brands use different strategies to protect their IP. A solid trademark strategy ensures a company can defend its name, symbols, and identity across markets, just like the following brands have done:

    1. TATA – Tata Sons Pvt. Ltd.

    • Protection Method:
      • Actively enforces its mark through legal action against misuse or dilution.
      • Files regular oppositions and maintains a global IP portfolio.
      • Registered under several classes for sectors such as banking, software, telecom, and cars

    2. AMUL – Gujarat Co-operative Milk Marketing Federation

    • Protection Method:
      • Registers brand name, packaging style, mascot (Amul girl), and slogans (like “The Taste of India”).
      • Files lawsuits against deceptive advertising and fake dairy products.
      • Actively monitors unauthorized use in domestic and international markets.

    3. BOAT – Imagine Marketing Pvt. Ltd.

    • Protection Method:
      • Holds registered trademarks for “boAt” logo, stylized font, and product packaging.
      • Won a ₹15 lakh damages award in the Delhi High Court for trademark infringement.
      • Uses market surveillance and court-appointed commissioners to seize counterfeit products.
      • boAt’s enforcement actions are a textbook example of a brand following a smart trademark strategy—not just registering marks but also defending them consistently across platforms.

    4. ZEPTO – Kiranakart Technologies Pvt. Ltd.

    • Protection Method:
      • Holds trademark in Class 35 for online retail and delivery services.
      • Successfully petitioned for cancellation of an unused trademark under Section 47(1)(b) of the Trade Marks Act.
      • Demonstrated market presence, goodwill, and continuous use to establish rightful ownership.
      • This case shows that even newer companies can benefit from a proactive trademark strategy, especially when their operations scale quickly.

    5. AASHIRVAAD – ITC Limited

    • Protection Method:
      • Trademarked product names, distinctive packaging, and design elements.
      • Conducts regular legal monitoring of the FMCG space for similar marks.
      • Have a legal team consisting of IP experts to handle objections, oppositions, and renewals.

    With services like TMWala, even smaller businesses can now access these legal protections for a smart trademark strategy.

    HOW TO TRADEMARK A BRAND NAME IN INDIA

    Registering a trademark in India is essential to protect your business identity and reputation. A well-planned trademark strategy at this stage, especially when done with professional support, helps prevent future legal hurdles and strengthens your application. Here’s a step-by-step overview of how to trademark a brand name in India:

    1. Choose a Unique Mark

    Pick a distinctive name or logo that doesn’t resemble existing trademarks. There are 45 classes: Classes 1–34 for goods and 35–45 for services. Choosing the right class is the first step in any effective trademark strategy.

    2. Conduct a Trademark Search

    Use the official portal of the Controller General of Patents, Designs and Trademarks to search for similar marks. Legal assistance is advisable to avoid objections or rejections.

    3. File the Trademark Application (Form TM-A)

    Costs vary:

    • ₹4,500/₹5,000 for individuals/startups
    • ₹9,000/₹10,000 for companies

    Applications can be filed online (preferred) or manually. Submit identity proof, address proof, trademark image (9×5 cm), and a power of attorney.

    4. Examination & Objections

    The mark moves on to publication if it complies. If not, the Registrar might object, and you would have to answer.

    5. Journal Publication

    The Trademark Journal publishes the trademark. The trademark moves forward with registration if no resistance is submitted within four months.

    6. Trademark Opposition & Hearing

    Both parties provide evidence if an opposition is filed. Following a hearing, the Registrar renders a decision about the application.

    7. Trademark Registration Certificate

    After a successful completion, you can utilize the ® symbol after receiving a Trademark Registration Certificate.

    8. Renewal and Protection

    The registration period is ten years; however, it can be extended forever. But until it is registered outside, it solely safeguards rights within India.

    CONCLUSION

    In conclusion, trademarks play a vital role in protecting a brand’s identity and goodwill in India’s competitive marketplace. An effective trademark strategy not only prevents unauthorized use but also strengthens your market position. The landmark cases involving Flipkart, Zepto, and boAt demonstrate the importance of vigilant enforcement and legal recourse against infringement and misuse. By studying prominent trademark examples and understanding the registration process, businesses can take proactive steps to secure their brands and maintain consumer trust. Registering and defending your trademark not only prevents unauthorized use but also strengthens your market position, ensuring your brand’s longevity and success in India’s dynamic economy.

    Whether you’re just starting or expanding your brand, platforms like TMWala can guide you through the entire trademark process, helping you build a solid trademark strategy that protects your identity.

  • CAN YOU REGISTER YOUR OWN NAME AS A TRADE MARK?

    INTRODUCTION

    The famous Writer Mr. William Shakespeare once said, “What’s in a name?” While poetic in literature, in business and branding, the answer is quite a lot. A name, especially when associated with quality, innovation, or heritage, can become one of a business’s most valuable assets. Think of names like Tata, Mahindra, Raymond, or even Calvin Klein. These aren’t just names, they’re powerful brands.

    But can you legally use your own name as a trademark? Can you protect your first name or surname under trademark law? And what if someone else already did? Does that mean you’re prohibited from using your own name in your own business? Let’s explore how Indian trademark law addresses these questions.

    YES, YOU CAN TRADEMARK YOUR OWN NAME IN INDIA

    As per the Trademarks Act, 1999, names are recognized as valid trademarks provided they meet certain conditions. Earlier, under the Trade and Merchandise Marks Act, 1958, there were stricter rules that disallowed trademarking of surnames and personal names unless they had acquired distinctiveness. But today’s law takes a more flexible approach.

    According to Section 2(1)(m) of the Trade Marks Act, 1999, the definition of a “mark” includes names. The section states “mark” includes a device, brand, heading, label, ticket, name, signature, word, letter, numeral, shape of goods, packaging, or combination of colours or any combination thereof;”

    Means that both first names and surnames can be protected if they’re used to distinguish goods or services and meet the necessary legal requirements, particularly that of distinctiveness.

    Platforms like TMWala can help you determine whether your name is eligible for trademark protection and guide you through the registration process to avoid legal issues that can arise in the future.

    WHAT MAKES A NAME DISTINCTIVE?

    To trademark your name successfully, you must prove that your name has become distinctive. In simple terms, this means that people associate that name specifically with your products or services, and not just with you as an individual.

    There are two main ways a name can gain distinctiveness:

    1. Inherent Distinctiveness – If the name is rare or unique enough to stand out (e.g., Godrej).
    2. Acquired Distinctiveness – If the name has been in use for a long time and has become associated in the public’s mind with your goods or services (e.g., Mahindra).

    This is especially important when the name is a common surname like Sharma, Singh, or Patel. For such names, the law expects the applicant to show that the public now connects the name with a particular product or service, not just a family name.

    THE LEGAL GREY AREA: WHEN TWO PEOPLE SHARE THE SAME NAME

    Trademarking your own name sounds simple, but it can get complicated when someone else is already using the same or a similar name in business. In these cases, the courts look closely at intent, the nature of the business, and the likelihood of confusion.

    Let’s understand this better with a few real-life examples.

    1. Mahindra & Mahindra Ltd. vs. Mahindra Paper Mills

    In this case, the auto and engineering giant Mahindra & Mahindra took legal action against another company, Mahindra Paper Mills, for using the name “Mahindra.”

    Although both companies were using the same surname, the court ruled in favour of Mahindra & Mahindra Ltd., stating that they had built a strong brand over 50 years, and the use of the same name by another company could confuse consumers into thinking the businesses were related. The court concluded that the name “Mahindra” had become more than just a surname; it was a recognised brand and therefore deserved protection.

    2. Precious Jewels v. Varun Gems

    In another case, a jewellery brand named Precious Jewels, which had trademarked the surname “Rakyan,” sued Neena and Ravi Rakyan for using their own names in their business.

    The Delhi High Court initially granted an injunction against the Rakyans. However, the Supreme Court overturned this decision, noting that the Rakyans were running their business honestly and using their own names, which is allowed under Section 35 of the Trade Marks Act, 1999.

    This provision clearly states that you have the right to use your own name in good faith, even if someone else has trademarked it as long as you are not trying to mislead the public or ride on someone else’s brand reputation.

    WHAT DOES SECTION 35 OF THE TRADE MARKS ACT, 1999 SAY?

    This section is a critical part of the law and acts as a defence for individuals who want to use their own names. In simple language, it says:

    “Nothing in this Act shall entitle the proprietor or a registered user of a registered trade mark to interfere with any bona fide use by a person of his own name or that of his place of business, or of the name, or of the name of the place of business, of any of his predecessors in business, or the use by any person of any bona fide description of the character or quality of his goods or services.”

    This means that as long as you’re not pretending to be someone else or misleading customers, you’re allowed to use your name in business.

    WHAT COUNTS AS GOOD FAITH?

    To use your name in a way that’s considered bona fide or “in good faith,” you should:

    • Use your name honestly and do not try to benefit from another brand’s reputation.
    • Make sure that your branding (logo, colour, business nature) is not creating any kind of confusion for the customers.
    • Do not try to license or sell your name to others in a way that exploits another existing brand’s goodwill.

    If the court sees that your intention was to copy or confuse consumers, your defence under Section 35 won’t hold up.

    TMWala can help assess whether your branding and usage align with these principles, ensuring that your application holds up in court if ever challenged.

    CELEBRITY NAMES AND TRADEMARKS

    Many celebrities in India, like Shah Rukh Khan, Sachin Tendulkar, and Anil Kapoor, have trademarked their names to protect their personality rights, especially to stop others from using their names in products, advertisements, or events without their permission. This helps prevent misuse and protects their personality rights. For the general public, however, unless your name is famous, trademark protection will depend largely on how you use it and whether people recognise it as a brand.

    CONCLUSION

    Your name is your identity, and it can be your brand’s identity too. But in business, legal identity matters. So, if you’re planning to build a brand around your name, consider trademarking it early, using it consistently, and ensuring that it stands out in the market. And most importantly, always act in good faith.

    If you’re unsure whether your name can be protected as a trademark or if you’re at risk of infringing someone else’s, it’s wise to consult a trademark expert or legal advisor.

    Your name might just be your biggest business asset; make sure you protect it the right way.

    TMWala can help you navigate this legal landscape from eligibility checks to filing and defending your trademark.

  • Trademark renewal

    Introduction

    A trademark is a distinct sign, symbol, word, logo, or combination thereof that identifies and distinguishes the goods or services of one enterprise from those of others. In India, trademarks’ legal protection and regulation are governed by the Trademarks Act of 1999 and the Trademarks Rules of 2017.

    According to Section 25(1) of the Trade Marks Act, once a trademark is registered, it remains valid for a period of ten years starting from the date it was registered. This can be extended after the expiration of the initial 10 years.

    This article covers the complete process and legal significance of trademark renewal in India under the Trademarks Act, 1999, and the Trademarks Rules, 2017. It explains what trademark renewal entails, its procedure, the documents required, applicable forms and fees, and the legal and commercial benefits of timely renewal. It also highlights the consequences of non-renewal, and the procedure for restoration of a removed trademark, and concludes with the importance of timely compliance to ensure uninterrupted protection of brand rights and reputation.

    What is trademark renewal?

    Trademark renewal is a process by which the protection of a registered trademark is extended beyond its initial term of registration. In India, once a trademark is registered, it is legally protected for a duration of ten years from the date of registration. After this period ends, the trademark must be renewed. Renewal plays a crucial role in protecting the owner’s exclusive rights over the mark and ensuring that the brand remains protected from infringement.

    The procedure for trademark renewal is outlined under the Trade Marks Act, 1999, and the Trade Marks Rules, 2017. To renew a trademark, the owner must submit a renewal application using Form TM-R to the Indian Trademark Registry, along with the prescribed renewal fee.

    In case of failure to renew the trademark within the prescribed time limit, it may be removed from the Trademark Register, and the exclusive rights may lapse. Renewal ensures that the trademark owner enjoys legal protection.

    Procedure for Renewal

    Filing the Renewal Application

    The renewal of a trademark officially begins with the submission of Form TM-R, as prescribed under Rule 57 of the Trade Marks Rules, 2017. Filing can be done through the official IP India portal.

    The applicant must provide certain essential details like the registration number of the trademark and its current legal status. If the renewal is being carried out through a trademark agent or legal representative, a valid Power of Attorney must also accompany the application.

    A trademark renewal application can be filed within one year before the date on which the trademark is set to expire. In case this window is missed, renewal may still be sought within six months, but only by paying an additional late fee. However, if the deadline is missed entirely, the mark becomes vulnerable to removal from the register. If the renewal isn’t filed on time, the applicant must submit a restoration request under Rule 60, which not only increases the expenses but also makes the process more complicated.

    Scrutiny and Examination by the Registry

    After submission, the application is examined by the Trademark Registry to ensure that all legal requirements are satisfied. The Registrar checks whether the application was filed within the permitted time and whether all relevant documents and prescribed fees are in order.

    If the Registry detects any discrepancy, such as an incomplete form, unpaid fees, or classification issues, it may issue a formal objection. The applicant is generally given 30 days to respond. If the response is not submitted on time or the discrepancies are not addressed properly, the application may be rejected or delayed.

    Publication in the Trade Marks Journal

    After the application passes the examination stage, the renewal information is officially published in the Trade Marks Journal. Any third party may file an opposition in 4 months under Section 21 of the Trade Marks Act, 1999. If an objection is filed, the trademark owner will be given a chance to respond. If the matter remains unresolved, the Registrar may call for a hearing and make a decision.

    If no opposition is raised or if any objections are successfully resolved, the trademark renewal proceeds without further hurdles.

    Issuance of the Trademark Renewal Certificate

    After the opposition period and resolution of any related disputes, the Trademark Registry formally issues a Trademark Renewal Certificate. This certifies that the trademark has been renewed for a further 10-year period from the date of the previous expiration.

    Trademark Restoration Following Expiry

    If the renewal deadline and the six-month grace period have both passed without action, the trademark is officially removed from the register. However, the law allows the owner to apply for restoration within one year from the date of expiry. This request must be accompanied along with the prescribed fees, can be done through ipindia.gov.in.

    Once the application is received, the Registrar examines the application. If no discrepancy is found or if the Registrar is satisfied, the request for restoration is accepted, and the trademark is published in the Trademark Journal.

    If no opposition is filed or if the applicant overcomes any objections, a Restoration Certificate is issued.

    Legal Consequences of Non-renewal

    If a trademark is not renewed on time, it can be removed from the register, leading to the loss of exclusive rights to use the mark. Without renewal, the owner cannot enforce trademark rights or prevent others from using a similar mark. The trademark becomes vulnerable to being registered by others, weakening the original owner’s position. While restoration is possible within one year of removal, it’s not automatic and requires valid reasons. Overall, non-renewal risks losing legal protection.

    Documents required

    1. Form TM-Ris is the prescribed form for renewal of a trademark under the Trade Marks Rules, 2017. It must be filed six months before the expiry of the current registration or within a grace period of six months after the expiry (with applicable fees).
    2. Power of Attorney is required only when the renewal is filed by a trademark attorney or an authorized agent; a power of attorney is submitted to establish their authority to act on behalf of the owner.
    3. Proof of identity and address: Though not always mandatorily providing documents is recommended.
    4. Copy of the Trademark Registration Certificate.
    5. Affidavit of Use: The Registrar may request an affidavit to ensure genuine intent or prior use of the trademark.

    Forms and fees

    Form NamePurposePhysical feeOnline feeIndividuals/ start-ups (online only)
    TM-RRenewal of trademark registration (with/without modification or advertisement before renewal)₹10,000₹9,000₹4500 per class
    TM-R With surchargeRestoration of a removed trademark within 6 months after expiry (includes renewal)₹10,000+ renewal fee₹9000+ renewal fee₹9000 per class
    TM -18Affidavit of use (if required by Registrar)–––
    TM-U  Change in name/address/agent details during renewal₹1,000₹900₹450
    TM-MMiscellaneous requests (likean extension of time or correction of a clerical error)₹1,000      ₹900₹450

    Benefits of renewal

    Legal protection- Renewal ensures that the trademark remains legally protected under the Trademarks Act, 1999. If the trademark isn’t renewed, the legal protection it offers lapses, leaving it vulnerable to misuse or infringement by others.

    Preservation of Exclusive Rights – A trademark owner has certain exclusive rights, which are rights, though can be preserved by renewing the trademark.

    Strengthening of Legal Position –The trademark owner has the right to initiate legal action in case of infringement. Renewal of a trademark also provides this right, which strengthens the owner’s position in defending their mark and seeking remedies for any unauthorized use.

    Maintaining Brand Identity- Every business has a distinct brand value in the marketplace. Without renewal, the mark may lose its distinctiveness, potentially eroding the brand’s reputation and value in the market.

    Business and Commercial Benefits A renewed trademark enables the trademark owner to leverage their intellectual property for business opportunities such as licensing, franchising, and brand expansion. A valid trademark is an asset that increases business credibility and value.

    Conclusion

    Trademark renewal is a crucial step in preserving a brand’s legal identity and commercial strength. Under the Trade Marks Act, 1999, and the Trade Marks Rules, 2017, renewal ensures that a registered trademark continues to enjoy statutory protection, allowing the proprietor to maintain exclusive rights and prevent misuse by others.

    Missing the renewal timelines can lead to the cancellation of a trademark, weakening the brand’s legal standing and market position. Though restoration is allowed within a limited period, it involves additional costs and formalities.

    Timely renewal is a simple yet vital legal action that protects years of brand building, reputation, and investment. For any business or individual relying on their trademark, proactive compliance with the renewal process is not just good practice but is essential for long-term brand security.

    References

    1. The Trade Marks Act, 1999– https://www.ipo.gov.in/tmrAct_1999.pdf
    2. The Trade Marks Rules, 2017– https://www.ipo.gov.in/TMRules_2017.pdf
    3. IP India – Trade Marks Section– https://ipindia.gov.in/trade-marks.htm
    4. Trademark Renewal in India, iPleaders– https://blog.ipleaders.in/trademark-renewal-india/
    5. Trademark Renewal Procedure, LawBhoomi-https://lawbhoomi.com/trademark-renewal-procedure-in-india/
    6. Trademark Forms and Fees, IP India – https://ipindia.gov.in/form-and-fees-tm.htm
    7. Trademark JournalSearch, IP-India https://search.ipindia.gov.in/tmrpublicsearch/jsp/journal/journal_search.jsp

  • USING INTELLECTUAL PROPERTY AS A COLLATERAL FOR LOANS

    INTRODUCTION

    The transforming economy of India has brought intellectual property to the forefront of economic development. With the growing number of new startups and technology-driven enterprises, the role of intangible assets like trademarks, trade dress, copyright, and patents has become crucial. The exclusive IP rights of IP owners have become economic tools for them, that help them to grow their business and attract more investment. 

    In a country like India, where start-ups often don’t get good funds and access to capital is hard, IP-backed finance helps them explore all the options they can have to build their business. The IP-backed finance is a concept that uses intellectual property rights as collateral for loans, which help the business to get finance globally.

    In this article, we discuss what IP-backed finance entails, its types, benefits, challenges, and notable case studies along with how platforms like TMWala can play a pivotal role in facilitating IP-driven financing models.

    IP-BACKED FINANCING IN INDIA

    In India, IP-backed financing has gone through a long journey with several developments, including the National IPR Policy and provisions in the SARFAESI Act, 2002, which recognised intangible assets as “Property”. 

    The government, recognizing the growing importance of intellectual property, has also taken various steps to promote development in the financial department, which includes IP as a financial asset. The National IPR policy encourages IP securitization to support commercialization. Despite this developing approach, India has yet to witness large-scale success in IP-backed financial transactions.

    TMWala, as a comprehensive IP monetization and management platform, can assist startups and businesses in understanding the value of their intellectual property assets and prepare them for leveraging these assets in financial transactions. With expert tools for IP valuation and portfolio structuring, such platforms can bridge the gap between legal recognition and commercial viability.

    TYPES OF IP ELIGIBLE FOR FINANCING

    IP assets for finance can be categorized into two types:

    1. Formal IP

    This covers those IP assets that are easily monetized, identified, and legally protected. Intellectual property, like industrial design, copyrights, trademarks, and patents are example of such assets. These are formal IPs that have legal status, and investors are more likely to accept them.

    2. Informal IP (or Know-how)

    In this, assets like trade secrets, supplier chains, procedures, and brand reputation are included as informal intellectual property. Although they are very helpful on practical grounds, the financial institution finds them less appealing because they are difficult to measure and do not have the same legal protection as formal IP assets do. While approving loans, financial institutions in India have mostly taken formal intellectual property into account. But if we talk about international practice, even informal IP assets are considered as reliable source of security.

    BENEFITS OF IP-BACKED FINANCING

    1. Expanding Access to Capital

    IP-backed finance provides a new way for Indian start-ups to raise money if they are having trouble meeting the standard collateral requirements. This is especially important in the biotech and technology industries, where intellectual property (IP) has significant value, and where physical assets may be scarce.

    2. Diversification of Collateral Pools

    By integrating intangible assets into its investment frameworks, IP-backed financing enables financial institutions to diversify their risk. Additionally, this change is in line with contemporary valuation methods and worldwide best practices.

    3. Protecting Personal Assets

    Founders are typically expected to provide personal guarantees. By reducing the need for such guarantees, using intellectual property as collateral protects individual wealth while facilitating corporate growth.

    4. Appreciable Nature of IP

    In contrast to structures or machinery, intellectual property (IP) can increase in value over time as a result of branding, market share, or possible licensing. A powerful patent or trademark can raise a company’s value or produce long-term royalties, making it a more desirable asset for banks.

    CHALLENGES IN IP-BACKED LENDING

    Even with the obvious advantages, several obstacles still prevent IP-backed funding from being widely used in India:

    1. Complex and Subjective Valuation

    A combination of technical, legal, and business knowledge is needed to value intangible assets. An IP asset’s value is greatly influenced by some factors, including lifetime, competitive advantage, market demand, and possible litigation. Indian banks frequently lack the internal resources necessary to carry out these complex appraisals.

    2. Rapid Technological Obsolescence

    Existing patents may soon become outdated due to the rapid pace of invention in fields like biotechnology and information technology. Therefore, lenders run the risk of their intellectual property depreciating throughout the loan, which would make recovery more difficult.

    3. Legal and Regulatory Ambiguity

    The legal issues are brought to light by the Canara Bank v. N.G. Subbaraya Setty case. The Supreme Court demonstrated the limitations of conventional legal interpretations when it decided against the bank acquiring a trademark because it was not covered by the initial security agreement. Furthermore, enforcement is complicated by regulatory inconsistencies between the SARFAESI Act and the Banking Regulation Act.

    4. Weak IP Enforcement and Market for Resale

    IP rights enforcement in India can be expensive and time-consuming. Additionally, there is a lack of development in the IP asset secondary market. The difficulty of making money out of intellectual property in default situations is shown by SBI’s unsuccessful Kingfisher trademark auction.

    5. Monitoring and Maintenance

    IP used as collateral must be routinely refreshed and safeguarded against infringement by lenders. The operational complexity and danger are increased by this continuing obligation.

    CASE STUDIES FROM INDIA AND ABROAD

    1. Kingfisher Airlines Trademark (India)

    Following the airline’s credit default, the State Bank of India attempted to auction off the “Kingfisher” trademark. Some IP assets are illiquid, as evidenced by the auction’s failure despite a well-known brand because of overvaluation and poor market perception.

    2. Canara Bank v. N.G. Subbaraya Setty (India)

    This lawsuit revealed legal loopholes about IP assignment. The court emphasized the necessity for strong contractual clarity by ruling that banks could not take over and use trademarks after default if they were not initially included as security in the arrangement.

    3. Cambridge Display Technology (UK)

    Using its portfolio of polymer OLED patents, CDT was able to raise $15 million from UK banks. The outcome of this case shows how, with the right valuation and legal frameworks in place, strategic intellectual property can draw in investors.

    4. Masai Group International (Singapore)

    The business raised money from an international bank after declaring bankruptcy by using its proprietary Masai Barefoot Technology as collateral. This acquisition demonstrates how, with the correct framework, troubled businesses may still unlock IP value.

    THE ROAD AHEAD: MAKING IT WORK IN INDIA

    India is on the verge of an economic revolution due to the introduction of intellectual property in the financial system. It has enormous potential to become a leader in IP-backed finance as one of the biggest start-up ecosystems in the world. However, several improvements are necessary for this to become widely accepted:

    • Standardized Valuation Guidelines: To create uniform frameworks appropriate for Indian lenders, regulatory bodies must interact with specialists in IP valuation.
    • Dedicated IP Financing Institutions: India requires organizations or divisions within banks that are exclusively focused on IP-backed lending, much like venture capital firms.
    • Judicial Clarity: Conflicting decisions can be avoided by using clear and current legal interpretations, such as harmonizing the SARFAESI Act with the Banking Regulation Act.
    • Marketplaces for IP Exchange: The creation of IP auction platforms or exchanges may contribute to the IP market’s liquidity, allowing lenders to reclaim assets after a default.
    • Awareness and Training: Banks need to spend money on employing and educating professionals in market intelligence, legal enforcement, and intellectual property valuation.

    TMWala can be a central player in this transformation by acting as a one-stop solution for IP discovery, valuation, protection, and commercialization giving confidence to both innovators and financiers.

    CONCLUSION

    In order to spur innovation and expansion, the Indian economy is depending more and more on intangible assets. Practical difficulties still exist even if IP-backed funding has a legal basis and policy goal. Financial institutions, regulators, valuation specialists, and legal experts must work together to bridge the gap between theoretical promise and practical implementation.
    With the correct changes, India can establish a robust ecosystem for IP funding that will help it become a global leader in IP commercialization while simultaneously bolstering its aspirational start-up culture. India can open up new funding channels and create a resilient, knowledge-driven economy by acknowledging intellectual property as an economic asset.

    With the right partners like TMWala assisting in IP due diligence, strategic valuation, and asset maintenance, India has the potential to lead globally in IP-driven finance while energizing its vibrant start-up ecosystem. Recognizing IP as an economic asset will open new funding channels and pave the way for a resilient, knowledge-powered economy.

  • UNDERSTAND YOUR RIGHTS AS A CONTENT CREATOR

    INTRODUCTION

    Imagine you’re a content creator who has put your heart and soul into the art you have made. Finally, people start recognizing it, but suddenly, somebody else posts your work claiming it is theirs, and they are earning a profit from it. How would you feel? Sadly, this is the reality for many small content creators in India.

    That’s why understanding your rights as a content creator becomes crucial. The Indian copyright law is your savior as it protects your creativity and ensures you are fairly rewarded for your work financially and morally.

    This article is for all the content creators out there. Here we are going to explain the law, rights, challenges you may face, the authorities, and other relevant factors, particularly the 2012 amendment, so you can understand everything from the basic to the latest update.

    TMWala will help you to resolve all queries regarding your rights and liabilities as a creator.

    WHAT IS COPYRIGHT AND WHY DOES IT MATTER?

    The copyright law of India gives creators exclusive rights over their original work. The rights it gives are as follows:

    • Make copies
    • Sell or Share
    • Turn into another format
    • Perform or display the work on public platforms such as YouTube, Instagram, etc.
    • License or assign it to others

    One thing about copyright law is you don’t need to enforce it by doing something; it automatically applies as soon as your work is created and fixed in a tangible form, which means written down, recorded, or saved digitally. But yes, registering your work is useful for legal enforcement.

    WHO QUALIFIES AS A CREATOR?

    You will be considered a creator under copyright law if you are creating original work in any of the following areas: –

    Whether you’re a full-time professional or doing it as a hobby, the law protects your work as long as it’s original and in physical form.

    YOUR KEY COPYRIGHT RIGHTS AS A CREATOR

    1. Right to Reproduce

    As a content creator, you hold an exclusive right to make copies of your original work. Expect you, no one else has the right to make any kind of copy of your work without your permission.

    2. Right to Distribute

    As a creator, you hold absolute right to decide where you want your work to be published or shared, whether in printed form (physical copy) or on online streaming platforms (digital copy). You can also set the terms and conditions regarding access to your content.

    3. Right to License and Assign

    You can:

    • License your work: You can allow someone to use it, but you keep ownership.
    • Assign your rights: at your own will, you can transfer ownership completely.

    One excellent method to receive royalties while maintaining your rights is through licensing. For instance, you will be compensated each time your song is streamed if you license it to a music app.

    UNDERSTANDING ROYALTY RIGHTS: THE 2012 AMENDMENT

    The Copyright (Amendment) Act of 2012 was a turning point for creators, especially for those who are in the entertainment industry, as it added a high level of protection for writers, musicians, and performers.

    What Changed?

    Before the 2012 Amendment, once the creator has submitted their work to the producers, they lost all their rights to the work and cannot use it in the future; the benefit will go to the production company and producers rather than the artist. But now the 2012 Amendment made it mandatory for creators to receive royalties, even after assigning the rights.

    Key Benefits:

    • Composers and lyricists must receive royalties whether their music appears in movies, television shows, or online.
    • Scriptwriters and authors must receive payment if their labour is profited from or reused.
    • Performers such as actors and singers are entitled to royalties from their recorded performances.

    Various people try to deceive the artist by making such contracts that take all the rights of the artist to use their work, but as per the law, these rights cannot be waived, even if the contract says otherwise.

    MORAL RIGHTS: PROTECTING YOUR REPUTATION

    Beyond money, creators also have moral rights, which remain with them even after they assign or license the work.

    Content creation is more than just about earning its passion for some people. Beyond legal rights, creators also have moral rights, which remain with them even after they assign or license their work to someone else.

    1. Right of Paternity (Attribution)

    As a creator, you have the right to be known as the creator of your work; no one else can claim ownership of your original creation or remove your name from it without your permission.

    2. Right of Integrity

    You have the power to prevent people from misrepresenting, mutilating, or distorting your work in a way that damages your reputation or changes the meaning you intended.

    CASE STUDY:

    The well-known artist sued the government in AMARNATH SEHGAL V. UNION OF INDIA: –

    The Indian government appointed renowned sculptor Amarnath Sehgal to paint a mural at Vigyan Bhavan, which he finished in five years and had on exhibit in 1962. The mural was carelessly taken and stored by the government during renovations without his consent, causing harm. Sehgal filed a lawsuit against the government, claiming that copyright laws had violated his moral rights. The Court decided in his favor, stressing that a creator’s moral rights are upheld long after the work is sold and that it is an infringement of those rights to destroy or mutilate their creation.

    HOW TO ENFORCE YOUR RIGHTS

    1. Register Your Work

    Registering your work is not mandatory, but it surely helps when you face a legal battle, it helps in proving that you are the original owner of your work.

    2. Cease and Desist Notices

    If you see someone using your work without your permission, as a creator you have the right to send a cease and desist letter. It is a formal notice that is sent to the user and asks them to do so, as they are infringing on your rights. This letter is enough to resolve the issue without going to court.

    TMWala will make sure to do the compliance with the cease and desist letter, to ensure that no one will infringe on your rights as a creator.

    3. Legal Action

    But if the infringement continues even after a cease & desist letter, then you can:

    • File a civil suit for damages and injunctions.
    • Pursue criminal penalties like fines or imprisonment for wilful infringement.

    4. Authorities

    Managing your royalties manually can be overwhelming. That’s where copyright societies come in.

    As a layman, understanding and managing royalties manually can be tough and overwhelming. That’s where copyright societies come in to help:

    • Keeping track of he use of your work across platforms
    • Collect royalties on your behalf
    • Distribute payments fairly to all members

    CHALLENGES FACED BY CREATORS

    1. Complex Legal Language

    Many artists find it difficult to understand the legalities in contracts and legislation. It’s crucial to:

    • Speak with a copyright attorney.
    • Use clear-cut manuals or go to seminars

    2. Enforcement in the Digital Age

    Copying, sharing, and altering digital content is simple. It can be difficult to keep an eye on your work online, but reverse image search and Google Alerts can assist in identifying misuse.

    3. Power Imbalances

    Big production houses or brands often have more legal and financial power. To deal with them, you must be aware of a few things:

    • Understand your rights
    • Never sign contracts without reading
    • Work with legal experts for negotiations

    CONCLUSION

    Your work is your identity as a content creator, and it should be safeguarded. Indian Copyright Act gives you the ability to keep ownership, collect royalties, and safeguard the integrity of your works, particularly since the 2012 Amendment. Understanding your rights is the first step to establishing a safe and long-lasting creative career, regardless of your artistic medium: music, writing, cinema, or digital art. Keep yourself updated, register your work, get legal counsel when necessary, and never undervalue your uniqueness. But as a layman, understanding all this can be overwhelming, but not to worry, experts like TMWala are there to help you protect your legal as well as moral rights.

  • HOW INDIAN STARTUPS USE OFFSHORE ENTITIES BEFORE RETURNING HOME FOR AN IPO

    INTRODUCTION

    The past decade has marked a significant evolution in the Indian startup ecosystem, which now stands as the third largest in the world. With over 100,000 startups and more than 100 unicorns, Indian startups are increasingly competing on the global stage. In their early stages, many founders chose to incorporate offshoremainly in jurisdictions like Delaware or DIFCto attract international investors, simplify compliance, and access global capital.

    However, this trend is gradually shifting. As SEBI IPO guidelines become more startup-friendly and Indian stock markets experience record retail participation, a growing number of companies are now choosing to reverse-flip and establish a more straightforward onshore company structure in India. This is especially relevant for those preparing for an IPO in India, where regulatory clarity and investor interest are stronger than ever.

    This article explores why startups incorporate offshore, the emerging trend of onshoring, how regulatory reforms are enabling this shift, and ultimately, how to take a company public in Indiacovering the advantages, trade-offs, and latest developments shaping the future of Indian entrepreneurship.

    INDIAN STARTUP ECOSYSTEM

    India is the third-largest startup ecosystem globally, with over 100,000 startups and more than 100 unicorns. Early-stage startups often incorporated offshore (in Delaware or DIFC) to attract global investors and simplify compliance.

    However, with SEBI IPO guidelines becoming more startup-friendly and Indian stock markets seeing record participation, many startups are now reverse-flipping back to India.

    In 2024, Ernst and Young reported a preference from their clients for a simply structured Indian entity, reflecting the ecosystem’s maturity and growing global investor confidence in onshore models.

    TMWala supports startups through this transition, offering tailored legal, structuring, and compliance services that make reverse-flipping and domestic expansion smoother and more efficient.

    WHY INCORPORATE OFFSHORE?

    Many Indian entrepreneurs in their early stages choose to incorporate as holding companies offshore, leaving the Indian entity as a wholly owned subsidiary. This tactic is motivated by multiple factors:

    1. Investor-Friendly Jurisdictions: International venture capitalists and institutional investors are drawn to companies established in Delaware or the DIFC because they adhere to well-known corporate governance standards. Additionally, these areas provide advantageous departure tax treatment; for instance, eligible U.S. investors may get up to 100% tax-free exit gains.
    2. Low Compliance Burden: These jurisdictions provide fewer filings, easier and quicker incorporation procedures, and more lenient foreign direct investment (FDI) regulations than India.
    3. Flexible Licensing Options: Low-cost registration permits and startup-specific company kinds are available in jurisdictions like Delaware and the DIFC. Startups seeking to access Middle Eastern funding and international investors now find the DIFC in particular to be an alluring entry point.
    4. Investor Onboarding: Usually, the offshore parent company receives investments from all equity investors. In addition to providing investors with predictable legal rights in offshore countries, this streamlines the cap table.

    HOW TO TAKE A COMPANY PUBLIC IN INDIA

    The increasingly startup-friendly SEBI IPO standards must be followed by startups wishing to go public in India. The usual path consists of:

    1. Changing to an Indian holding structure, frequently by flipping in reverse.
    2. Adhering to the transparency and corporate governance guidelines set forth by SEBI.
    3. Including legal counsel, merchant bankers, and underwriters in the IPO preparation process.
    4. Submitting to SEBI a Draft Red Herring Prospectus (DRHP).
    5. Finishing investor education and roadshows prior to price and allocation.

    THE ROLE OF FINANCIAL CENTRES LIKE DIFC

    For businesses looking to raise capital from Middle Eastern and international investors, DIFC offers a strategic substitute for Delaware. It is becoming more popular because:

    • English common law-based legal frameworks
    • Affordable choices for startup licensing.
    • In most situations, there are no corporate tax or capital gains tax advantages.
    • A strategic location that connects the financial markets of Asia and the West.

    IPO IN INDIA: GROWING MOMENTUM FOR REVERSE FLIPS

    In order to get ready for their Indian IPOs, a number of well-known businesses have already flipped their offshore structures. While some companies, like Pine Labs and Razorpay, are still going through the process, others, like PhonePe, Groww, and Pepperfry, have finished their migrations. Similar actions are apparently being considered by companies such as Clevertap, Meesho, Kreditbee, Eruditus, Zepto, Flipkart, and Khatabook.

    Despite high costs, the reverse flip is gaining momentum:

    • To finalize the transfer, PhonePe paid the Indian government almost $1 billion in capital gains tax.
    • Groww paid over $160 million in taxes and experienced large restructuring expenses.
    • After its transfer from the US to India is complete, Razorpay is anticipated to pay more than $200 million.

    SEBI IPO Guidelines

    1. Eligibility:
      • The company must have had net tangible assets worth at least ₹3 crore in any 3 out of the last 5 financial years.
      • The company must have made an average pre-tax profit of ₹15 crore or more, calculated over any 3 out of the last 5 financial years.
      • Option to list on the Innovators Growth Platform (IGP) for startups without profits.
    2. Minimum Public Shareholding (MPS):
      • 25% public shareholding post-IPO (10% allowed for large issues, with a 3-year plan to reach 25%).
    3. Lock-in Period:
      • Promoters: 18 months for 20% shareholding.
      • Pre-IPO investors: 6 months lock-in.
    4. Disclosure:
      • File a Draft Red Herring Prospectus (DRHP) with SEBI.
      • Must disclose financials, risks, business model, and promoter details.
    5. Book-Building:
      • Common pricing mechanism.
      • 75% of shares to Qualified Institutional Buyers (QIBs) for book-built IPOs.
    6. Innovators Growth Platform (IGP):
      • For tech startups backed by institutional/angel investors.
      • Relaxed norms on profitability and disclosures.
    7. Intermediaries:
      • Must appoint merchant bankers, legal advisors, registrars, and auditors.

    OFFSHORE VS. ONSHORE COMPANY

    The majority of Ernst & Young’s startup clients, according to a 2020 report, favoured holding companies with headquarters in Singapore or the US, with an Indian subsidiary managing operations that were predominantly conducted in India. However, that desire has changed by 2024:

    Ernst and Young stated in 2024 that their clients preferred an Indian entity with a straightforward structure, which also appears to be preferred by authorities. Additionally, according to industry reports, when it comes to important operating permits, like those required in the fintech sector, the RBI and other regulators favour domestic companies over their international counterparts.

    ROLE OF REGULATORY REFORMS AND ONSHORING

    The Merger Rules amendment is a component of a larger wave of legislative changes intended to entice companies to relocate back to India. Key shifts include:

    • There are now more Indian companies with market values over $1 billion than ever before.
    • In 2024, there were over 10 crore unique investors in the Indian stock market, up from just 3 crores in 2020, indicating a sharp increase in retail involvement.

    Regulators are seeking to further streamline the procedure in order to facilitate onshoring. In a paper titled “Onshoring Indian innovation to GIFT IFSC,” the International Financial Services Centres Authority outlined the necessary policy adjustments to facilitate relocation. These consist of:

    • A time-bound, tax-free redomicile procedure
    • Greater latitude in the tools a start-up can employ.
    • Easier exit norms for M&A.
    • Forums are specifically designed to resolve disputes within the business law ecosystem.

    CONCLUSION

    The landscape for Indian startups is rapidly maturing, with global investor confidence now extending beyond offshore holding structures to favour more straightforward, locally incorporated entities. The evolving Indian startup ecosystem, supported by policy reforms and record market participation, is creating strong incentives for companies to return home through reverse flips.

    Thanks to increasingly favourable SEBI IPO guidelines, startups are finding it easier to prepare for an IPO in India, where domestic capital markets offer not just liquidity but also higher valuations. Regulatory bodies like SEBI, RBI, and the Ministry of Corporate Affairs are also encouraging this transition by simplifying compliance, improving M&A frameworks, and facilitating re-domiciliation.

    While offshore incorporation once provided a strategic edge in attracting capital, the balance is now shifting. The offshore vs onshore company debate is no longer about compliance alone’s about strategic alignment with future growth, public market access, and long-term value creation.

    For ambitious founders and their investors, understanding how to take a company public in India has become more crucial than ever. With the right structure, timing, and regulatory alignment, Indian startups can now dream of going global while staying rooted at home.

    With expertise in cross-border structuring, compliance, and IPO readiness, TMWala empowers startups to navigate these complex transitions smoothly.

  • GST COMPLIANCE CHANGES EFFECTIVE JULY 2025: AUTO-LOCK, TIME BAR, & NEW E-WAY BILL PORTAL

    INTRODUCTION

    The GST return filing rule changes from July 2025 bring significant shifts in compliance requirements for businesses across India. Major updates include the GSTR-3B Auto-lock, strict 3-year GST return filing limit, late GST return penalty 2025and classification of time-barred GST returns. The introduction of e-way bill 2.0 ensures smoother logistics, while broader GST return filing changes 2025 mandate real-time accuracy. Taxpayers must utilize the GSTR-1A correction for July 2025 effectively and act on the guidance for how to file pending GST returns 2025.

    Non-compliance may lead to input tax credit blocked returns, and with the expected e-invoicing new threshold of 2025, even more businesses must digitize their processes. This guide about GST compliance will let you know all the information about the new rule change for GST return filing. Through automatic invoice matching, compliance monitoring, and timely warnings that make sure companies don’t miss deadlines or get out of compliance with GST requirements, TMWala can help businesses adjust to these changes.

    GST RETURN FILING RULE CHANGES FROM JULY 2025

    As of July 2025, a new rule for GST compliance has been introduced. These updates were made to improve GST compliance, such as GST return filing, revenue, time limit regarding this all and other GST-related compliances. Among the most impactful changes are the GSTR-3B, auto-lock, a strict 3-year return filing limit, and the launch of E-Way Bill 2.0. For more details, kindly refer to:

    Advisory regarding non-editable of auto-populated liability in GSTR-3B- Goods & Services Tax (GST) | News and Updates

    GSTR-3B AUTO LOCK

    A major update, “GST Return Filing Rule Changes from July 2025”(to be filed in August 2025) is the GSTR-3B, auto-lock of Table 3, which contains outward supply details.

    What’s Changing?

    • Until now, taxpayer can make amendments in Table 3 of the GSTR-3B, but now, after the changes, even if the data is automatically entered from GSTR-1 or IFF didn’t match their internal records.
    • From July 2025, any kind of manual editing by the taxpayer is disabled.
    • Content in Table 3 of GSTR-3B will now be auto-lock, sourced directly from:
      • GSTR-1 (Outward Supplies)
      • GSTR-1A (Corrections to GSTR-1)
      • IFF (for quarterly filers in QRMP scheme)

    Exceptions:

    • Reverse charge mechanism (RCM) liabilities can still be manually entered.
    • GSTR-1A Correction July 2025: Only one correction per return period is allowed, and it must be made through GSTR-1A before filing GSTR-3B.

    With this modification, there will be no more differences between summary returns and outgoing supply returns, and fewer audit flags will be raised when there are inconsistencies.

    3-YEAR GST RETURN FILING LIMIT

    A 3-year GST return filing limit has been set. Now, the GST portal will not allow return filing beyond 3 years from the due date, starting August 1, 2025. This applies to all types of GST returns, regardless of whether tax was payable or not.

    Covered Returns:

    • GSTR-1 (Outward Supplies)
    • GSTR-3B (Summary Returns)
    • GSTR-4 (Composition Taxpayer Return)
    • GSTR-5, 5A (Non-resident and OIDAR services)
    • GSTR-6 (Input Service Distributor)
    • GSTR-7, 8 (TDS/TCS)
    • GSTR-9, 9C (Annual Returns)

    The GST portal will automatically reject filing if returns are submitted after the three-year deadline. After these changes, the return filing became time-barred.

    TIME BARRED GST RETURNS

    Now, the taxpayers must file all pending GST returns due before August 1, 2022, by July 31, 2025, to avoid becoming permanently time-barred. For more details, kindly refer to:

    Consequences of not filing a return on time:

    • The taxpayer will not be able to file the return, even with the penalty.
    • Forfeiture of Input Tax Credit (ITC) related to those periods.
    • The taxpayer will receive to face assessment; tax notices, or must face legal action against them.
    • And due to continuous non-compliance, the GST registration of the taxpayer will also be cancelled.

    To remain in compliance, nil refunds must be submitted before the deadline, even if you made no sales or transactions.

    Businesses could use platforms like TMWala, which manage pending returns and automatically alert users of deadlines, to mitigate these risks.

    E-WAY BILL 2.0

    To reduce downtime and ensure seamless movement of goods, the E-Way Bill 2.0has been introduced. The official site is mentioned herewith:

    Key Features:

    • Infrastructure for the main portal’s backup
    • The two portals’ automatic real-time synchronization.
    • Beneficial during instances of high traffic or technical difficulties.
    • Especially helpful for carriers handling high shipment frequencies and heavy users.

    This guarantees seamless logistics operations and continuous e-way bill creation for products valued at over ₹50,000, whether for supply, inward purchase, or branch-to-branch transfers.

    GST RETURN FILING CHANGES 2025

    The taxpayers must reconsider their return filing tactics in light of the GST return filing changes for 2025.

    The key additions are:

    • Now, the manual modifications in GSTR-3B Table 3 are not allowed.
    • The only way for corrections is GSTR-1A.
    • All GST returns must be filed within a 3-year time limit.
    • To work better with the changes, switch to E-Way Bill Portal 2.0.
    • Stricter rules by GST authorities are resulting in less inconsistent data
    • Possible future auto-locking of ITC details from GSTR-2B.

    To adjust to these new changes, the businesses need to train their personnel, start using real-time invoice matching tools, and update their compliance platforms on a regular basis.

    By integrating your accounting data, finding discrepancies, helping with GSTR-1A repairs, and guaranteeing the timely submission of previous returns, all from a single platform, TMWala streamlines this procedure.

    GSTR-1A CORRECTION JULY 2025

    GSTR-1A becomes crucial when GSTR-3B, auto-locked. Before filing GSTR-3B, this return permits changes to previously filed GSTR-1 or IFF data.

    How It Works:

    • Adjust GSTR-1A to reflect any discrepancies in tax rates or outgoing supply quantities.
    • Must be submitted before filing GSTR-3B of the same period
    • Each return period is limited to one correction cycle.
    • The recipient’s GSTIN cannot be changed using this method.

    To prevent inaccurate GSTR-3B filings, buyers must track rejected invoices in real time and take prompt corrective action.

    LATE GST RETURN PENALTY 2025

    The system will permanently ban return filing if you fail the three-year deadline. Penalties could consist of:

    • Input Tax Credit loss for periods that were not filed.
    • Penalties under Sections 125 or 122 for failing to file returns or pay taxes
    • Late fees under Section 47 of the CGST Act, depending on the kind of return and tax due.

    To avoid this, make sure all backdated filings are done by July 31, 2025.

    HOW TO FILE PENDING GST RETURNS 2025

    Take prompt action if you have any past-due returns, particularly those from Financial Year 2017–18 to Financial Year 2021–22.

    1. Consolidate data with GSTR-1, IFF, and GSTR-3B after reviewing books.
    2. Correct inaccuracies on GSTR-1A prior to final filing.
    3. Before July 31, 2025, file all outstanding returns.
    4. Use a real-time IMS system to keep an eye on inconsistencies.
    5. Educate teams on the new regulations and the possible consequences of failing to file.

    INPUT TAX CREDIT BLOCKED RETURNS

    If previous returns are not filed before the completion of the 3-year deadline, the taxpayers’ working capital and tax liability will be immediately impacted.Hence, the related Input Tax Credit would be denied.

    This is especially concerning for businesses with:

    • Missed IFF/GSTR-1 submissions.
    • Discrepancies between GSTR-2B and GSTR-3B.
    • Incomplete purchase records or ITC reconciliation.

    Denial of ITC to your purchasers due to late or non-filing may also result in problems with your reputation and commercial relationships.

    E-INVOICING NEW THRESHOLD 2025

    The E-Invoicing turnover level is anticipated to decrease even more in 2025, although this has not been determined yet. More enterprises will be required to use electronic invoicing, particularly small and medium-sized organizations.

    If implemented:

    • Businesses must generate e-invoices in real-time for B2B transactions.
    • Integration with IRP portals and syncing with GSTR-1 will become mandatory.
    • Failure to comply could result in invalid invoices, blocked ITC, and supply chain disruptions.

    Start preparing your systems to adopt e-invoicing if your turnover is near the anticipated threshold (likely ₹5 Cr or less).

    CONCLUSION

    With the rollout of the GST return filing rule changes from July 2025, businesses must act swiftly to align with the stricter compliance framework. The GSTR-3B auto lock, 3 year GST return filing limit, and time barred GST returns make timely and accurate filings more critical than ever. Embracing tools like E-way bill 2.0,late GST return penalty 2025 and leveraging GSTR-1A Correction July 2025, are essential to avoid disruptions. To safeguard working capital and ITC eligibility, follow the steps under how to file pending GST returns 2025 and prepare for the likely e-invoicing new threshold 2025. Proactive compliance today will help businesses avoid input tax credit blocked returns and maintain seamless operations in the evolving GST landscape.

    Platforms like TMWala, which include intelligent compliance tools, GST checks, return filing automation, and reconciliation capabilities to guarantee complete alignment with the new GST standards, are crucial in assisting firms in adapting.

  • DEPRECIATION RATES AS PER INCOME TAX ACT: COMPLETE LIST FOR FY 2024-25

    INTRODUCTION

    A key accounting concept that enables companies to spread out the expense of physical assets over their useful lives is depreciation. It shows how assets deteriorate, wear down, or become obsolete over time. The article mentions the depreciation rates for 2024–2025. The depreciation rate as per the Income Tax Act varies based on the kind of asset and is crucial for determining permitted deductions for tax purposes. Businesses can more effectively manage their financial statements and tax obligations by being aware of the several methods of calculating depreciation.

    Depreciation can be calculated in a variety of ways, each having unique uses and advantages. The Written Down Value method (WDV method) and the straight-line method are the most widely utilized. By adding a specified percentage to the asset’s book value annually, the WDV method of depreciation causes depreciation expenses to be higher in the early years and lower in the later years. The straight-line approach, on the other hand, uniformly distributes the depreciation over the asset’s useful life.

    The way the depreciation expense is allocated over time is the difference between the straight line method and the WDV method. The WDV approach produces a declining charge over time, whereas the straight-line method yields a constant amount of depreciation.

    Understanding the formula for calculating depreciation, which typically includes the asset’s cost, residual value, and useful life, is crucial to calculating depreciation under any method. Accurate financial reporting and adherence to accounting and tax laws are further guaranteed by identifying the type of depreciation that applies to a particular asset.

    By automating tax computations, streamlining depreciation tracking, and ensuring adherence to the most recent Income Tax Act regulations, TMWala helps businesses save time and lower the possibility of mistakes.

    DEPRECIATION

    Depreciation, as used in taxation, is the gradual decline in an asset’s value brought on by wear and tear, obsolescence, or use. Businesses can reduce their taxable profits by deducting this value decline as a cost under the Income Tax Act.

    DEPRECIATION RATES AS PER THE INCOME TAX ACT, 1961

    Depreciation is a concept that allows companies to allocate the cost of both tangible and intangible assets over the expected course of their useful life. Depreciation is a tax-deductible expense under the Indian Income Tax Act of 1961, which lowers taxable income and, in turn, the tax obligation.

    Depreciation under the Income Tax Act:

    • Section 32:Permits the depreciation of both tangible and intangible assets used for business or professional activities.
    • Rule 5 of the Income Tax Rules, 1962: Outlines the depreciation rates for various asset classifications.

    Depreciation Rates for FY 2024-25: Key Categories

    According to the Income Tax Act, the Income Tax Department classifies assets, each of which has a predetermined rate of depreciation. The rates are summarized as follows:

    ASSET TYPEDEPRECIATION RATE
    Residential Buildings5%
    Commercial Buildings10%
    Furniture and Fixtures10%
    Plant and Machinery15%
    Computers (including software)40%
    Motor Vehicles (used for business purposes)15%-30%

    TMWala can offer integrated solutions that are suited to the asset structure of your company for the precise and current application of these rates in your accounting system.

    TYPES OF DEPRECIATION

    The book value of an asset can be determined using various methods and types of depreciation expenses. The most commonly used depreciation methods include:

    1. Straight-line: It is the most straightforward and often used technique for figuring out depreciation. Throughout the asset’s useful life, the annual expense amount under straight-line depreciation remains constant.
    2. Double declining balance: It causes a greater quantity to be spent in the early years of an asset’s useful life as opposed to the later years.
    3. Units of production: This type of depreciation is based on the actual usage of the asset, such as the total number of hours it is operated or the total number of units it produces.
    4. Sum of years digits: This method is a form of accelerated depreciation, where a larger portion of the asset’s cost is expensed in the earlier years of its useful life, with smaller amounts recorded in the later years.

    FORMULA FOR CALCULATING DEPRECIATION

    The amount of depreciation can be calculated using four main formulas. Let’s talk about each of them:

    METHODS OF CALCULATING DEPRECIATION

    Different assets may have different methods of calculating depreciation and usable lives. For accounting and taxation purposes, depreciation methods may vary based on the industry and the type of asset. The two most commonly used techniques are the Straight-Line Method and the Written Down Value Method.

    In addition to differences in depreciation rates, the primary distinction between the methods prescribed under the Companies Act and the Income Tax Act lies in the calculation approach.

    Methods of depreciation as per the Companies Act, 1956:

    • Straight Line Method
    • Written Down Value Method

    Methods of depreciation as per the Companies Act, 2013:

    • Straight Line Method
    • Written Down Value Method
    • Unit of Production Method

    Methods of depreciation as per the Income Tax Act, 1961:

    • Written Down Value Method (Block-wise)
    • Straight Line Method for Power Generating Units

    WDV METHOD OF DEPRECIATION

    The Written Down Value Method, or we can say WDV method of depreciation, is one of the most often used techniques for determining depreciation. The amount depreciated for any asset under this system is charged at a predetermined rate, although it is based on the asset’s declining value each year. Depreciation is charged on the negative side of the Profit and Loss A/C as a loss after being subtracted from the written-down value (i.e., cost less depreciation) of an asset. Because the depreciation is applied on the book value rather than the asset’s cost, the relevant asset experiences an uneven annual depreciation.

    DIFFERENCE BETWEEN STRAIGHT LINE METHOD AND WDV METHOD

    The difference between the SLM and WDV methods is explained below:

    1. SLM is a type of depreciation where a specific amount is written off annually, distributing the asset’s cost evenly across its life years. The Written Down Value (WDV) method applies a fixed rate of depreciation to the asset’s book value each year, resulting in decreasing depreciation amounts over the asset’s useful life.
    2. Depreciation is computed using the original cost in the straight-line method. Conversely, the written-down value approach bases the depreciation computation on the asset’s written-down value.
    3. Under the Straight-Line Method (SLM), the annual depreciation expense remains constant throughout the asset’s life. In contrast, the depreciation amount under the Written Down Value (WDV) method decreases each year.
    4. The asset’s book value is entirely written off using the straight-line technique, meaning that it is worth zero or its salvage value. On the other hand, the written-down value approach does not entirely write off the asset’s book value.
    5. The amount of depreciation is initially lower for a company that uses the SLM technique and higher for a company that uses the WDV method.

    CONCLUSION

    Depreciation is essential to accounting and taxation because it enables companies to lower taxable income and spread out the cost of an item over its useful life. Businesses must comprehend the depreciation rate as per the Income Tax Act to maintain compliance and correct financial reporting. The permitted deductions based on the type of asset are determined in part by the applicable rates, such as those shown for FY 2024–2025.

    Depending on the asset’s characteristics and the company’s financial plan, there are several methods of calculating depreciation, and each has a distinct function. Among these, the WDV method of depreciation applies a fixed rate to the asset’s declining balance annually frequently employed under the Income Tax Act. This approach differs from the straight-line approach, which levies a fixed annual fee.

    The main distinction between the straight line method and the WDV method is how depreciation is applied, either on the asset’s initial cost or its declining book value, which leads to either increasing or decreasing depreciation charges over time. To choose the approach that best suits their operational and reporting requirements, businesses must be aware of this disparity.

    It is crucial to use the correct formula for calculating depreciation, which changes based on the method used, to apply these approaches accurately. Last but not least, choosing the right kind of depreciation guarantees accurate asset assessment and adherence to internal and legal accounting regulations.

    Asset management and financial reporting are now more efficient than ever thanks to technologies like TMWala, which allow firms to automate depreciation tracking, maintain tax compliance, and generate reports instantaneously.

  • HOW TO FILE FSSAI ANNUAL RETURN: STEP-BY-STEP PROCESS

    INTRODUCTION

    For all Food Business Operators (FBOs) licensed by the Food Safety and Standards Authority of India (FSSAI), filing the FSSAI yearly return is a necessary compliance obligation. To avoid fines and preserve regulatory compliance, it is essential to timely file the FSSAI returns, Form D1 FSSAI for general food enterprises and Form D2 FSSAI for dairy businesses, regardless of whether you are engaged in the production, import, export, or handling of food items.

    The FSSAI annual return filing procedure will be explained in this guide, along with particular instructions on how to fill FSSAI Form D1, what information must be recorded, and the dates by which the FSSAI annual return is due date. Comprehending the detailed procedure will guarantee a seamless and precise filing of your returns, whether you’re submitting them online via the FoSCoS portal or offline by mail or email.

    Do you need professional assistance? For complete compliance and peace of mind, TMWALA can assist you in precisely and promptly filing your FSSAI yearly filings.

    After reading this article, you will understand all you need to know about  FSSAI annual return filing, including deadlines and data requirements to keep your company in compliance and avoid penalties.

    TYPES OF FSSAI ANNUAL RETURN

    Making sure all necessary information is correctly documented in Form D1, FSSAI is crucial when filing your FSSAI annual return. All Food Business Operators (FBOs) who manufacture, handle, import, or export food goods are required to fill out this form. A thorough explanation of the data that needs to be entered, while understanding how to fill out the FSSAI Form D1, is provided below in case:

    • FBO Name and Address: By the FSSAI license, clearly disclose the Food Business Operator’s full address and legal name.
    • FSSAI Licence Number: Provide the 14-digit number that was assigned to your company. Make sure your licensing information is up to date and valid.
    • Comprehensive Statement on Food Product Activity: During the fiscal year, you must provide a statement detailing the amounts of food products handled, produced, imported, and exported. This section ought to contain:
    • Food Product Name: Enumerate every food item that your company has produced, handled, imported, or exported.
    • Packaging Size: Indicate the dimensions and kind of each package, including bulk, can, bottle, and other packaging units.
    • Quantity in Metric Tonnes: Indicate each product’s total quantity in metric tonnes.
    • Monetary Value: Indicate the items’ worth for each item on the list, ideally in Indian Rupees (INR).
    • Additional Information for Imports and Exports: Form D1 FSSAI must include the following extra information if your company imports or exports food products:
    • Port or Importing/Exporting Country Name: Indicate the country engaged in the trade or the point of entrance or departure.
    • Kilogram (kg) quantity: Indicate in clear terms how many kg of goods are being imported or exported.
    • CIF/FOB rate per kilogram or unit of packing: Indicate the price per kilogram or unit of packing on a FOB (Free on Board) or CIF (Cost, Insurance, and Freight) basis.
    • Total Value: Indicate the entire trade value of the products that were imported or exported.

    These specifics aid in guaranteeing food items’ traceability and transparency throughout the supply chain. To prevent inconsistencies, it’s crucial to consult your company’s records, sales invoices, import/export paperwork, and inventory logs know how to fill FSSAI Form D1. Since the data on Form D1 must match the information in your current FSSAI license, accuracy is crucial.

    The Food Safety and Standards (Licensing and Registration of Food Businesses) Regulations, 2011 mandate that Food Business Operators (FBOs) engaged in the production, handling, or processing of milk and milk products file the half-yearly return Form D2 FSSAI. The following details provide you with a clear idea of how to fill Form D2 FSSAI if you’re preparing this return and want to know what information is required:

    • FBO Name and Address: Exactly as stated in your FSSAI license, provide the food business’s entire legal name and registered address.
    • Number of FSSAI Licence: Enter your current 14-digit FSSAI license number to guarantee proper identification and police tracking.
    • Specifics of the Purchase of Milk: Complete details regarding the milk that was sourced throughout the reporting period are needed for this section:
      • Type of Milk (cow, buffalo, mixed, etc.).
      • Total Quantity Procured (in MT).
      • Total Fat Content (in MT).
      • Total SNF (Solids-Not-Fat) Content (in MT).
      • Price per Kg of Milk, along with specific fat and SNF percentages.
    • Information Regarding Purchases of Milk Products: Provide the following information with every purchase of items made from milk:
      • The milk product’s name, such as cheese, butter, or cream.
      • Purchase Source (dairy or supplier).
      • The total amount bought.
      • Average Fat and SNF percentages.
      • The closing stock balance and the quantity used throughout the period.
    • Reconstitution Information: The amounts and procedures used to reconstitute any milk productssuch as milk powder combined with water to create liquid milkmust be properly recorded.
    • Milk Products Sold, Manufactured, and Stock Position: Provide details on:
    • Sales, Production, and Stock Status of Milk Products: Give information about:
      • The quantity of each milk product produced.
      • The quantity that was sold.
      • Opening and closing holdings in stocks.
    • Outsourcing Details: Indicate whether any portion of the processing of milk or its transformation into other products was contracted out to other dairy companies. Give specifics about those arrangements.
    • Milk Marketing Information: Describe the marketing strategies used for milk, including distribution data and channels (retail, wholesale, direct to consumer, etc.).
    • Manufacturing and Export declaration: Provide a thorough declaration that details.
      • The quantities of milk products produced and exported (in tons).
      • The half-yearly reporting period’s sale value

    FBOs contribute to maintaining adherence to food safety regulations and guaranteeing data transparency throughout dairy operations by making sure these details are accurately filled out on Form D2 FSSAI. Avoiding inconsistencies and possible fines requires careful preparation of this return.

    FSSAI ANNUAL RETURN FILING PROCEDURE

    The FBOs can file the FSSAI returns, i.e. form D1 and D2 either online or offline. To file the FSSAI returns online, FBOs can log into the FoSCoS portal, fill out the respective form and submit them.

    TMWALA provides expert help for submitting FSSAI yearly returns both online and offline. We guarantee that your forms are accurate and completed on time, regardless of whether you’re working with large volumes of data or intricate import/export records.

    The following is the offline procedure for filing the annual returns:

    • Download and print the Food Safety and Standards (Licensing and Registration of Food Businesses) Regulation, 2011 (the “Regulations”), including forms D1 and D2.
    • Complete the form with your information.
    • The food business owners can email or mail the completed form to the relevant food licensing authorities in their jurisdiction after filling it out.

    The information included on FSSAI returns must be consistent with the information stated and supported by the FSSAI license. If there are any differences in the specifics, the FBOs should adjust the FSSAI license accordingly.

    DUE DATE FOR FILING RETURNS

    The deadline for filing Form D1 of the FSSAI annual return is May 31 of each financial year. Form D2 must be submitted by October 31 for April–September and by April 30 for October–March for dairy operations. Penalties are avoided and compliance is ensured by timely filing.

    PENALTY FOR NON-COMPLIANCE

    According to the Regulations, when FBOs do not file the FSSAI returns within the prescribed due date, a fine of Rs. 100 will be imposed on them every day the default continues, starting from the next day of the due date.

    CONCLUSION

    In addition to being required by law, FSSAI annual return filing on time and accurately is essential to preserving openness and confidence in the operations of your food business. FBOs may make sure they adhere to compliance requirements and stay out of needless trouble by being aware of the FSSAI annual return filing procedure. It’s critical to remain up to date on the appropriate data to report and the FSSAI annual return due date for each form, whether you’re filing Form D1 FSSAI annually for general food enterprises or Form D2 FSSAI half-yearly for dairy operations.

    You have been guided through the entire process by this guide, which includes information on how to fill FSSAI Form D1, paperwork requirements, and online and offline filing alternatives. In addition to safeguarding your license, adhering to FSSAI annual return standards enhances your company’s reputation over time.

    Always verify your entries, make sure they match the information on your FSSAI license, and FSSAI annual return filing on time.

    Let TMWALA take care of your FSSAI filings from beginning to end. Your company remains audit-ready all year long with professional assistance, prompt notifications, and documentation supported by compliance.

  • EARLY HARVEST AGREEMENT IN INDIA

    INTRODUCTION

    A trade agreement known as an Early Harvest Agreement (EHA) enables two nations to address important trade issues and liberalize tariffs on a limited range of commodities and services. As a measure to boost confidence, it aids in creating momentum and trust in larger trade talks. The EHA is regarded as a crucial first step toward a comprehensive and long-term trading relationship between India and the EU.

    The EHA is anticipated to address high-priority topics such as tariff reductions, intellectual property rights, government procurement, and non-tariff barriers since both parties understand the strategic and financial benefits of deeper relations. Although these fields have historically presented difficulties for bilateral trade, they also present excellent chances for collaboration. The India-EU EHA has the potential to increase exports, draw in investment, and strengthen economic resilience for both sides as the dynamics of global trade change and supply chain resilience becomes a critical issue.

    The latest rush of meetings highlights the continued urgency of the negotiations and the common commitment to perhaps reaching a deal by July 2025. If successful, the EHA might serve as a model for India’s other trade negotiations, such as those with the UK and Canada, and establish the foundation for a comprehensive free trade agreement. Emerging firms that facilitate global trade with data-driven solutions, like TMWala, stand to gain from the easier access to markets that these agreements offer.

    WHAT IS AN EARLY HARVEST AGREEMENT?

    An early harvest trade is an agreement between two countries that liberalises the tariffs on certain goods and services under an FTA. It’s primarily an agreement that helps in building trust between two trading partners (two countries involved in trade relations), which eventually helps both countries to build a strong trade relationship.

    In the present case of India and the European Union, an early harvest agreement will help to unlock various trade benefits for both countries while making way for broader and long-term trade corporations.

    KEY COMPONENTS OF EARLY HARVEST AGREEMENTS

    1. Reductions in Tariffs

    The main aim of early trade harvest is to reduce tariffs on goods and services or liberalise tariffs. In the present case, both India and the European Union are trying different ways to reduce tariffs on some selected goods and services. For example, reducing tariffs on textiles, leather goods, pharmaceuticals, and agricultural products. These reductions will help Indian goods export to access in European market. Similarly, the European Union may reduce duties on its automobiles, wine, spirits, and industrial goods entering the Indian market.

    2. Intellectual Property Rights (IPRs)

    Intellectual property rights have been a major issue in establishing trade relations between the countries, as both countries follow different rules for intellectual property rights. India has flexibility related to IPR in the pharmaceutical and technology sector, whereas the European Union typically much rigid approach to IPR rights in line with domestic laws. But under the early harvest agreement, there is a possibility that both countries will go for a mutually accepted approach.

    3. Government Procurement

    The next focus of these agreements is the government procurement agreements, which are awarded by public authorities for goods, services, and infrastructure. The European Union seeks more transparency and access to India’s vast public market. India has always shown openness to such agreements, as it is traditionally proactive in this sector. In the current early trade agreement, a limited agreement on procurement norms may be achievable.

    4. Non-Tariff Barriers

    Trade is frequently hampered by non-tariff barriers (NTBs), which include technical rules, quality requirements, and licensing processes. In order to improve predictability and simplicity of doing business between the two regions, the early harvest agreement may seek to streamline these procedures and harmonize certain criteria.

    INDIAN NEGOTIATORS HEAD TO BRUSSELS AS FTA TALKS GAIN URGENCY

    A team of Indian officials, led by chief negotiator Satya Srinivas, has departed for Brussels to have a meeting on the India-European Union early harvest agreement under the free trade agreement (FTA), leading to the urgency of the matter. Just last week, the eleventh session of negotiations took place in New Delhi, and the swift follow-up round in Brussels highlighted how quickly the talks are progressing. Official sources state that the agreement’s early harvest component will cover a wide range of priority issues that go beyond goods tariffs, including rules of origin, government procurement, intellectual property rights, trade remedies, non-tariff barriers, and sanitary and phytosanitary (SPS) measures.

    Both parties agree that these topics are crucial to the short-term agreement and crucial components of the larger FTA framework. The ambitious and multifaceted nature of the relationship is shown by the entire agreement, which, once finished, is anticipated to consist of 23 chapters addressing broader subjects, including trade and sustainable development, transparency, good regulatory standards, subsidies, and anti-fraud provisions.

    PHASED FTA APPROACH AMID GLOBAL TRADE SHIFTS

    The goal of the early harvest agreement with the EU is to pave the way for a comprehensive free trade agreement. Prime Minister Narendra Modi and European Commission President Ursula von der Leyen established a year-end goal for completing the free trade agreement during their February visit to India with a group of commissioners. Both parties decided to complete the agreement in stages due to the short schedule and complicated challenges. This strategy also responds to the uncertainties surrounding international trade, especially considering the disruptions caused by former US President Donald Trump’s tariff measures.

    STRATEGIC SIGNIFICANCE FOR BOTH PARTIES

    For India:

    • Boosting exports European Union is India’s third-largest trading partner, accounting for approximately 11% of its total commerce. A positive trade agreement might significantly boost India’s exports to Europe.
    • Attracting Investment: Furthermore, a short-term agreement might increase investor confidence, especially in the technology, clean energy, and industrial sectors.
    • Diversification: In light of global supply chain uncertainties and concerns about China, India has the chance to diversify its import and export markets through closer ties with the EU.

    For the EU:

    • Access to a Large Market: With 1.4 billion inhabitants and a growing middle class, India is a significant market for EU businesses.
    • Strategic Partnership: The EU sees India as a democratic counterbalance in the Indo-Pacific region and considers it a key player in global climate and digital governance.
    • Supply Chain Resilience: The agreement backs EU efforts to reduce excessive dependence on some countries and build strong, diversified supply chains.

    CHALLENGES AHEAD

    While the goal of concluding an early harvest agreement by July is ambitious, challenges remain:

    • Diverging Regulatory Standards: The regulatory frameworks in India and the EU differ, particularly when it comes to areas like food safety, pharmaceuticals, and data protection.
    • Domestic Political Pressures: Stakeholders concerned about job losses or a decline in competitiveness may oppose trade liberalization in both India and EU member states.
    • Geopolitical Uncertainties: Negotiations may be complicated or diverted by international events like the Russia-Ukraine war, interruptions in the Red Sea, and elections in important nations.

    Despite these hurdles, negotiators on both sides are reportedly working around the clock to iron out differences.

    INDUSTRY AND POLICY CIRCLES

    The possibility of an interim agreement has been generally embraced by Indian industry groupings. “An early harvest agreement with the EU will not only give a strong signal to global investors but also enhance India’s export competitiveness,” according to the Federation of Indian Export Organizations (FIEO).
    Meanwhile, EU trade officials have emphasized that the agreement needs to be “ambitious and balanced.” Additionally, India is becoming more widely acknowledged in European corporate circles as a crucial trading partner due to its market potential and geopolitical alignment.

    TMWala, known for its work in export logistics optimization and trade compliance support, has also voiced optimism about the EHA, noting that reduced non-tariff barriers could significantly accelerate export readiness for mid-sized Indian exporters.

    NEXT STEPS AND THE ROAD AHEAD

    A breakthrough in economic relations between India and the EU would result from the early harvest agreement if discussions proceed as scheduled and it is finalized by July 2025. Over the following year or two, the agreement might be finalized as the basis for a comprehensive free trade agreement.
    If this staged strategy is successful, it may serve as a template for other economic alliances India is pursuing, including those with the UK and Canada.

    CONCLUSION

    An important turning point in their developing trade relationship is the proposed Early Harvest Agreement between the EU and India. The deal establishes the groundwork for a more extensive Free Trade Agreement soon by tackling important topics like intellectual property rights, government procurement, tariff liberalization, and non-tariff barriers. In the face of a rapidly shifting global trade landscape, it reflects a common strategic goal to improve supply chains, foster mutual growth, and deepen economic ties.

    Even if there are still issues, including political sensitivities, regulatory differences, and geopolitical tensions, the recent negotiations’ progress shows that both parties are very committed. The EHA could set a precedent for India’s future economic interactions with other international partners and act as a spur for wider trade cooperation if it is successfully completed by the July 2025 deadline. Finally, the agreement could lead to increased stability and resilience in international trade, in addition to improving bilateral trade and investment.

    This agreement creates new chances for companies like TMWala, which help exporters navigate regulations and enter new markets, to grow and reach a larger clientele.