Union Budget 2025 Highlights & Announcements: Middle class-friendly Budget focuses on consumption boost, no income tax payable up to income of ₹12 lakh in New Tax regime

Union Budget for 2025-26 largely focused on ease of doing business, rationalisation of the personal income tax slabs to encourage domestic consumption, further push to the flow of institutional financial resources to farmers, MSMEs and exports and above all maintaining financial discipline. While there are several proposals like Prime Minister Dhan-Dhaanya Krishi Yojana- Developing Agri Districts, a comprehensive multi-sectoral Rural Prosperity and Resilience Programme , etc to lift the rural economy, the increase in the loan limit under the Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakhs for loans taken through the KCC and India Post coupled with India Post Payment Banks to act as a catalyst for the rural economy by providing services like DBT, Cash out, EMI pick up, credit services to micro enterprises, insurance and assisted digital services, etc have direct involvement of the banking sector. Proposal to support National Cooperative Development Corporation (NCDC) for lending operations for the co-operative sector is expected is positive for the rural economy.

Banks play a key role in funding MSME sector. There are several proposals in the budget such as increase in the investment and turnover limits for classification of all MSMEs to help the grow further, enhancement of credit guarantee cover to MSMEs, Startups and well -run exporter MSMEs, customised credit cards with a limit of Rs 5 lakhs for micro enterprises registered on Udyam Portal etc are positive measures for the MSMEs and are expected to help the banks to further increase the funding to these sectors. 

Enhancing the limit of Foreign Direct Investment in the insurance sector from the existing 74% to 100% to those companies which invest the entire premium in India, partial credit enhancement facility for corporate bonds for infrastructure by NaBFID, proposal to develop Grameen Credit Score framework by Public Sector Banks to serve the credit needs of the SHG members and people in rural areas, formation of high level committee for regulatory reforms to review all non-financial sector regulations to improve governance, investment friendliness index of states etc augur well with the needs of the financial sector. 

Since government capex is the growth driver for the domestic economy, the government has allocated Rs.11.21 trillion towards infrastructure which is expected to encourage domestic growth. Rationalisation in income tax slabs is expected to add more resources in the hands of people which could trigger increase in domestic consumption. Fiscal deficit for FY 25 is kept at 4.8% and projected to reduce further to 4.4% for FY 26 clearly following the fiscal discipline strategy. The government has announced Rs 14.82 lakh crore gross market borrowing for FY26, as compared to Rs 14.01 lakh crore for FY25. However, net market borrowing is lower at Rs 11.54 lakh crore for FY26 as compared to Rs 11.63 lakh crore in FY25. 

In short, the budget has relied more on domestic drivers for growth and at the same time ensured to maintain fiscal discipline which could help the monetary policy as well.

“A very solid budget that focusses on accelerating growth, by increasing consumption, providing a boost to employment and the MSME sector, while remaining fiscally prudent. The lower income tax outgo will give a fillip to consumption and incentives to labour intensive sectors will boost employment. A slew of measures to the MSME sector - the backbone of employment and growth – including easier credit access and guarantees, and support to women led enterprises is encouraging. The infrastructure buildout has been widened to include connectivity, new age sectors and skilling/education which have multiyear multiplier effects and aid employment. These measures will surely put India on course to becoming a $4 tn economy by March 2026.”

“The recent budget measures reaffirm the government’s commitment to strengthening the MSME ecosystem, a critical pillar of India’s economy. By enhancing credit guarantees and increasing classification thresholds, these reforms will unlock new opportunities for small businesses, enabling them to scale operations with greater financial flexibility. NBFCs and HFCs will play a crucial role in ensuring these benefits reach MSMEs efficiently, bridging credit gaps and driving financial inclusion.

Particularly commendable is the focused push toward women entrepreneurship. The introduction of a dedicated scheme for first-time women entrepreneurs from underserved communities is a game-changer, fostering inclusive growth and financial independence. Additionally, providing term loans to high-performing MSME exporters will fuel competitiveness and global expansion.

By improving access to credit, reducing borrowing costs for startups, and introducing tailored financial solutions for micro-enterprises, these initiatives collectively create a more resilient and future-ready MSME sector. With their agility and deep market expertise, NBFCs and HFCs will be instrumental in supporting small businesses and homebuyers alike, strengthening India’s journey toward self-reliance and sustained economic progress.”

“Budget 2025 marks a transformative step for the insurance sector in India, particularly with the introduction of 100% FDI. This reform is set to drive deeper market penetration by attracting greater capital inflows, fostering competition, and integrating global best practices.

The government’s commitment to strengthening healthcare infrastructure, including the establishment of Day Care Cancer Centres in district hospitals, is a significant step toward improving critical care access. At SBI General, we remain dedicated to bridging the protection gap by ensuring wider penetration of health insurance across urban and rural India.

Additionally, the proposed tax reforms, including TDS rationalization and increased thresholds for senior citizens, will empower taxpayers and promote greater financial inclusion. Collectively, these initiatives lay the foundation for a robust insurance ecosystem, supporting the government’s vision of ‘Insurance for All’ by 2047.”

Amongst multiple key aspects, the Union Budget lay much emphasis on two key areas— Marine industry and attracting more FDI in India.

The extension of Basic Customs Duty (BCD) exemption on raw materials, components, and consumables for shipbuilding and shipbreaking for another 10 years is a significant boost for the maritime industry. Given the long gestation period of shipbuilding, this move will enhance competitiveness and drive growth. As a leading insurance broker specializing in P&I, marine, and shipping risks, we see this as a vital step that will accelerate industry expansion and increase the need for comprehensive marine insurance solutions.

The increase in FDI limits for the insurance sector to 100% is a defining reform that will reshape the industry by unlocking greater capital inflows, fostering global best practices, and driving innovation. Crucially, this enhanced limit applies to companies that invest the entire premium in India, ensuring that foreign capital directly fuels domestic economic growth.

Additionally, the review and simplification of existing guardrails and conditions for foreign investment will create a more investor-friendly environment, firmly positioning India as a leading global insurance market. Furthermore, with improved financial access and a stronger economic environment, we anticipate a significant boost in consumption, further strengthening economic momentum.

It wouldn’t be wrong to say that this is a transformational moment for the sector, enabling insurers and brokers to provide more customized, efficient, and technology-driven risk solutions that shall cater to the country’s evolving aspirations.

“We welcome the government’s decision to increase the FDI limit in the insurance sector from 74% to 100%. This progressive move will drive greater capital inflows into the sector, also improve insurance penetration.

A key highlight of the Union Budget is the significant relief for the middle class, with no income tax payable on earnings up to ₹12 lakh under the new tax regime. This translates into greater income in the hands of people, empowering individuals to invest in financial security tools like health insurance. At ManipalCigna Health Insurance, our focus remains on India’s missing middle population, and this initiative aligns perfectly with our commitment to expanding access to quality healthcare protection.

Additionally, the government’s plan to establish 200 daycare cancer centres in district hospitals by 2025-26 is a commendable step toward strengthening healthcare accessibility. These centers will bridge critical care gaps, ensuring timely and affordable treatment for cancer patients across India. We look forward to supporting initiatives that enhance healthcare access and financial protection for all.’’

“The combination of revised MSME definition along with Nov, 2024 govt notification on mandatory onboarding of entities with turnover over Rs 250 crores will unlock efficient cash flow management for MSMEs, empowering them to scale to new heights. This move will encourage broader participation from the 7000+ entities with turnover range between Rs 250 – 500 crs.”

Corporate leaders representing various sectors in Kerala termed the Union Budget presented by Finance Minister Nirmala Sitharaman very positive and growth oriented.

The direction of the budget is towards the goal of Vikasit Bharat, said Vinod Manjila, Chairman CII Kerala State Council. “A very positive budget that takes care of the diverse sectors of the economy including agriculture, middle class, exports, start-ups and ease of doing business”, he said.

CII Kerala hails Union Budget for its focus on diverse sectors

Kerala corporate leaders praise Union Budget for growth focus, highlighting benefits for agriculture, MSMEs, startups, and healthcare sectors.

Finance Minister Nirmala Sitharaman on Saturday presented Union Budget 2025-26, envisaging an expenditure of ₹50,65,345 crore, an increase of 7.4 per cent over the current fiscal.

The 2024-25 expenditure (Revised Estimates) is ₹47.16 lakh crore.

“The Union Budget 2025 is a prudent plan that aligns with India’s immediate need for consumption boost and medium-term focus on enhancing manufacturing competitiveness. It accelerates the clean energy transition with strong support for clean tech manufacturing and nuclear energy. The ₹20,000 crore allocation for nuclear energy and proposed legislative reforms demonstrate a forward-thinking approach to energy security and decarbonization. The National Manufacturing Mission and adjusted duties on batteries are key steps toward strengthening domestic clean energy manufacturing. Additionally, the target of 10,000 fellowships for research, including clean tech, positions India to lead in sustainable energy while boosting both economic and environmental resilience.”

“Mrs. Nirmala Sitharaman’s Union Budget 2025-26 has placed a renewed focus on enhancing healthcare facilities for cancer treatment by announcing the establishment of day-care cancer care centres in all district hospitals within three years. The government would do well to reskill the hospital teams to run the day care cancer centres. We also hope that the budget would pave the way for affordability of robotic surgery.

What will come as an immediate relief for cancer and other critical disease patients and their families is the announcement to reduce the basic customs duty on 36 lifesaving drugs, especially considering that India ranks third in cancer cases worldwide, after China and the USA, according to the Global Cancer Observatory (GLOBOCAN).

The healthcare industry hopes that the announcement of adding 75,000 medical college seats over the next five years will place much-needed emphasis on producing medical graduates who have access to advanced, new-age tools and have demonstrated mastery in the use of AI and other novel techniques that transcend traditional approaches deliver better patient outcomes.“

The Centre has allocated ₹74,226 crore for the Department of Drinking Water and Sanitation in the Union Budget 2025-26, with most of it allotted to the Jal Jeevan Mission which aims to provide tap water connections to rural households.

The allocation marked a substantial rise from the revised estimates of ₹29,916 crore for 2024-25 for the department.

Budget 2025 allocates ₹74,226 crore for drinking water and sanitation

Union Budget 2025 allocates ₹74,226 crore for water resources, with focus on Jal Jeevan Mission for rural tap water connections.

“The Finance Minister delivered a growth-oriented budget while staying firmly on the path of fiscal consolidation pegging the fiscal deficit for FY 26 at 4.4%. A massive ₹1 lakh crore in personal tax relief directed at the middle class, will boost consumption, and enable households to invest in their financial security. 

Initiatives around channelizing credit to the MSME sector with focus on labour intensive manufacturing, facilitating investments, smoothening the processes in the exports arena, reforms around the ease of doing business with an overall emphasis on minimizing onerous regulations augur well for the economy and its participants.

At Tata AIA, we stay committed to partnering with Individuals and Enterprises in their growth journey through our life insurance solutions.”

“We are pleased to see that most of the population will benefit greatly from the new personal income tax structure, which eliminates taxes up to ₹12 lakhs. With real estate being a consistently preferred investment sector, this reform is expected to drive higher demand in the industry. Among traditional investment options, plots stand out as a secure choice within the real estate sector, as they do not depreciate like other assets that deteriorate over time. Overall, this budget has facilitated greater access to property ownership, significantly boosting demand for houses, plots, and the real estate industry.”

To enhance regional air connectivity, Centre will launch a modified UDAN (Ude Desh ka Aam Naagrik) scheme to connect 120 new destinations as well as ferry four crore passengers in the next 10 years, proposed Finance Minister Nirmala Sitharaman in Union Budget FY26 speech.

businessline was first to report that Finance Minister is considering to propose the new iteration of the scheme, unofficially known as “UDAN 2.0” which intends to provide a cost-effective means to develop and operate over 100 underutilised airstrips in the country.

Union Budget FY26: Government aims to connect 120 destinations through UDAN

Centre to launch modified UDAN scheme to connect 120 new destinations, ferry four crore passengers, boost regional air connectivity.

“The Focus Product scheme for leather and footwear sector scheme announced, will enable the Indian footwear, leather and leather products industry to reach its envisaged turnover target of $47 Billion by 2029-30 from the present turnover of $23.7 Billion and will lay a very strong foundation for the sustainable growth of the industry. This will help in the socio economic development in the country. We thank the Prime Minister, Union Minister for Commerce & Industry and Union Minister of Finance for announcing this largest funding support scheme which covers all thrust areas necessary for sustainable growth. This will be a game changer for the industry.”

Seeking to hand-hold exporters braving global headwinds, the Finance Minister has announced an `export promotion mission’ with an outlay of ₹2,250 crore which will provide assistance in areas such as accessing export credit and tackling non-tariff barriers in foreign markets. 

“We will set up an export promotion mission, with sectoral and ministerial targets, driven jointly by the ministries of commerce, MSME, and finance. It will facilitate easy access to export credit, cross-border factoring support, and assistance for MSMEs in tackling non-tariff measures in overseas markets,” Finance Minister Nirmala Sitharaman said in her Union Budget 2025-26 speech on Saturday.

Union Budget 2025: Export promotion mission with ₹2,250 crore outlay to facilitate exports, says FM

Finance Minister announces export promotion mission with ₹2,250 crore outlay to assist exporters in accessing credit and tackling barriers.

“Budget walked the talk on fiscal consolidation without losing sight of the much-needed consumption boost needed to stimulate economic growth. Government has been doing heavy lifting on public capex. Now, spurring consumption by putting more money in the hands of taxpayers is a step in the right direction. Government’s intention of investing in economy, people and innovation was the need of the hour to harness India’s demographic edge. Set-up of Fund of Fund aimed at start-ups, along with a focus on MSMEs fosters entrepreneurship and could transform India from a nation of job-seekers to job-creators. Simplification of tax structure and ease of compliance should aid in investor confidence and stimulate both, domestic and foreign investments. While short-term volatility could be par for the course due to the current global economic backdrop, the long-term direction rooted in policy prudence and support for growth should bolster Destination India’s credentials for foreign and domestic investors alike.”

The Budget for FY26 gave a healthy boost to spending on distributed renewable energy (RE) segment with budget estimates totalling ₹22,600 crore, a massive over two-fold surge from budget estimates (BE) for FY26, and a 66 per cent jump from the revised estimates (RE).

The expansion of the distributed renewable energy (RE) segment, which aims to install solar power on 1 crore low income households and proliferation of solar power in villages, is the key to boost consumption of clean energy sources as well as help households access low cost power sources both for urban and rural poor.

Union Budget 2025: Allocation to distributed renewable energy gets a healthy boost

Boost in budget for distributed renewable energy in FY26, focusing on solar power installations for low-income households.

“The Union Budget for FY2026 has treaded a fine line between fiscal prudence and providing a thrust to growth. The Government of India’s proposals aimed at boosting both consumption and investment would boost domestic economic activity, protecting the growth outlook amidst global uncertainties. While the fiscal deficit and borrowing numbers are along expected lines, the tax revenue assumptions appear a tad optimistic in light of the revenue foregone from the rationalisation of income taxes.”

“After a long time, the middle class has a reason to cheer. By moving the tax exemption to Rs.12 lacs, the current income tax proposal is going to leave a lot of money in the hands of the middle class. While the government is foregoing Rs.1 lac crore of Income Tax, we think the increase in consumption can help offset some of the exchequer loss. On the fiscal side a budget estimate of 4.4% is tad on the higher side. I think the government recognizes the recent slowdown and the importance of govt expenditure to maintain the growth momentum. Bringing the gig workers into its notice, atleast through some medical relief, is a step in the right direction as 1 crore gig workers is a very large segment of the population and also the fastest growing portion of the employment pool. Overall the budget has balanced the large goals of Economic Development and the Social responsibility of the government.”

Targeted proposals to help MSMEs, be it the enhanced credit guarantee schemes, MSME credit cards, Bharat Trade Net should help unlock the next round of growth, exports and employment generation in this segment and by extension, drive growth for all banks and NBFCs focused on this space! Separately, am quite thrilled to see the Government’s sustained focus on decluttering laws and enhancing ease of doing business, including the proposed measures to widen the scope of fast-track mergers

The FM announced a few welcome measures to further encourage investment in startups including a new Fund of Funds for Rs.10,000 crores with expanded coverage, enhanced credit guarantees for start-ups and MSMEs, lending to 500,000 women entrepreneurs. It also fosters innovation by announcing several measures including a corpus for research on small nuclear reactors, evaluation of a Deep Tech fund of funds, enhancing outlays for skilling, for AI in education, capacity expansion of IITs and medical colleges. The push for ease of doing business with a new Income tax Bill and a committee for review of all non-financial regulations, augmenting speed of approvals for mergers should create a pathway for easier and enhanced compliance. Lastly the tax holiday for startups has also been extended by 5 years.

Budget 2025 is a well thought out, comprehensive growth-oriented budget pushing both the critical wheels of Indian economy - capex and consumption, while maintaining the Fiscal Discipline. Major boost provided to infrastructure investments, with focus on Manufacturing, especially in the power sector (more so in Nuclear sector), allied cleantech manufacturing and shipping sector. Reforms in PPPs and a rebooted asset monetization pipeline to unlock private capital in infrastructure is very heartening to note. Fiscal benefits provided to Hospitality, Tourism and Real Estate sector to foster a positive growth environment towards a Viksit Bharat. Great simplification outlines in compliances, TDS, TCS, and various other process to push ease of doing business.

A band-aid for bullet wounds!

Amid global uncertainty, solving our economic crisis demanded a paradigm shift.

But this government is bankrupt of ideas.

“After a long time, the middle class has a reason to cheer. By moving the tax exemption to Rs.12 lacs, the current income tax proposal is going to leave a lot of money in the hands of the middle class. While the government is foregoing Rs.1 lac crore of Income Tax, we think the increase in consumption can help offset some of the exchequer loss. On the fiscal side a budget estimate of 4.4% is tad on the higher side. I think the government recognizes the recent slowdown and the importance of govt expenditure to maintain the growth momentum. Bringing the gig workers into its notice, atleast through some medical relief, is a step in the right direction as 1 crore gig workers is a very large segment of the population and also the fastest growing portion of the employment pool. Overall the budget has balanced the large goals of Economic Development and the Social responsibility of the government.”

“The Union Budget 2025 brings growth opportunities to the retail sector. The exemption of annual income up to Rs 12 lakh from income tax, along with the rejigged tax slabs, will significantly boost disposable income for consumers. This is set to increase consumer spending, especially in retail and e-commerce. We at Pathfinder are excited by the potential of these measures, as they lay the foundation for an even more vibrant, digitally-driven retail landscape. The future of Indian retail is brighter than ever!”

“Union Budget 2025 brings significant relief to the middle class, with the bold move of exempting incomes up to ₹12 lakh from income tax. This will have a positive impact on the retail investor segment, boosting household savings and investments. With the government focusing on infrastructure development and expanding FDI in the insurance sector, we can expect a strong push for growth in financial markets and a more investor-friendly environment. As a stock broking platform, we are excited about the potential of this budget to foster a more robust investment culture in India.”

“Given the current market conditions and the government’s strong push for economic growth, the Union Budget 2025 brings a renewed sense of optimism for the stock market. The focus on infrastructure, innovation, and fiscal prudence will not only drive domestic consumption but also attract significant foreign investment. As we enter an era of digitisation and sustainable growth, this budget positions the Indian capital market as an increasingly lucrative space for both investors and businesses alike.”

“The Union Budget 2025 reflects the Government’s vision for moving towards a stronger and more resilient economy. The focus on tax rationalization and people skilling will spur consumption and economic growth. We appreciate the Government’s commitment to enhance productivity in agriculture, support MSMEs, boost manufacturing and secure energy supplies. Specifically, the announcement made on removal of Basic Customs Duty on waste and scrap of metal commodities like Copper, Lead, Zinc and others has the potential to boost the circular economy, enhance raw material supplies and support domestic manufacturing.” 

“Start-ups are at the heart of India’s growth story, driving innovation, job creation, and global competitiveness. With a thriving entrepreneurial ecosystem, India is well-positioned to lead the next wave of economic transformation.

At The Wealth Company, we recognize that access to capital is critical for start-up success. The Fund of Funds for Start-ups and the Alternate Investment Fund (AIF) have already attracted commitments exceeding ₹91,000 crore, backed by the government’s ₹10,000 crore contribution. To further fuel innovation, a new Fund of Funds with an expanded scope and an additional ₹10,000 crore will be launched, providing start-ups with greater access to growth capital.

Our vision aligns with Viksit Bharat 2047, targeting 8% annual growth, increased capital expenditure of ₹11.1 lakh crore, and a strong push for infrastructure and manufacturing. Tax reforms, including potential relief for the middle class and revisions in tax slabs, will create a more favourable business environment.

With a firm commitment to Atmanirbhar Bharat, we are fostering resilience, investment, and entrepreneurship to build a globally competitive start-up ecosystem, particularly with our Bharat Value Fund Series 2 and Series 3 Fund, a CAT II AIF that has raised more than 3500CR in the last six months.”

“The Budget heralds a defining phase in India’s insurance evolution. The liberalization of FDI norms signifies not just capital inflow, but a fundamental shift in how we can revolutionize insurance penetration in India. This reform will enable us to bring global best practices, enhanced underwriting capabilities, and innovative InsurTech solutions to serve our diverse customer base.

The healthcare infrastructure push, particularly in cancer care, comes at a crucial juncture. As insurers, we see this as an opportunity to design specialized health coverage products that can complement the expanding medical infrastructure. This, combined with India’s emerging position as a medical tourism hub, allows us to create comprehensive cross-border health insurance solutions.

The transformative personal tax reforms will boost individual’s disposable income. This increased financial capacity, coupled with growing awareness of protection needs, presents a unique opportunity for the insurance sector. We anticipate a fundamental shift in financial planning behaviours, where insurance moves from being an afterthought to becoming a core element of household financial security.”

“The budget has tried to balance the twin objectives of fiscal discipline and supporting growth. At the margin, there is a tilt towards supporting consumption through tax cuts for middle class households, relative to the public capex push seen over the last four years. This shift takes into account the difficulty in executing public capex projects due to budget and institutional capacity constraints, and the need to support private consumption this year, given weakness in urban consumption. Nevertheless, public capex is expected to rise by around 10% y-o-y in FY26, which is a modest but realistic outcome. The government has been able to show a lower fiscal deficit number and give a income tax boost due to another bonanza expected from the RBI dividends and a slower pace of public capex growth. Overall, the budget is in line with our expectations, and a prudent outcome. The growth impulse from the budget should be marginally positive for FY26, in our view. Fiscal prudence will keep India’s fiscal risk premia low and provide greater leeway to the RBI to begin lowering its policy rate at the February MPC.”

“The Union Budget remains growth oriented – not only attempting to correct for the cyclical growth concerns but also setting up the platform for a sustained long-term journey for the economy, keeping the focus strongly on the objectives of Viksit Bharat. Importantly, sectors that are relatively more labour intensive in nature have received a boost within the budget – namely agriculture, MSME, footwear and leather, toys, food processing. The focus of the budget has been on ways to improve productivity across various sectors and to provide adequate scope for the MSMEs to expand by enhancing the credit guarantee scheme for them. Importantly, the classification.”

“The Budget has reiterated its commitment to fiscal prudence by moving along the FRBM path. From the point of banks, the focus on growth is positive, as this would mean steady growth in credit as the budget has provided the necessary push to MSMEs and industry. There is boost to the corporate bond market including municipal bonds which will have a big role to play in financing investment required in the coming years. The concessions on the income tax front will put more money in the hands of taxpayers and would boost consumption in the economy. The capital expenditure of Rs 11.2 lakh crore announced will encourage investment and also help backward linkages to sectors like steel, cement, machinery etc. Working on the PPP mode across ministries to implement various projects is very progressive and will boost infrastructure capacity in the country. 

The budget has also taken a medium term view for the next five years to move faster to the goal of Viksit Bharat and focussed on four major sectors – Agriculture, MSMEs, Investment and Exports thus covering both the objectives of inclusive and accelerating growth to higher levels.”

“The scrapping of basic customs duty on import of lithium-ion battery scrap and capital goods – or the machinery used to manufacture lithium-ion batteries – will strengthen the domestic battery storage ecosystem. The development of battery-backed renewable projects, which are expected to form over 33% of renewable power capacity additions in India over the next 3-5 fiscals, will benefit by having greater control over costs, quality and supply of battery systems.”

“The budget marks an important pivot from capex-led growth to a consumption-driven strategy. However, the personal income tax estimates appear optimistic, raising concerns about revenue sustainability. While the stimulus provided is a step in the right direction, it may not be sufficient to drive broad-based economic momentum. A coordinated approach—balancing fiscal measures with monetary policy and exchange rate management—will be crucial. Urban consumption, particularly in sectors like retail and auto, is expected to benefit from these measures, but sustaining this momentum will require deeper structural interventions.”

India will be doubling the financial aid provided to Taliban-ruled Afghanistan for the year 2025-26, while it will be reducing aid to some of the island nations in the Indian Ocean including Mauritius and Seychelles.

In the Union Budget presented on Saturday, the Government of India has proposed to provide ₹6886 crore as grants and loans to foreign governments for the year 2025-26, which is 37 percent less compared to the Rs 11,035 crore promised for the current financial year. These grants and loans are provided by the Ministry of External Affairs and Ministry of Finance.

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Aimed at strengthening the fisheries sector and unlocking its untapped potential, the Finance Minister, Nirmala Sitaraman, has announced plans to strengthen the sector with a special focus on the Andaman & Nicobar and Lakshadweep Islands.

Grinson George, Director of the Central Marine Fisheries Research Institute (CMFRI), said efforts to create an enabling framework for harvesting marine resources in the EEZ and high seas are expected to boost India’s blue economy, giving a fillip to sustainable utilisation of off-shore fisheries potential. India’s EEZ offers a significant opportunity for increased sustainable fishing. While current fishing activity primarily concentrates within the 12-nautical-mile territorial waters, vast underutilised resources exist beyond this limit.

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“The Union Budget presents a forward-looking vision that aligns with India’s goal of becoming a global economic leader. The focus on strengthening digital infrastructure, particularly through continued investments in technology, sets the stage for accelerated growth in sectors such as AI, innovation, and deep tech. The emphasis on skilling initiatives, including the enhancement of Industrial Training Institutes, will ensure a future-ready workforce capable of meeting the demands of Industry 4.0.

The 2025 budget strengthens India’s global tech leadership by allocating resources to research, including 10,000 new fellowships, which will advance AI, ML, and renewable energy. Additionally, the establishment of Centres of Excellence in AI and the launch of a new Fund of Funds for startups further bolster India’s position as a hub for innovation and entrepreneurship. To ease of doing business, the government’s efforts to ensure that regulations keep up with technological innovations and global policy developments is commendable. The creation of 50,000 Atal Tinkering Labs over the next five years will provide young minds with hands-on experience and the tools to turn their innovative ideas into reality, contributing to the country’s growing tech ecosystem and fostering a culture of self-driven innovation. Last but not the least, simplification of tax procedures, reducing the compliance burden and finally reduction of taxes for the middle class and working population is a huge morale boaster while putting money in the hands of those who continue to spur consumption and growth.”

“A major announcement in the Union Budget for FY2026 is the reduction in income tax which will enhance the disposable income in the hands of consumers and is a positive for affordable and mid-income housing segments. The continued focus of the government on the affordable housing segment, as reflected in the higher allocation of 54% towards the PMAY-Urban programme in FY2026 BE as compared to FY2025 RE, should aid the affordable urban housing segment. Further, the introduction of a second tranche of SWAMIH Fund of Rs. 150 billion is likely to provide much-needed liquidity support to the stressed residential projects and support in the completion of an additional 40,000 housing units.”

“The Union Budget 2025 lays out a clear roadmap for long-term transformation, driving India closer to its vision of a ‘Viksit Bharat’ with progressive policies and reforms that foster modernization, economic growth, and inclusive development. The continued allocation of over Rs. 11 lakh crore in capital expenditure, alongside targeted initiatives to boost consumption, support ‘Make in India’, and promote agricultural growth, is set to create a more dynamic economic environment. The removal of basic customs duties on key materials for battery manufacturing is a strategic move to boost domestic EV production, foster a sustainable ecosystem, and drive India’s transition to a greener economy. As infrastructure projects gain momentum and consumption picks up, improved roads, connectivity, and logistics will undoubtedly drive increased demand for freight and commercial transport solutions driven by both domestic demand and broader economic recovery.”

We appreciate the Finance Minister’s highly growth-oriented budget, with its clear focus on enhancing self-reliance (Atmanirbharta) in the manufacturing sector, driving the Atmanirbhar Bharat vision forward. The introduction of the National Manufacturing Mission across industries of all sizes, underpinned by robust policy measures, represents a crucial step towards strengthening the “Make in India” initiative. This will undoubtedly boost domestic manufacturing capacity and reduce our dependence on imports, particularly for critical components used in electric vehicles (EVs), batteries, and related parts.

The enhanced credit guarantee cover and investment in MSME classification will provide essential financial support to the more than 10 million registered MSMEs, which employ 75 million individuals. This strengthens their crucial role in establishing India as a global manufacturing powerhouse and contributes significantly to the Atmanirbhar Bharat mission.

Overall, this budget demonstrates a progressive vision, prioritising sustainable growth within the manufacturing sector and equipping our workforce for the future. We are optimistic that these initiatives will deliver tangible results for the manufacturing industry and contribute significantly to the nation’s overall economic growth, furthering the goals of Atmanirbhar Bharat.

“With the allocation of INR 1.7 Lakh crore towards agriculture, this year’s budget builds on the long-term vision for the agriculture sector. The sector could get a fillip through the Dhan Dhanya Krishi Yojana for 100 districts. The crop specific initiatives on productivity enhancement and crop diversification along with a curated push towards high yielding seeds (HYS) is another welcome step. Continued support towards empowering cooperatives and farmer producer organisations (FPOs) as well as focused initiatives for fisheries reinforces the Government’s commitment towards inclusive and sustainable growth for the agriculture sector.”

“With agriculture set to play a key role as part of the Dhan Dhanya Krishi Yogana and government laying special emphasis on the role of technology in achieving the objectives, new-age and emerging farming value chain elements such as drones have opportunity for a higher order of contribution to enhance agri-productivity as well as storage. Additionally, though not explicitly laid out in the Union Budget, however the farming community also have new livelihood avenues in form of farm technicians that can own the use of drones in the productivity value chain. 

Overall, the Union Budget 2025 reinforces India’s commitment to “Make in India” and “Viksit Bharat,” with a strong push for manufacturing and MSME growth. With over 1 crore MSMEs driving 36% of manufacturing and 45% of exports, enhanced investment and turnover limits will empower them with scale, technology, and capital access. The National Manufacturing Mission will provide policy support and execution roadmaps, fostering an ecosystem where companies like Scandron can thrive.”

“The Union Budget paves the way for holistic and fast-paced rise of the country as an economic super house. Pertaining to technology industry, the provisions and initiatives announced to setting up of Centre of Excellence for AI as well as special fund focused on deep tech, will further place India at the global centre stage of revolution. With reference to focus on employment and skilling for the youth, the Union Budget provides the right impetus to gain industry-relevant skillsets and opportunities. Furthermore, the ecosystem also stands to benefit out of the opportunities arising for Industry 4.0 inclination for domestic manufacturing push with IoT and smart tech capabilities expected to gain prominence. Overall, the five engines of growth are well thought-off and the onus is on the industry to play its part.”

“In a challenging economic environment with slowing GDP growth, the budget could have taken a prudent approach by fiscal expansion rather than fiscal consolidation, reducing the fiscal deficit from 4.8% in FY25 to 4.4% in FY26. While this reflects a commitment to financial stability, a stronger push on capital expenditure could have further strengthened employment, business growth, and overall economic activity”

“We welcome the Union Budget 2025, which places a strong emphasis on boosting travel and tourism. The government’s focus on infrastructure development, particularly in tier-2 and tier-3 cities, will enhance connectivity and attract more domestic and international tourists.

The push for the Public-Private Partnership (PPP) model in tourism infrastructure is a commendable step. By encouraging private sector participation, the budget paves the way for faster execution of projects like ropeways, eco-tourism hubs, and heritage site development. This will not only improve accessibility to remote tourist destinations but also create employment opportunities and drive local economies.

Additionally, the establishment of five national centers for skilling under the ‘Make for India, Make for the World’ initiative is a forward-thinking move. These centers will equip the workforce with specialized skills, fostering innovation and quality in tourism services and infrastructure. This aligns seamlessly with our vision of developing world-class ropeway systems that are both efficient and sustainable.

As a leading player in ropeway infrastructure, we see immense potential in these initiatives. We look forward to collaborating with the government to develop sustainable and efficient transport solutions that will redefine tourism in India and make travel safer, more convenient, and environmentally friendly.”

“We welcome the Union Budget 2025, especially the much-needed tax relief for the salaried class, exempting income up to ₹12 lakh. This move will significantly boost disposable income, making homeownership more achievable for first-time buyers. The government’s continued push for affordable housing is a step in the right direction, reinforcing confidence in the sector and encouraging broader homeownership.

However, key industry demands, such as industry status for the real estate sector and a streamlined single-window clearance system, remain unaddressed. These reforms are crucial to enhancing ease of doing business, expediting project approvals, and ensuring faster delivery of homes.

Despite this, the focus on first-time homebuyers and affordable housing is a positive development that will drive demand and support economic growth.”

“We welcome the Union Budget 2025, which brings a significant boost to the real estate sector, particularly for homebuyers. The mega tax relief, exempting income up to ₹12 lakh from taxation, is a game-changer for middle-class families. This increased disposable income will empower first-time homebuyers, making homeownership more accessible and driving demand in the sector.

The government’s continued push for affordable housing, coupled with the ₹15,000 crore allocation under SWAMIH Fund 2, is a commendable step towards ensuring project completion and reviving stalled developments. These measures will not only enhance housing affordability but also instill confidence in homebuyers and developers alike.

At Ganga Realty, we believe these initiatives will accelerate growth in the sector, create new opportunities, and contribute to the vision of ‘Housing for All.’ We look forward to supporting this positive momentum and delivering quality homes to aspiring buyers.”

“The Union Budget 2025-26 presents a transformative vision for India’s travel and tourism sector, reinforcing its role as a key driver of economic growth and employment. The expansion of the UDAN scheme, connecting 120 new destinations and enabling 4 crore additional passengers over the next decade, will significantly enhance regional connectivity, making travel more accessible and affordable for millions. The facilitation of greenfield airports in Bihar further underscores the government’s commitment to strengthening aviation infrastructure across the country.

Moreover, the proposed development of 50 top tourist destinations, coupled with performance-linked incentives for states, streamlined e-visa facilities, and visa-fee waivers, will position India as a more attractive global travel destination by easing out travel infrastructure. Initiatives like skill development programs, MUDRA loans for homestays, and enhanced connectivity will empower local communities, create employment opportunities, and enable businesses to thrive more efficiently. The emphasis on spiritual tourism, particularly in destinations linked to Lord Buddha, and the strategic push for medical tourism through the ‘Heal in India’ initiative will further diversify India’s tourism offerings, attracting travelers from across the world. With a focus on seamless travel, enhanced infrastructure, and an enabling policy framework, this budget lays a strong foundation for a new era of tourism-led economic growth, ensuring India remains a top destination for both domestic and international travellers.”

“Union Budget 2025-26: A Big Win for Personal Finance & Growth

The Union Budget 2025-26 delivers a strong push for middle-class taxpayers, making personal finance a key beneficiary. With zero tax up to ₹12 lakh under the new tax regime and simplified TDS/TCS rules, individuals will have higher disposable incomes, driving consumption and savings. The rationalization of tax slabs and compliance relief further eases financial planning, making this budget a major step toward a more taxpayer-friendly system.

Beyond tax relief, the budget supports long-term wealth creation through pro-growth policies, infrastructure investments, and MSME incentives. The ₹10,000 crore Alternate Investment Fund (AIF) for startups and higher MSME credit limits aim to boost entrepreneurship and job creation, fostering an environment where individuals can benefit from expanding economic opportunities.

On the macroeconomic front, the government maintains fiscal prudence, targeting a 4.4% fiscal deficit in FY26 while projecting a 10.1% GDP growth at current prices. Increased capital expenditure and a renewed focus on divestments ensure that growth remains sustainable, paving the way for robust financial markets and stable long-term returns for investors.

For rural and agricultural sectors, higher credit limits for farmers under the Kisan Credit Card (KCC) and dedicated support for agri-processing, including the Makhana Board in Bihar, promise income stability for millions. Similarly, trade facilitation measures like the Export Promotion Mission and Bharat Trade Net will simplify business transactions, ensuring stronger growth in global trade.

With bold reforms, tax relief, and growth-oriented measures, Budget 2025-26 strengthens personal financial security while driving India’s economic momentum. A clear focus on wealth creation, savings, and ease of doing business makes this a transformative budget for individuals and investors alike.”

“The boost to consumption by extending tax slabs and removing tax for income upto 12L, could prove to be significant to revitalise the economy. The government has put more money in the hands of the tax payer. We hope the new tax bill promised by the finance minister would make tax compliance easier and reduce the effective tax rate. It would be important to wait for the new tax bill before planning expenses and investments. Unleasing the consumption potential could benefit MSMEs as well. It was also encouraging to see the government focus on MSMEs as engine of growth. We hope to see private capex pick up from the prudence that the government has maintained on the policy front. The repositioning India post as a core logistics player can also help connect remote destinations and speed up growth.”

A Visionary Budget Focused on Structural Growth*

The Union Budget announced today is more of a strategic vision statement than a transactional budget. Instead of relying on populist measures, it seeks to drive inclusive growth by providing a structured framework for reforms and development at the state level.

A key highlight is the roadmap laid out across multiple sectors—agriculture, micro, small, and medium enterprises (MSMEs), tourism, backward district development, and renewable energy—extending well beyond the next five years in some cases.

Notably, the government has exceeded its statutory obligation in reducing the fiscal deficit, which strengthens India’s case for a sovereign credit rating upgrade in the near term. This move also increases the likelihood of the Reserve Bank of India (RBI) initiating a rate-cutting cycle as early as next week, with a probable reduction of at least 25 basis points. A lower interest rate environment will, in turn, reduce borrowing costs for the corporate sector, supporting business expansion.

The emphasis on capital expenditure remains strong, with a budgetary allocation of ₹11.2 trillion for FY26. However, rather than relying solely on government spending, the budget outlines a clear execution strategy through Public-Private Partnerships (PPP), a crucial step in revitalizing the private capex cycle over the next three to five years.

Additionally, the provision of personal income tax relief for individuals earning up to ₹24 lakh per annum is expected to stimulate consumption, particularly in the discretionary spending segments of the middle and upper-middle-income groups.

Overall, this budget signals a shift towards long-term structural growth, balancing fiscal prudence with economic expansion while setting the stage for sustainable private-sector participation.

“The budget met market expectation and is in continuity of focusing on consumption and capex revival which will help in further strengthening the economy. Increase in income tax exemption will boost disposable income. We also laud agriculture schemes and strengthening India’s startup ecosystem. The creation of various financial schemes is expected to foster innovation, job creation, and inclusive growth.”

“GreenCell Mobility applauds the Government of India for its steadfast commitment to advancing the EV sector and fostering a sustainable future. The set up of National Manufacturing Mission and exemption on capital goods will accelerate domestic clean tech manufacturing, enhance EV battery production, and strengthen India’s renewable energy ecosystem. A robust EV infrastructure is crucial for industry growth and seamless integration of electric mass mobility. Additionally, the government’s focus on connectivity and tourism infrastructure, along with income tax relief, will boost economic activity by increasing disposable income for the middle class. These initiatives will encourage more people to explore new destinations while choosing sustainable and eco-friendly transportation options like our NueGo service. At GreenCell Mobility, we remain committed to supporting India’s sustainable development goals by driving the future of electric mass mobility and contributing to a greener, more connected nation.”

“The Union Budget 2025-26 lays down a strong foundation for India to transition towards becoming a sustainable, technology-driven, and self-reliant economy. The emphasis of the government on green energy, EV infrastructure, AI-led innovation, and digital transformation closely resonates with Delta’s aim to deliver energy-efficient, smart solutions that power the future.

This would place India on further accelerated net-zero emission paths and spur technological leadership for the country simultaneously. Higher penetration of clean mobility will be facilitated through investments in modernizing smart grids and EV charging infrastructure.

Delta is placed to help since it leads the market for an EV charging and power solution. The PLI incentives for R&D and manufacturing under the scheme will further cement India’s position as a world manufacturing hub.

Delta continues to utilize its prowess in industrial automation, power electronics, and smart infrastructure for contribution to the development of India. We are hopeful that together with industry stakeholders and policymakers, these budgetary allocations will take on a shape where the vision is turned into an actual path leading to a sustainable, digitally empowered, and future-ready India.”

“The Deep Tech Fund is a crucial step toward positioning India as a global leader in emerging technologies. As a quantum-safe cybersecurity company, we recognize the vital role deep tech plays in national security, data protection, and technological sovereignty. This initiative will provide essential financial support to startups in quantum computing, AI, and advanced semiconductors, promoting innovation and global competitiveness. It reflects the government’s commitment to breakthrough technologies that drive economic growth and digital resilience. We welcome this development and look forward to its impact on India’s tech-driven future.”

“The proposed changes in TDS and TCS under the Finance Bill, 2025, mark a significant shift towards a more streamlined and taxpayer-friendly regime. The removal of TCS on educational remittances alleviates financial strain on parents and students, ensuring seamless fund transfers without the hassle of reclaiming tax credits. Increasing TDS thresholds for interest (doubled for senior citizens), dividends (doubled), and rent (enhanced from 2.4L p.a to 6L p.a) simplifies compliance, benefiting small investors, senior citizens, and landlords by improving cash flow and reducing unnecessary deductions.

For businesses, reduced TDS rates on insurance commissions (now 2%) and securitization trusts (now 10%) enhance liquidity and ease administrative burdens. By aligning tax collection with actual tax liabilities, these reforms not only minimize excessive deductions but also reduce dependency on refunds.”

“The Union Budget 2025-26 marks a pivotal shift in India’s innovation landscape, introducing key policy changes that boost economic momentum while fostering a conducive environment for AI, BFSI, and startup sectors.

At LeadSquared, we welcome these policy shifts that align with our mission of delivering cutting-edge, AI-enhanced business solutions. The government’s initiatives supporting local production, increasing insurance sector FDI thresholds, and implementing new entrepreneurial support systems—particularly benefiting women entrepreneurs and new business founders—complement our objectives of driving digital evolution across BFSI and other industries. Given the expanded scope for startup growth and emphasis on advanced technologies, we are ideally positioned to support our clients in leveraging these opportunities, enabling superior customer interactions and promoting expansion in this evolving digital landscape.”

“For middle-class households in India, the construction of 50,000 dwelling units under the Special Window for Mid-Income Housing and the anticipated delivery of an additional 40,000 units in 2025 represent a major milestone. By easing the combined financial strain of rent and EMIs, these initiatives help homebuyers regain their confidence. In addition, the ₹1 lakh crore Urban Challenge Fund, which has ₹10,000 crore set aside for FY 2025–2026, has the potential to turn our cities into vibrant centers of growth. Cities will become more habitable and appealing as a result of this significant investment in urban infrastructure. These programs along with additional funds given in hands of taxpayers by slashing on rates has further opened the door for sustainable urban growth and shall inspire any real estate developers.”

“A significant turning point for the real estate sector has been marked by the government’s recent announcement, with over 88 lakh homes completed, and the launch of PMAY-U 2.0 in September 2024 to assist an additional one crore households. This program is expected to boost economic growth, encourage public-private collaborations, and promote the housing industry. Developers with strong financial backing are well-positioned to support this revolutionary process by providing high-quality housing options that complement the ‘Housing for All’ national objective. This initiative, which addresses the urgent demand for housing in metropolitan and tier 2 markets, is anticipated to be well received by the people.”

“We welcome the finance minister’s decisions towards the real estate sector in the Budget 2025. Under the SWAMIH program, 50,000 dwelling units and plans to drive an additional 40,000 units by 2025 have been completed. This will provide support to middle - class families facing dual housing costs and alleviating financial burden on families paying EMIs on housing loans, while also covering rent for their existing homes. For the fiscal year 2025 - 26, Rs 10,000 crore has been allocated from the Rs 1 lakh crore Urban Challenge Fund, which aims to implement projects under the themes of ‘Cities as Growth Hubs’ and ‘Creative Redevelopment of Cities’. The fund will support urban areas’ transformation into growth cent.”

“As we reflect on the Union Budget 2025 - 26, there is a renewed sense of optimism within the real estate sector. The Finance Minister’s focus on addressing stalled housing projects through initiatives such as interest - free loans amounting to Rs 1.5 lakh crore for capital expenditure and the introduction of three Public-Private Partnership model (PPP) proposals from each infrastructure ministry is commendable. This budget also aims to complete an additional 40 thousand housing units in 225, benefitting middle class families who are currently managing both EMIs for home loans and rental payments. A nationwide framework will be developed as guidance to states for promoting Global Capacity Centres (GCCs) in emerging tier 2 cities. Also, increase of the nil tax slab threshold to ₹12 lakh enhances the spending power of the middle class, making homeownership more attainable. With increased disposable income, individuals can more comfortably manage home loan EMIs, encouraging them to invest in their dream homes Overall, this budget sets the stage for sustainable growth in the real estate sector, fostering new opportunities for investors and homebuyers.”

“Debt markets should benefit from the budget’s fiscal management. Despite economic growth falling behind expectations in FY25, Fiscal Deficit of 4.8% was better than targeted 4.9%. Also, though Economic Survey expected growth to remain restricted at or under 6.8% in FY26, central government fiscal deficit has been forecasted to be 4.4%. Another 15-basis point reduction in the 10-year government security is expected after today’s announcements. No other major economy has been able to reduce fiscal deficit at this pace post COVID, bolstering India’s place as an upcoming economic power. The tax cut led additional income available to India’s vast middle class and aspiring population is expected to override the slow public capex in FY26 and provide the Indian economy with the necessary boost to come out of the current slowdown.”

“This is a growth oriented budget that reflects the continuity of thinking from a third-term government while maintaining a focus on fiscal discipline, growth, and controlled inflation. The reduction in personal income tax and initiatives to boost credit growth will positively impact consumption. The budget acknowledges the crucial role of MSMEs, startups, and AIFs in driving innovation-led economic expansion. The introduction of a new Fund of Funds for AIFs, the Deeptech FOF, and a Center of Excellence for AI in Education are all promising steps toward fostering a knowledge-driven economy.

Measures to improve credit access, expand public-private partnerships for critical infrastructure, and enhance financial inclusion demonstrate the government’s commitment to long-term growth. Increasing the FDI limit in insurance to 100% is a welcome move, given India’s significantly low insurance penetration, and should attract global capital to strengthen the sector.

The finance minister’s emphasis on a “light-touch regulatory framework based on principles and trust” is an important step forward. Regulation should enable, not hinder, business growth, and this approach signals a progressive shift in policy thinking. A business-friendly environment, backed by stability and trust, is key to unlocking India’s next phase of economic expansion.

By balancing fiscal prudence with strategic investments, the budget sets a strong foundation for sustained economic growth. If executed effectively, these measures will enhance ease of doing business, increase private sector participation, boost household consumption, and further India’s ambitions as a global economic powerhouse.”

“This was a real difficult budget to formulate, considering the overall macro-economic scenario, GDP growth curve and changing equations of geo-politics affecting the international trade. The Hon’ble Finance Minister has tried to create a balance of sustainable growth, welfare initiatives and employment generation. Focus of capital expenditure and infrastructure spending is clear signal that the government is determined to put the GDP growth back on the track of 8% or more in couple of years.

This is also important to notice that the global trade vibrancy is tapering down, and hence it is crucial to focus on the domestic front in terms of production. The budgetary emphasis on sectors like Make in India, MSME, technology, defense and agri-infra are initiative in this direction. 

Infrastructure & Urban Development has multiple focal points in the infrastructure such as reemphasis on PPP, setting up fund of Rs 1 lakh crore on redevelopment of cities, 120 news airports under UDAN. It is also a very positive thing that the government has decided to give access of relevant data and maps under PM Gati Shakti scheme to the private sector. 

The budget also has made noticeable provisions in the income tax slabs for increasing the disposable income in the hands of common people which will in turn strengthen domestic demand and household consumption necessary for ensuring growth. 

The MSME sector has rightly been put as second engine of growth as it is a major export contributor. However, export oriented MSMEs could get the support from the government in terms of PLI, technology upgrade, capacity building and tax-benefits. We strongly believe that in the follow up policy announcements, these issues will be addressed by the FM. 

The Real Estate sector was expecting rationalization is GST rates of building material and other policy announcements to address the liquidity issues. However, as it remains unaddressed, the Realtors will feel a bit disappointed. 

Overall the Budget is in line with the expectations and it should lead to steady revival in GDP growth. A lot will depend on how speedily the large scale flagship programs are rolled out, while keeping the fiscal deficit in check.”

“The budget’s proposal to add 35 capital goods used for EV battery manufacturing to the duty-free list aligns with the Make in India initiative and the Government’s aim to boost green energy. This move will reduce the production costs for manufacturing EV’s, stimulate growth in this sector and attract more investments in India’s growing green manufacturing ecosystem. From the consumer point of view, duty benefits will make EVs more affordable.”

“The Finance Minister first announced about the development of small modular reactors, which she named - Bharat Small Reactors (BSR) in partnership with private sector in last year’s budget (2024-25). Small modular reactors, with a capacity of up to 300 MW and based on the pressurised heavy water reactor technology which is already operational in large scale nuclear projects in India. SMRs or BSRs (as named in the budget) will be one-third the size of conventional nuclear reactor, with lesser land requirements, making it cost-efficient, and are modular and flexible enabling distributed generation focused on producing electricity closer to where it is consumed, thereby reducing transmission losses and the need for extensive transmission infrastructure and advancing the opportunity to provide reliable power in areas that are underserved by traditional large-scale power plants.” 

“Today, the Finance Minister, in her Budget 2025-26 speech has taken a step forward in realizing efforts in adoption of nuclear energy for clean energy transition by announcing a Nuclear Energy Mission with an outlay of Rs. 20,000 crore for research & development of small modular reactors and with a plan to operationalize at least 5 indigenously developed SMRs by 2033.”

“It is well known that the development of SMRs in India, especially with private sector participation, requires making amendments to the extant regulatory frameworks. Since the present nuclear energy laws put development of nuclear energy in the sole ambit of government entities. In this Budget, it is interesting to note that the Government has announced plans to bring in amendments to the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010.”

“We can hope that amendments will be brought in to facilitate ease of doing business for private sector, including revisiting safety procedures, harmonising licensing processes, procurement, transportation, storage, construction, installation and waste management protocols for the advancement of nuclear energy.”

“The budget is a holistically defined approach that exactly addresses some of the most critical pain points of the healthcare sector, thus contributing to the nation’s march towards emerging as Viksit Bharat. The move to introduce 200 day-care cancer centers is a stellar step against battling cancer that will take India to global stage, and will especially be of immense benefit to the rural counterpart and Economically Weaker Section of the country. 

Along with this, the move to exempt life-saving drugs and provide concession on custom duties on another 6 will significantly reduce the burden on patients dealing with cancer, rare diseases and chronic conditions, enabling quality treatment and reducing the fatality rate. 

India is already a revered destination for medical tourism and with collaborative efforts between the government and private sector, we foresee a robust outcome that will benefit the Indian economy by attracting foreign patients to India for treatment by proposing easier visa norms and facilities. Overall, the 2025 budget has defined the pace and outline for India’s journey towards becoming self-reliant and we look forward to many more revolutionary measures in times to come.”

“The Union Budget 2025 offers a progressive vision for the real estate sector with substantial incentives for homebuyers and strengthening market confidence. A game-changer is the increase in the home loan interest deduction limit from ₹2 lakh to ₹5 lakh, making homeownership more accessible and stimulating demand, particularly in key urban centers like MMR.”. SWAMIH Fund 2 will infuse ₹15,000 crores into helping stalled projects achieve delivery timelines so that the investment made by them would be more credible. The increase of the annual exemption limit on rent from ₹2.40 lakh to ₹6 lakh will enormously benefit small taxpayers and landlords. It will further ease compliance burdens and enhance liquidity in the rental market. Income tax exemption up to ₹12 lakh under the new regime is also expected to expand disposable income, enabling middle-class individuals to invest in second homes and in real estate generally.

Sustained focus on infrastructure development under the National Infrastructure Pipeline (NIP) will further accelerate real estate, particularly for second-home buyers, who are keen on emerging destinations with better connectivity. The regulatory reforms under RERA and GST have already brought transparency with over 1.38 lakh projects and 96,000 agents registered, thus giving much more confidence to investors and homebuyers.

It is the forward-looking policies that will catalyze growth in the real estate industry. Continued structural reforms, such as rationalizing GST and input tax credit for real estate will ensure the sector expands in the long term and there will be more opportunities both for buyers and developers across India.”

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“At the outset, a very welcoming Budget! The Finance Minister has demonstrated that the Government holds the pulse of the nation and has tried a bold yet balancing act by increasing the income tax threshold to 12 lacs. This move provides relief to the middle class, boosts consumption by injecting liquidity thereby helping the GDP, reducing compliance and the feeling of unjust treatment of salaried taxpayers - all in a single step. By focusing on decriminalising various provisions and increasing the threshold on interest and rental income, not taxing the deemed rent on self-occupied properties up to two properties, it also helped the senior citizens who were forced to claim refunds resulting in interest cost to the Government and feeling of injustice amongst the taxpayers. By focusing on various rural and agricultural schemes focusing on exports and import substitution of oil seeds and pulses, formulating a presumptive tax scheme for non-resident suppliers to electronics manufacturing, and extending tax holidays for certain activities in IFSC and sovereign investment, it has tried to address specific issues that may help the country sector specific issues and imbalances.”

“Union Budget 2025 is a liquidity focused, offering significant relief to the middle class while maintaining a strong focus on infrastructure and real estate. With tax slab rationalization, increased disposable income and less compliance burden, it puts more money in the hands of common man, thus boosting both spending appetite and encouraging investment patterns for the general public. 

The ₹11 lakh crore capital expenditure push will accelerate infrastructure development, along with the Urban Challenge Fund which reinforces urban transformation, boosting development and creation of newer micro-markets for the real estate sector. Along with this, the introduction of SWAMIH 2.0 with ₹15,000 crore allocated for 1 lakh housing units strengthens the real estate sector. 

Key reforms like TDS and TCS simplification increase in the TDS limit on rent and the allowance of two self-occupied properties instead of one will leave more money in the hands of the consumer, thereby boosting consumption. Additionally, extending the investment timeline for AIF Category I & II until 2030 supports long-term capital formation. Overall, the budget also covers the key engines of development across sectors, MSMEs, investment, and exports, ensuring sustained economic momentum.”

“The Union Budget 2025’s focus on tourism is a visionary step toward strengthening India’s travel landscape. Developing 50 top destinations with state collaboration, enabling land and hotel projects, and introducing MUDRA loans for homestays will boost infrastructure, employment, and sustainable tourism. E-visa extensions and visa fee waivers further enhance accessibility for global travelers. Additionally, tax reforms, including TDS rationalization and higher income exemptions, will increase disposable income, encouraging greater discretionary spending—especially among Gen Z. These measures position India as a global tourism hub while driving economic growth.”

“Budget announcements for FY26 have managed to hit the right balance between the need for a consumption stimulus and structural support towards a sustainable growth path for the economy.

Proposed income tax reliefs for the middle-class population should bring in plenty of cheer and boost consumption. At the same time, CAPEX thrust has been maintained in the budget with targeted support to critical sectors. The economy thus gets both consumption and CAPEX push to strengthen growth momentum in the year. 

Reforms in the identified key engines of development- Agriculture, Investment, MSMEs, and Exports, will help accelerate transformation of these sectors as key growth drivers. Focus on Agriculture and Urban transformation will significantly help in unleashing the potential of the economy in the medium term. Announcements around ‘Grameen credit score framework’ and commitment to revamp KYC norms are big positives for the lending business. Focus sectors identified for MSME support are mostly labour-intensive sectors and besides driving manufacturing push, it will also help augment employment generation, skill development, credit availability etc.

Most importantly, the underlying intent of deregulation and trust is very positive for the private sector. Overall, a well-balanced budget that sets the path for broad-based and sustainable domestic growth despite global headwinds.”

Additionally, attached are the Company’s logo and the latest photograph of our MD & CEO for your reference.

“The Cotton Productivity Mission is a vital initiative to improve cotton yield in India from the current 450-500 kg per hectare to 1,000 kg per hectare. 

This five-year, time-bound mission, driven by advanced technology and scientific support, aims to boost farmer income and ensure raw material security for the Indian textile and apparel sector.

Revisions in income tax slabs and exemptions are a positive step to boost consumption and economic growth. These measures, along with potential RBI rate cuts, will strengthen spending power and drive demand further.”

“The Union Budget announcements reflect a bold step towards transforming India’s payments ecosystem and enhancing financial inclusion across various sectors. The focus on making UPI-linked credit cards accessible to street vendors under the PM SVANidhi scheme and extending credit to 10 lakh micro-enterprises through Udyam-registered credit cards will have a direct impact on empowering underserved communities and accelerating the growth of India’s entrepreneurial spirit. 

However, while these measures are welcome, the reduction in subsidies for person-to-merchant payments — from Rs 2000 Cr last year to Rs 437 Cr this year — is concerning. At PwC, we estimate that for FY26, the subsidy should be at least Rs 4500 Cr to support further adoption of digital payments and drive the necessary infrastructure upgrades to handle increasing transaction volumes. Additionally, the continued focus on startups through the 80-IAC tax holiday and the deepening of India Post Payments Bank services across 1.6 lakh offices, presents significant opportunities. By ensuring access to affordable credit and expanding digital financial services, the government is setting the stage for a more inclusive financial ecosystem, which is crucial for the continued growth of our economy. 

To truly unlock the potential of these initiatives, sustained and well-targeted investments in both infrastructure and subsidies will be essential. The vision for a more financially inclusive India is achievable, but it requires ongoing commitment to innovation and support for all stakeholders in the payments ecosystem.”

“When startups are included in the central government’s annual budget planning, it is a moment to celebrate. We commend the Hon’ble Finance Minister for recognizing securities held by AIFs as Capital Assets—a decision that strengthens the case for CAT I & II by ensuring that gains from securities are treated as capital gains and that GST on security sales remains outside the framework. Additionally, the launch of the new ₹10,000 crore round under the Fund of Funds for Startups (FFS) scheme reaffirms the government’s dedication to fostering innovation and entrepreneurship. This renewed fund which aligns with the Startup India Action Plan and initiatives like the Startup Mahakumbh has played a pivotal role in driving India’s startup boom since its inception. We believe that increased financial support from the government, alongside efforts to reduce capital constraints and collaboration with industry will further accelerate the growth of Indian startups.”

With 80 per cent of global firms yet to establish GCCs in India, the initiative to expand these centres into tier II cities unlocks the potential to transform the country’s attractiveness as the global GCC capital while creating millions of skilled jobs, industry players noted.

On Saturday, as part of the 2025 Union Budget, Finance Minister Nirmala Sitharaman announced the formulation of a national framework to guide states in promoting Global Capability Centres (GCCs) in emerging tier II cities. This will suggest measures to enhance the availability of talent and infrastructure, building-byelaw reforms, and mechanisms for collaboration with industry.

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“The Union Budget announcements reflect a bold step towards transforming India’s payments ecosystem and enhancing financial inclusion across various sectors. The focus on making UPI-linked credit cards accessible to street vendors under the PM SVANidhi scheme and extending credit to 10 lakh micro-enterprises through Udyam-registered credit cards will have a direct impact on empowering underserved communities and accelerating the growth of India’s entrepreneurial spirit. 

However, while these measures are welcome, the reduction in subsidies for person-to-merchant payments — from Rs 2000 Cr last year to Rs 437 Cr this year — is concerning. At PwC, we estimate that for FY26, the subsidy should be at least Rs 4500 Cr to support further adoption of digital payments and drive the necessary infrastructure upgrades to handle increasing transaction volumes. Additionally, the continued focus on startups through the 80-IAC tax holiday and the deepening of India Post Payments Bank services across 1.6 lakh offices, presents significant opportunities. By ensuring access to affordable credit and expanding digital financial services, the government is setting the stage for a more inclusive financial ecosystem, which is crucial for the continued growth of our economy. 

To truly unlock the potential of these initiatives, sustained and well-targeted investments in both infrastructure and subsidies will be essential. The vision for a more financially inclusive India is achievable, but it requires ongoing commitment to innovation and support for all stakeholders in the payments ecosystem.”

“The government’s move to hike the FDI limit to 100 per cent from the current 74 per cent will be instrumental in attracting fresh capital from overseas insurers, thereby securing robust growth for the insurance sector over the next two decades.

According to government data, since 2015, when the government liberalised the foreign direct investment, or FDI, norms, and allowed at first 49% FDI in 2015 and increased it to 74% in 2021 the sector has received close to Rs 54000 crore as FDI. The hike in FDI limit to 100 per cent announced by the Union Finance Minister, Nirmala Sitharaman, in her Budget speech on Saturday, will help provide a huge fillip to the sector.

Both the Indian economy and the insurance market hold immense appeal for international insurers. However, we have too few players for a country and economy of our size. The number of players servicing the Indian market currently is comparable to much smaller emerging markets such as Malaysia and South Africa. Developed markets, on the other hand, have a much broader and deeper insurance market – the United States has over 5,000 insurers, the United Kingdom around 400, and Singapore over 200.

This scarcity is partly due to global insurers’ challenge in finding suitable local partners. With just over 60 insurers operating in life and general insurance sectors, many functioning as joint ventures, the shortage of capable and willing local partners is evident. Permitting 100 per cent FDI would be a game-changer, given its potential to address this issue.”

Finance Minister Nirmala Sitharaman’s announcement on Saturday to enhance the limit for the interest subvention scheme for Kisan Credit Cards (KCC) from ₹3 lakh to ₹5 lakh will substantially help small and marginal farmers. 

SLCM (Sohan Lal Commodity Management), Group CEO Sandeep Sabharwal said that better access to credit, particularly through the expanded reach of KCC, will improve financial liquidity for small and marginal farmers, driving rural entrepreneurship.

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“The proposed hike in tax collected at source threshold on remittances under the Reserve Bank of India’s Liberalised Remittance Scheme from Rs 7 lakh to Rs 10 lakh should benefit the travel and foreign exchange sectors. It will provide tailwinds for the outbound tourism and airline sector. Students and individuals seeking medical treatment will also benefit.”

“The Union Budget 2025-26 takes concrete steps toward strengthening India’s financial ecosystem, particularly for first-time entrepreneurs. The introduction of a dedicated scheme for five lakh first-time entrepreneurs from women, SC, and ST communities is a significant move toward fostering more equitable economic participation. Coupled with simplified financing and incubation support for social enterprises and rural businesses, these measures will create a more inclusive financial landscape.

The planned revamp of the Central KYC Registry is another critical step in reducing bottlenecks in loan processing, ensuring smoother verification, and improving access to credit. For businesses and individuals alike, streamlining this process will make financial services more efficient and accessible.

Additionally, for startups like ours, the expansion of the ₹10,000 crore Fund of Funds (FoF) offers stronger financial backing, allowing us to scale with greater agility by investing in market research and product innovation.

At its core, this budget reinforces the need for financial democratization—broadening access to capital, enhancing regulatory efficiencies, and enabling businesses to operate with greater confidence. The next phase of growth will depend on how effectively these policies translate into real, sustained economic impact.”

“By increasing the “No income tax” slab to ₹12 lakhs government has struck multiple right chords. On the one hand, they have given more money in the hands of taxpayers, and on the other hand, they have motivated people to move from the old to the tax regime much faster. Individuals with more money will increase consumption which again adds to government revenue and the new tax regime will simplify and improve tax compliance.”

“The recent budget introduces significant measures poised to invigorate the real estate sector. Allowing taxpayers to claim two self-occupied properties and increasing the TDS threshold on rent to ₹6 lakhs from ₹2.4 lakh per annum are commendable steps in the real estate sector. The revised personal income tax structure, with no tax up to ₹12 lakhs, offers substantial relief to the middle class, potentially boosting housing demand. Continued infrastructure investments and improved connectivity in metros and Tier 1 & 2 cities can unlock new development opportunities, strengthening the sector and supporting sustainable growth in the industry”

“We strongly support the 2025 budget’s transformative vision for India. The Union Budget 2025 introduces key fiscal and tax reforms aimed at boosting economic growth while maintaining fiscal discipline. The fiscal deficit is on a declining path, with FY25 at 4.8% and a prudent target of 4.4% for FY26, reinforcing the commitment to fiscal consolidation. The revised capex estimate stands at ₹10.18 lakh crore, slightly below initial projections but still supporting infrastructure development.

Significant policies include an upgradation of insurance sector FDI from 74% to 100%, set to attract larger foreign investments as well as amplify the growth for the sector; the government claimed to have its past efforts during tax reform where it had addressed faceless assessment, faster refund of taxes as well as implemented five Vivad Se Vishwas schemes to streamline tax disputes and resolve them as well.

The budget streamlines tariff rates, deregulation, and strengthening the grassroots economy. A new Income Tax Code is to be introduced next week, promising a simpler framework that reduces litigation and enhances compliance.

This is a big relief for taxpayers as no income tax will be payable on income up to ₹12 lakh, thereby significantly increasing disposable income and supporting consumption. The tax deduction limit on interest for senior citizens has been doubled from ₹50,000 to ₹1,00,000, providing greater financial relief to retirees.

The contribution of MSMEs to 45% of India’s exports makes them the rightfully second engine of growth. The classification limits for MSMEs have been enhanced. Credit access will be improved for micro enterprises with customized credit cards. It has also provided some relief on tax rationalization measures, like higher TDS thresholds, increased TCS limits on remittances under LRS, so as to reduce compliance burden and provide financial flexibility.

Overall, the budget balances growth with fiscal prudence and reinforces India’s long-term economic resilience while easing tax compliance and increasing financial flexibility for individuals and businesses alike. Budget 2025 focuses on fiscal consolidation and targeted support for MSMEs, while previous budgets emphasized broader stimulus and infrastructure spending.”

“Union Budget 2025-26: A Big Win for Personal Finance & Growth

The Union Budget 2025-26 delivers a strong push for middle-class taxpayers, making personal finance a key beneficiary. With zero tax up to ₹12 lakh under the new tax regime and simplified TDS/TCS rules, individuals will have higher disposable incomes, driving consumption and savings. The rationalization of tax slabs and compliance relief further eases financial planning, making this budget a major step toward a more taxpayer-friendly system.

Beyond tax relief, the budget supports long-term wealth creation through pro-growth policies, infrastructure investments, and MSME incentives. The ₹10,000 crore Alternate Investment Fund (AIF) for startups and higher MSME credit limits aim to boost entrepreneurship and job creation, fostering an environment where individuals can benefit from expanding economic opportunities.

On the macroeconomic front, the government maintains fiscal prudence, targeting a 4.4% fiscal deficit in FY26 while projecting a 10.1% GDP growth at current prices. Increased capital expenditure and a renewed focus on divestments ensure that growth remains sustainable, paving the way for robust financial markets and stable long-term returns for investors.

For rural and agricultural sectors, higher credit limits for farmers under the Kisan Credit Card (KCC) and dedicated support for agri-processing, including the Makhana Board in Bihar, promise income stability for millions. Similarly, trade facilitation measures like the Export Promotion Mission and Bharat Trade Net will simplify business transactions, ensuring stronger growth in global trade.

With bold reforms, tax relief, and growth-oriented measures, Budget 2025-26 strengthens personal financial security while driving India’s economic momentum. A clear focus on wealth creation, savings, and ease of doing business makes this a transformative budget for individuals and investors alike.”

“The boost to consumption by extending tax slabs and removing tax for income upto 12L, could prove to be significant to revitalise the economy. The government has put more money in the hands of the tax payer. We hope the new tax bill promised by the finance minister would make tax compliance easier and reduce the effective tax rate. It would be important to wait for the new tax bill before planning expenses and investments. Unleasing the consumption potential could benefit MSMEs as well. It was also encouraging to see the government focus on MSMEs as engine of growth. We hope to see private capex pick up from the prudence that the government has maintained on the policy front. The repositioning India post as a core logistics player can also help connect remote destinations and speed up growth.”

“The government’s focus on leveraging technology as a catalyst for growth is key to propelling India towards its global aspirations, ensuring innovation drives progress and positions the nation as a leader on the world stage. 

The announcements to set up five National Centres of Excellence for skilling, Atal Tinkering labs to foster innovation, Deeptech Fund of Funds and setting up of the CoE in AI for Education will create a systematic and progressive movement towards building future-ready skills needed for an AI economy. These will not only harness the power of emerging technologies to unlock innovation but also drive sustainable growth for the country. With responsible use of gen AI expected to add an extra $675 billion in economic value to the country by 2038, these measures will help build a future where technology and human potential go hand in hand.”

With the reduction in basic customs duties on import of motorcycles with engine capacity of 1600 cc from 50 per cent to 40 per cent and on the import of cars costing more than $40,000 from 125 per cent to 70 per cent, the Budget 2025-26 has met the demand of some luxury auto makers to bring their global technology at a reduced cost.

This may clear some misconceptions about US companies like Tesla and Harley-Davidson, Chinese manufacturers like MG and BYD, and new entrants like Vietnam-based VinFast, which are bringing their global marques into the country.

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“The Union Budget lays a strong foundation for Viksit Bharat, driving transformative reforms that will redefine India’s economic and entrepreneurial landscape. With a ₹10,000 crore boost to the Fund of Funds for Startups and over ₹91,000 crore in AIF commitments, the government is fortifying India’s startup ecosystem for exponential growth. A particularly exciting development is the exploration of a DeepTech Fund of Funds, aimed at accelerating advancements in critical technologies such as AI, quantum computing, and semiconductor research. This move aligns with India’s vision to lead the global innovation curve, ensuring that homegrown startups can compete at an international scale.

Further strengthening India’s research and innovation pipeline, 10,000 fellowships will be granted under the PM Research Fellowship Scheme, supporting cutting-edge research at IITs and IISc. This will foster a new generation of deep-tech entrepreneurs, enabling India to build world-class, tech-first startups that are not just solving local challenges but also shaping global markets.

By integrating capital accessibility, technological advancements, and academic excellence, the government has created a robust foundation for India’s entrepreneurial ecosystem to thrive. These initiatives will empower startups to drive economic growth, generate employment opportunities, and enhance India’s global competitiveness.”

“The Government’s initial Fund of Funds proved to be a pivotal catalyst in establishing India’s domestic venture capital ecosystem. Through this strategic initiative, which began with a Rs 10,000 crore corpus, startups have attracted significant investment commitments surpassing Rs 91,000 crore. This demonstrates how the original Fund of Funds effectively leveraged government support to multiply private investment in the startup sector 

This additional 10,000 crs, along with the 20,000 crs set aside for innovation and the Deeptech Fund of Fund will enable the Government to position the investment ecosystem for the next 5-7 years to bet on startups that address our key requirements on AI, Space, Semiconductors and Climate.”

In a notable shift from the capex-led growth strategy of recent years, Finance Minister Nirmala Sitharaman on Saturday presented a middle class-friendly Budget, unveiling a slew of tax benefits aimed at putting more money in the hands of common taxpayers. The landmark personal income tax cuts and other direct tax measures will result in an estimated revenue foregone of ₹1 lakh crore for the exchequer in 2025-26.

At the same time, the Budget balances growth aspirations with fiscal prudence, targeting a fiscal deficit of 4.4 per cent in 2025-26 while revising the current year’s deficit aim to 4.8 per cent. Nominal GDP growth for 2025-26 has been pegged at 10.1 per cent, slightly lower than the 10.5 per cent estimated for 2024-25 in the July 2024 Budget.

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In a much deliberated move that could speed up long-drawn bilateral investment pacts with partner countries, the government has decided to revamp the Bilateral Investment Treaty model to make it more “investment friendly”, per Finance Minister Nirmala Sitharaman’s budget announcement. 

“To encourage sustained foreign investment and in the spirit of ‘first develop India’, the current model BIT will be revamped and made more investor friendly,” Sitharaman said in her Budget 2025-26 speech on Saturday.

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For every rupee in the government coffer, the biggest pie of 66 paise will come from direct and indirect taxes, according to the Union Budget 2025-26 documents.

Around 24 paise will come from borrowings and other liabilities, 9 paise from non-tax revenue like disinvestment, and 1 paise from non-debt capital receipts, the Budget documents said.

Direct taxes, including corporate and individual income tax will contribute around 39 paise, while income tax will yield 22 paise, while corporate tax will account for 17 paise, it said.

Among indirect taxes, goods and services tax (GST) will contribute the maximum 18 paise in every rupee of revenue.

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“The government’s focus on empowering the food processing sector is a game-changer for businesses like Boba Bhai. The establishment of the National Institute of Food Technology, Entrepreneurship, and Management in Bihar, as part of a broader push to strengthen food processing activities, will not only benefit farmers but also create new avenues for skilling and entrepreneurship, particularly in the eastern region. This initiative will enhance farmers’ incomes by adding value to their produce, which will have a positive ripple effect across the supply chain.

As a brand, this initiative aligns with our strategy to source high-quality, locally processed ingredients, which will enhance the flavour and freshness of our offerings. By adding value to locally grown produce, the government is creating a sustainable supply chain that will benefit both farmers and businesses. Furthermore, the focus on creating employment opportunities will support the growth of a skilled workforce that can drive innovation and elevate customer experience in the food service industry.

The budget’s overall focus on supporting the food processing sector and enhancing infrastructure presents tremendous growth opportunities for the industry. We see this as a strong step toward strengthening India’s food ecosystem, and Boba Bhai is excited to contribute to this growing sector while supporting the local economy and expanding our presence.”

The Centre’s move to focus on personal tax reforms is expected to to stimulate middle class spending and revitalise urban demand boosting India’s consumption story and spur economic growth.

Consumer goods including FMCG, durables and retail sector are likely to see an uptick in demand believe experts. Consumer goods sector especially FMCG have been witnessing sluggish demand due to an urban slowdown for the past few quarters driven by lower and middle end of the middle income households.

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The Union Budget 2025-26 lays down a strong foundation for India to transition towards becoming a sustainable, technology-driven, and self-reliant economy. The emphasis of the government on green energy, EV infrastructure, AI-led innovation, and digital transformation closely resonates with Delta’s aim to deliver energy-efficient, smart solutions that power the future.

This would place India on further accelerated net-zero emission paths and spur technological leadership for the country simultaneously. Higher penetration of clean mobility will be facilitated through investments in modernising smart grids and EV charging infrastructure.

“It’s heartening to see the government’s vision of building Viksit Bharat by 2047 with AI and technology in the Union Budget 2025. We welcome the hon’ble Finance Minister’s announcements of establishing a Centre of Excellence for AI in Education and creating a deep tech fund to catalyze future startups. As the Economic Survey 2025 highlights, India must capitalize on AI opportunities and leverage its young and dynamic population to create a tech-forward workforce for India and for the world. This resonates deeply with Microsoft’s work in the country and our commitment to put AI in the hands of everyone. We recently announced our plans to equip 10 million Indians with essential AI skills by 2030. This includes an MoU with IndiaAI to skill 500,000 individuals, including students, educators and women entrepreneurs, by 2026. Moreover, with our strategic investments, such as the recently announced US $3 billion commitment to cloud and AI infrastructure in India, we aim to drive innovation that enhances productivity, accessibility and trust. There is no doubt AI has the potential to transform every sector of the Indian society, from boardrooms to classrooms, commerce to communities, and finance to farmers. At Microsoft, we are committed to helping India lead in an AI-centric world for its benefits to translate into ‘Sabka Saath, Sabka Vikas’.”

“The 2025 Budget underscores India’s commitment to strengthening its digital and innovation ecosystem through strategic investments in AI, skilling, and talent development. The ₹500 crore allocation for a Centre of Excellence for AI in Education is a transformative step toward integrating AI-driven solutions into learning frameworks, and equipping the workforce of tomorrow with future ready capabilities. It is encouraging to see AI increasingly recognized as a core driver of productivity and competitiveness, and this investment will accelerate India’s position as a global leader in AI innovation.

The establishment of five National Centres of Excellence for Skilling, in collaboration with global expertise, is another critical move that will strengthen India’s workforce for ‘Make in India’ and ‘Make in India for the World.’ As digital adoption surges, specialized skills in cloud, AI, and enterprise technology will be critical to sustaining India’s leadership in the global technology economy. With over 1.9 million professionals employed by GCCs in India, continued investment in skilling initiatives will not only drive business growth but also contribute to broader societal progress.

At SAP Labs India, we believe that a strong partnership between industry, academia, and policymakers is essential to translating these initiatives into tangible impact. By advancing AI-driven education, deepening SaaS expertise, and cultivating a globally competitive talent pool, India is poised to shape the future of enterprise technology and digital transformation on the world stage.”

“The recent budget introduces significant measures poised to invigorate the real estate sector. Allowing taxpayers to claim two self-occupied properties and increasing the TDS threshold on rent to ₹6 lakhs from ₹2.4 lakh per annum are commendable steps in the real estate sector. The revised personal income tax structure, with no tax up to ₹12 lakhs, offers substantial relief to the middle class, potentially boosting housing demand. Continued infrastructure investments and improved connectivity in metros and Tier 1 & 2 cities can unlock new development opportunities, strengthening the sector and supporting sustainable growth in the industry”

The Budget 2025 introduces several indirect tax measures aimed at fostering economic growth, simplifying compliance, and promoting key sectors. In GST, several key amendments impact businesses. The retrospective amendment to Section 17(5)(d) restricts ITC to “plant and machinery” instead of “plant or machinery,” potentially leading to credit denials and financial strain for businesses that previously availed ITC based on Safari Retreats Judgement.

Amendments to Section 34 make it mandatory for the recipient to reverse ITC if the supplier issues a credit note for a tax reduction, ensuring stricter compliance in input tax adjustments. Meanwhile, changes to Section 107 and Section 112 mandate a 10% pre-deposit for all penalty-only Orders, increasing financial burdens on taxpayers disputing penalties. 

On the customs front, tariff rationalization continues to support domestic manufacturing. The removal of seven tariff rates aligns with India’s long-term strategy of ease of doing business. Relief on import duties for critical minerals, life-saving drugs, and electronics will boost industrial capacity, while increased duties on select textiles encourage local production. 

With these measures, Budget 2025 reinforces India’s manufacturing, infrastructure, and healthcare growth, but certain GST changes may increase industry compliance costs and litigation risks, requiring strategic tax planning.

Investment and turnover limit for MSME shall be enhanced up to 2.5 times. This is likely to broaden the net for recognising more enterprises as MSMEs.

FDI in the insurance sector will be raised from 74% to 100%. This will help augur foreign investment in the sector and shall increase healthy competition.

Jan Vishwas bill will be introduced to decriminalise provisions under various laws. This is another step forward for promoting ease of doing business.

FY25 fiscal deficit seen at 4.8% and FY26 fiscal deficit seen at 4.4%. This indicates the priority of the Govt to keep tap on deficit and adhere to fiscal prudence.

The budget was underwhelming for markets, except for middle-class tax relief, leading to a reversal of early gains. Mid and small-cap stocks saw bigger losses, with the infra, capital goods sectors leading losses due to a modest capex outlay. PSU stocks, especially in railways and defence, dropped after rallying on hopes of higher allocations.

In contrast, FMCG, auto, and consumer-oriented sectors gained on expectations of higher demand post-tax relief. Increased agriculture and allied sector allocations raised hopes of continued recovery in rural demand, benefiting select market segments.

“The Union Budget 2025-26 takes a transformative approach to agriculture by focusing on grassroots implementation and farmer empowerment. Initiatives like the Dhan Dhanya Yojana, targeting 100 underdeveloped districts, the Makhana Development Board, and the Fisheries Export SEZ underscore a strong push for value addition and market linkages.w

With a sustained emphasis on pulses self-sufficiency and climate-resilient seeds, the budget aligns with the Aatmanirbhar Bharat vision, ensuring long-term productivity gains. By enhancing institutional support, boosting rural incomes, and modernizing farming practices, these measures will not only strengthen the agricultural sector but also position India as a global leader in sustainable and high-value farming.”

“The decision to exempt income up to ₹12 lakh from tax, as highlighted in the Honorable FM’s speech, is a game-changer for India’s financial ecosystem, particularly for retail investors. This move significantly boosts disposable income, encouraging wider participation in capital markets. It empowers the young generation & millions to invest in equities, mutual funds, and emerging financial instruments, driving India towards a more investment-oriented economy and supporting the vision of Aatmanirbhar Bharat.

The establishment of a Centre of Excellence in AI for Education will play a pivotal role in advancing financial literacy and democratizing investment knowledge. AI-driven tools will enable personalized learning, making market participation more intuitive and accessible for the next generation of investors.

Lastly, the ₹10,000 crore Fund of Funds for Startups and the Deep Tech Fund of Funds reinforce the government’s commitment to the fintech ecosystem. These initiatives will drive innovation, enhance digital financial platforms, and support the creation of next-gen investment solutions. As India moves towards Aatmanirbhar Bharat and Viksit Bharat, these reforms will propel the country into a new era of financial empowerment and inclusion.”

Cancer patients, including those on patient assistance programmes, can look forward to some relief on their imported medicines.

Medicines from multinational companies including Pembrolizumab (MSD Pharma), Lorlatinib (Pfizer), Ribociclib (Novartis), Selumetinib (Astra Zeneca), Teclistamab (Johnson & Johnson), Cetuximab (Merck Specialities), Brentuximab Vedotin (Takeda); Mepolizumab (GSK Pharma ), Risdiplam Powder (Roche), Luspatercept (Bristol Myers Squibb) are among the 37 listed to get Basic Customs Duty exemptions, provided they are given free.

Union Budget 2025: Cancer medicines and patient assistance programmes come in for reprieve

Cancer patients to receive relief on imported medicines through Basic Customs Duty exemptions and patient assistance programmes.

The establishment of a Center of Excellence (COE) in AI focused on Education with a total outlay of Rs 500 Cr. would further enable research and development in the field of AI, so that India can keep pace with the rest of the world in this space. The budget also increased the allocation to the India AI Mission by more than 11 times to 2000 Cr. from 173 Cr. as in the revised numbers for 2024-25, which further shows the commitment to AI. 

Earlier, the Economic Survey had laid an emphasis too on AI and recognised the importance and potential of Artificial Intelligence (AI) in enhancing productivity of the workforce and create a workforce for the future.

“Higher Income Tax Exemption Will Strengthen Loan Repayments and Financial Inclusion”

The budget’s focus on simplifying tax compliance and boosting MSME investments is a major win for salaried individuals and fintech lenders. The rationalization of TDS, including raising the annual limit on rent from ₹2.4 lakh to ₹6 lakh and streamlining tax deduction rates, will reduce compliance burdens and ensure more liquidity for borrowers. Additionally, the expansion of MSME investment and turnover limits (2.5x and 2x, respectively) will create more employment opportunities, directly benefiting the salaried workforce by enhancing job security and income stability.

With the income tax exemption raised to ₹12 lakh (₹12.75 lakh for salaried individuals), nearly 90% of salaried borrowers will now have more disposable income, improving repayment capacity and financial security. This will encourage responsible borrowing and investment in essential needs like housing, education and healthcare.

Furthermore, the ₹500 crore allocation for a Centre for Excellence in AI for education is a futuristic step that will strengthen India’s digital economy. AI-driven fintech solutions will play a pivotal role in enabling smarter, faster, and more inclusive credit access. At BharatLoan, we see these reforms as transformational for both borrowers and lenders, fostering economic growth and financial empowerment.

1) Manish Jain, Director - Institutional Business (Equity & FI) Division at Mirae Asset Capital Markets

Overall, positive for FMCG, Consumption, Retail, Realty, Auto and new age companies. Not as much positive for banking. Rise in gross borrowings is negative for banks as yield could rise which could impact treasury income. Fiscal deficit target at 4.8% for FY25, and 4.4% of GDP for FY26. With rationalization in direct taxes, one needs to see how government capex targets are set. Move in personal taxes and reduction in BCD in consumer electronics (like flat panel) to boost consumer electronics. Positive for shipbuilding with Maritime Development Fund outlay of Rs 25000, exemption of BCD on raw material and equipment and benefits to ship leasing units announced if they are in GIFT city. Announcements on PM Gati Shakti Data and Maps are positive for logistics players. Announcement of daycare cancer centres in district hospitals is positive for regional diagnostics companies. Promotion in medical tourism is positive for large hospitals. Increase in FDI limit in insurance sector to 100% is positive for investments in the sector. Positive move on critical minerals and BCD exemption for EV batteries to promote EV battery manufacturing in India and also positive for battery chemical manufactures.

2) Consumption Revival: The Right Pill for Ailing Economy, Manish Chowdhury, head of research, StoxBox

Amidst darkening clouds of global uncertainty and early signs of slowing economy, consumption and corporate earnings, the budget has delivered on expectations of reviving economic growth through a slew of measures along with treading a path of fiscal prudence by setting a fiscal deficit target of 4.4% for FY26. The key highlight of the budget was relief for the middle-income class through tax relief, with measures aimed to increase the disposable income and boosting consumption. The government’s capex allocation of Rs. 11.21 lakh crores in FY26 (vis-à-vis Rs. 10.18 lakh crores in FY25 RE) and efforts to align it into the most productive areas of the economy such as roads, railways, airports and infrastructure through 5-year planning is likely to have a multiplier effect and help accelerate capital formation in the economy. The intent to make these efforts percolate deep into the economy through close coordination with states (interest free loans), higher efforts towards simplifying ease of doing business (lowering TDS and TCS, decriminalization of about 100 laws) and incentives to drive investments (insurance, shipping) bode well for the long term. To sum it up, “no bad news is good news” is the essence of today’s budget and has the right ingredients to drive home the theme of predictability and conservatism from the government.

3) Dr. Koteswararao Anne, Dean of MPSTME, NMIMS Mumbai

The establishment of a Centre of Excellence in AI for Education marks a transformative step in India’s educational landscape. This initiative strategically aligns with the National Education Policy 2020’s vision of achieving 50% Gross Enrollment Ratio by 2035. By leveraging AI, India can revolutionize rural education through intelligent tutoring systems and vernacular language processing, making quality education accessible in remote areas.

The 500 Crore investment will catalyze personalized learning pathways for unemployed youth, offering targeted skill development programs aligned with industry demands. AI-driven analytics can identify regional skill gaps and customize training modules, potentially impacting crores of youth across India’s diverse socio-economic spectrum.

This initiative perfectly complements NEP 2020’s emphasis on multidisciplinary education and digital literacy. The potential to integrate AI with traditional teaching methods could significantly improve learning outcomes while preserving India’s rich educational heritage, positioning India as a global leader in educational technology and creating an inclusive, future-ready educational framework.

4) Dr. Sagnik Bagchi, Assistant Professor, Economics (School of Business Management) NMIMS Mumbai

The stock market response has been mixed and been cautious. Initially, after days of high volatility, the Indian stock market has responded well to the budget proceedings. NIFTY50, NIGTY Bank, FINNIFTY and other indices of the Indian market have shown an increase but goes down by about 2-3%. The announcement of increasing no income tax slab has just moved the mood of stock market cautiously upward but yet to gain back the initial momentum.

The sustained focus on capital expenditure by Government of India has created a positive momentum for infrastructure and its related sectors. Key sectors like insurance, energy and power, banks, FMCG had a positive impact. The market also witnessed fluctuations of 2-3% depicting a cautious approach.

5) Prakarsh Gagdani, CEO, Torus Digital

Increased money in the hands of taxpayers will drive more consumption. A portion of that might flow to the capital market but not substantially.

Secondly, retail participation in markets is any way at an all-time high. Markets will show growth more from corporate earnings, and overall growth in the economy and not from domestic money flowing into capital markets.

6) Dr. Neha Chhabra, Associate Professor, Financial Modelling, Risk Management, NMIMS Bengaluru

The Union Budget 2025 marks a strategic step toward realizing the vision of Viksit Bharat (Developed India) by fostering fiscal prudence, sustainable economic growth, and workforce development through education and technology. Anchored around four key economic engines—Agriculture, MSMEs, Investment, and Exports—the budget sets a strong foundation for long-term economic resilience and global competitiveness. A major thrust is also given to exports, with a focus on Digital Public Infrastructure, MSME support, and fiscal policies designed to enhance India’s global competitiveness. The Critical Minerals Development Scheme will be instrumental in ensuring raw material security for key industries, boosting international trade prospects. The budget’s personal income tax relief measures and reductions in customs duties, particularly for essential goods such as life-saving drugs, will further stimulate consumption and economic expansion.

For the MSME sector, the budget introduces targeted reforms, including enhanced credit guarantees, support for first-time entrepreneurs, and incentives for innovation-led growth. With schemes like Startup India and the Startup India Seed Fund, the government is fostering an entrepreneurial ecosystem that will create jobs, stimulate domestic industries, and enhance economic diversification. These measures will strengthen the MSME backbone, which contributes nearly 30% to India’s GDP and plays a crucial role in employment generation.

Domestic consumption was facing a threat from the slowdown due to inflationary pressures; addressing these issues and mitigating this risk of further slowdown and reviving consumption, the government has taken measures in the Union Budget to boost domestic consumption in both urban and rural areas. Some of the measures taken by the government include changes in the income tax structure, where there will be no income tax till 12 lacs income, which was earlier up to 7 lacs. As a result, there will be high disposable incomes in the hands of the people, ensuring increased demand for FMCG products. Further, rural consumption, which is already seeing gradual recovery, is now expected to grow at a faster pace due to schemes like the Dhan-Dhaanya Krishi Yojana, which will enhance agricultural productivity, improve irrigation systems, and facilitate farmers with long-term and short-term credit, resulting in improving the farmer’s income and boost rural consumption. An increased focus on improving the infrastructure will assist in reaching the deep pockets of rural India, expanding geographical reach through various distribution channels and boosting consumption. Overall, the government’s prioritized focus on increasing consumption has gained positive momentum in the FMCG sector. With vast footprints in urban and rural areas, HUL and Dabur will benefit the most from this positive momentum.

Overall, positive for FMCG, Consumption, Retail, Realty, Auto and new age companies. Not as much positive for banking. Rise in gross borrowings is negative for banks as yield could rise which could impact treasury income. Fiscal deficit target at 4.8% for FY25, and 4.4% of GDP for FY26. With rationalization in direct taxes, one needs to see how government capex targets are set. Move in personal taxes and reduction in BCD in consumer electronics (like flat panel) to boost consumer electronics. Positive for shipbuilding with Maritime Development Fund outlay of Rs 25000, exemption of BCD on raw material and equipment and benefits to ship leasing units announced if they are in GIFT city. Announcements on PM Gati Shakti Data and Maps are positive for logistics players. Announcement of daycare cancer centres in district hospitals is positive for regional diagnostics companies. Promotion in medical tourism is positive for large hospitals. Increase in FDI limit in insurance sector to 100% is positive for investments in the sector. Positive move on critical minerals and BCD exemption for EV batteries to promote EV battery manufacturing in India and also positive for battery chemical manufactures.

The Budget announcements are sending a clear message that Government will focus on governance, creating capacities, creating conditions conducive for compliance, execution and implementation of policies. The onus of demand creation has shifted to the private sector, middle class and the wider populace. The next logical conclusion to the theme would be easier credit and monetary conditions which would enable greater risk taking by the masses.

Tax slabs have been rationalised in personal income tax, increasing the purchasing power of the consumers. Demand will get a boost specially in consumer discretionary items like FMCG, auto etc. Government has not been able to spend in capital expenditure of 11 lakh crores this year, probably because of lack of credible projects and the increase in the outlay for next year to only 11.21 lakh crs is slightly disappointing. The private sector is unlikely to undertake large capex due to uncertainty over tariff wars and fears of dumping form China. It puts growth outlook under a cloud in the short run. The Government has undertaken measures to increase credit to important sectors like MSMEs and agriculture though. There has been emphasis on capciaty creation in areas like education, health which will have long term benefits.

It is a bold budget, as it takes a chance of putting the Indian consumer at centrestage. The demographic dividend in Indian democracy should create demand, which is a step in the right direction. Markets could be disappointed as a higher Government capex would have spurred demand faster in a shorter run. Government has lowered the fiscal deficit, which is good for the private sector. The stage is set, the baton has been passed on to the consumer. Now it depends upon the resilience of the Indian middle class and the spirit of the private sector which will dictate the pace of Indian economic growth. 

Finance Minister Nirmala Sitharaman’s Union Budget 2025-26 introduces significant measures aimed at boosting economic growth and providing relief to taxpayers — especially the middle class. 

Zero income tax for up to Rs 12 lakh of earnings, and further rebate in taxes, is a major relief for the middle class, and we welcome it. It could improve disposable income, stimulating consumer demand and contributing to overall economic momentum. 

The rationalization of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) thresholds is a commendable step towards simplifying the tax regime, reducing compliance burden for individuals and businesses alike. 

These initiatives reflect a balanced approach to fiscal policy, addressing both the need for revenue generation and the importance of taxpayer welfare.

We were hopeful that the government would take steps to rationalize the tax structure on VDAs, but unfortunately, that has not materialized. However, the inclusion of VDA governance in the Finance Bill is a positive step, bringing in more regulatory clarity, reflecting the growing adoption of digital assets and acknowledging the impact they are making on the economy.

We are still reading the fine print to understand the broader implications.

“India is at the cusp of a healthy snacking revolution, and makhanas form a pivotal part of the same. As a driving force of healthy snacking with a range of makhanas and makhana-based snacks, we welcome the establishment of a Makhana Board in Bihar as a transformative step in India’s healthy snacking revolution. This superfood from our motherland is now positioned to make its mark on the global health food landscape. The Board’s formation will streamline the entire value chain - from production and processing to value addition and marketing of fox nuts. For farmers engaged in makhana cultivation, this initiative opens doors to skill development and institutional support, creating a win-win ecosystem for both agricultural communities and leading industry players like Farmley.” 

About Farmley

Farmley is reimagining makhanas, dry fruits and nuts in lip-smacking flavours and innovative snacking formats. Their roasted peri peri makhanas, thai chilli cashews and delightful date bites are winning hearts as well as taste buds across the country. Their deep sourcing mechanisms, in-house production facilities and an innovative product development team helps them come up with unique products that have the best of health & taste in every bite. Endorsed by former Indian cricket captain, Rahul Dravid, Farmley is emerging as the most loved healthy snacking new age brand. Farmley’s range of wholesome snacks is available on online commerce platforms including Amazon, Flipkart, Blinkit, Zepto and Instamart, along with retail stores near you.

In the Union Budget 2025, significant changes have been introduced to the personal income tax structure to enhance the spending power of the middle class and stimulate economic growth. One of the key reforms is the increase of the nil personal income tax slab to 1.2 million, meaning that individuals with an annual income up to 12 lakh are now exempt from paying income tax.

This adjustment is a substantial shift from the previous tax regime, where incomes above 10 lakh were taxed at 30%. By raising the exemption limit, the government aims to increase disposable income for a significant portion of the population, thereby boosting consumption and contributing to economic growth. 

For individuals earning exactly 12 lakh annually, this change eliminates their income tax liability, effectively increasing their net income. This move is expected to positively impact consumer spending and provide financial relief to the middle class. 

It important to note that these changes are part of the government broader strategy to support inclusive development and stimulate private investment. As with any policy change, it advisable for taxpayers to review the new tax provisions in detail or consult with a tax professional to understand how these changes specifically affect their financial situation.

“The Union Budget 2025 marks a significant step forward for Global Capability Centers (GCCs) with the expansion of safe harbor rules and a structured approach to determining arm’s length pricing for international transactions. This move is set to create a more predictable and efficient regulatory environment, reducing compliance complexities and minimizing litigation risks. By fostering greater ease of doing business, India strengthens its position as the global hub for GCCs, driving sustained growth and competitiveness in the years ahead.”

The government will introduce a new Income Tax bill next week to take forward the “trust first, scrutinise later” concept, Finance Minister Nirmala Sitharaman said on Saturday.

In another major reform move, the minister announced that the Foreign Direct Investment (FDI) in the insurance sector will be increased to 100 per cent from 74 per cent.

Presenting the Budget for 2025-26, Sitharaman said that over the past 10 years, the government has implemented several reforms for the convenience of taxpayers, including faceless assessment.

Govt to introduce new I-T bill in Parliament next week; to raise insurance FDI to 100%

Finance Minister announces increase in FDI in insurance sector, simplification of Income Tax law, and reforms for taxpayers.

To boost the electric vehicles (EVs) and mobile phones sectors, the Budget 2025-26 has proposed to add 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing.

“I propose to add 35 additional capital goods for EV battery manufacturing, and 28 additional capital goods for mobile phone battery manufacturing. This will boost domestic manufacture of lithium-ion battery, both for mobile phones and electric vehicles,” Nirmala Sitharaman, Finance Minister, said on Saturday.

Union Budget 2025: FM proposes 35 additional capital goods for EV battery manufacturing to boost local industry

Budget 2025-26 proposes boosting EV and mobile phone sectors with additional capital goods for battery manufacturing.

Development measures focused on Garib, Youth, Annadata and Nari are contextually significant and welcome. 

There are significant measures here to boost agricultural production and productivity. 

MSMEs are a driver of both economic growth and structural transformation. Hence measures aimed at higher Credit guarantee cover, thrust on exporter MSMEs and a sharper focus on start-ups will provide an impetus to broad-based economic growth and modernisation. 

Entirely in line with our expectations, the fiscal deficit number for FY 25 has come in at 4.8 % - below the budgeted level of 4.9 %- and for FY 26 at 4.4 %. This is greatly welcome for the domestic macroeconomy and will send the right message to global investors, multilateral institutions and the global rating agencies.

As visualised by us and strongly stressed on multiple channels and in various mediums, the middle class has been given a welcome relief with no 

Income Tax upto Rs.12 lakhs Income. For salaried persons, it will go up to Rs. 12. 75 lakhs by factoring in standard deduction. 

In sum, this Budget is marked by cross-cutting strategically themes of fiscal prudence, economic growth, structural transformation and distributive equity

In view of the ravages of the inflationary spiral and the shrinking disposable income, this enhanced income tax limit will be welcome across the development spectrum.

In sum, the Budget is marked by an accent on fiscal prudence, economic growth, structural transformation and the needs of the middle class. 

Given the heightened global dynamics and the macroeconomic changes, the FM has done the best of a difficult task.

“The Union Budget 2025-26 is a well-balanced and growth-oriented budget that prioritizes middle-class spending, rural prosperity, and MSME empowerment. The incrViksitn the income tax exemption limit to ₹12 lakh will directly boost demand for two-wheelers, passenger vehicles, and EVs, as consumers have more disposable income to upgrade their vehicles.

For the rural economy, the Dhan Dhanya Krishi Yojana, benefiting 1.7 crore farmers, along with the Kisan Credit Card loan limit expansion, will drive demand for tractors, small commercial vehicles, and two-wheelers. MSMEs, which form the backbone of the economy, are set to thrive with higher credit limits, enhanced fund-of-funds for startups, and new financing options—a move that will also encourage the expansion of auto dealerships and fleet businesses.

The National Manufacturing Mission and incentives for solar, EV batteries, and clean mobility infrastructure will accelerate the growth of the EV sector while making India a global hub for sustainable mobility. Additionally, the increase in FDI for insurance to 100% will bring more competition and innovative financing options for auto buyers, further stimulating demand.

FADA welcomes this progressive budget, which will fuel India’s auto retail sector across rural, urban, and electric vehicle segments, supporting the vision of ‘Viksit Bharat’ and sustainable mobility.”

The budget for the financial year 2025-26—the first full-year budget of the NDA’s third term—presented by Hon’ble Finance Minister Smt. Nirmala Sitharaman aims to accelerate growth by providing a fillip to investment (capex up 10% to Rs 11.2 lakh crore) and a significant increase in the spending power of middle class (the nil-tax slab has been raised over the years from Rs 2 lakh to Rs 5 lakh to Rs 7 lakh over the years, but now there is no tax payable up to Rs 12 lakh on income), while maintaining on the path of fiscal consolidation. A comprehensive framework of reforms across six major domains including taxation, power sector, urban development, mining, and financial sector has been laid out, to promote sustainable and inclusive growth, with Agriculture, MSMEs, investment and exports identified as major engines of this growth.

Enhanced definition and access to credit for MSMEs and start-ups, streamlined export credit, extension of interest-free loans to states, and measures to boost India’s positioning in global trade would ensure India remains the fastest growing major economy. The budget also focuses on promoting ease of doing business, by simplifying the regulatory framework, rationalising tax regime to reduce compliance burden and litigation further, enhancing FDI limit in insurance from 74% to 100%, fast tracking mergers, and promoting trust-based economic governance, continuing the reliance on technology-based solutions. The growth-supportive measures were accompanied with continued support on social-welfare, with a slew of measures announced to provide quality education, affordable healthcare, employment skilling opportunities, and enhance women participation in labour force.

The budget manages to deliver on consumption, investment and social welfare without compromising on fiscal prudence. The fiscal deficit to GDP for FY26 is budgeted at 4.4% of GDP, ensuring a downward trend in debt to GDP levels.

Overall, the budget places India in a strong position and shall play an important role in towards achieving the objective of Viksit Bharat by 2047.

“The government’s commitment to inclusive growth through entrepreneurship is truly commendable. While the ₹10,000 crore allocated for a fund of funds for AIFs is a welcome boost for risk capital, and particularly beneficial for VC-investable startups, a more holistic approach to ecosystem development might be considered to further support the creation and commercialization of innovation, especially for those higher-risk, non-VC-friendly models. This ₹10,000 crore catalytic fund, with its focus on deep tech, is an interesting development and should encourage greater VC participation, incentivizing them to raise and invest additional capital from their own sources.” 

In its efforts to boost the consumption of fruits and vegetables, the Government will launch a programme in partnership with State governments.

Presenting the Union Budget for 2025-26 on Saturday, Nirmala Sitharaman, Union Finance Minister, said: “With rising income levels, the consumption of vegetables, fruits and shree-anna is increasing significantly. A comprehensive programme to promote production, efficient supplies, processing, and remunerative prices for farmers will be launched in partnership with states.”

Govt to launch programme to promote production of fruits and vegetables

Government launches programme to boost fruit and vegetable consumption, improve infrastructure, and support farmers in Budget 2025.

There were three key objectives, and I completely agree that all three were very important. The first was how to drive growth, the second was how to be more inclusive, and the third was how to increase private sector participation. 

On growth, it was crucial because the previous year saw 8.5% and 8.2% growth, which was moderating to 6.5%. Maintaining a focus on growth was essential. To address this, the government has planned a significant capital expenditure for the coming year, which is great news. This will sustain demand for goods and services, especially in infrastructure, and also create jobs. 

Additionally, a major highlight was the personal income tax changes, which will leave people with more disposable income. Increased spending will further boost growth. 

There have also been several reforms and improvements in the ease of doing business for the private sector, which will ultimately drive further growth.”

“The budget has provided a significant boost to the MSME sector by significantly raising the thresholds for capital investment and turnover criteria for classification as Micro, Small, or Medium enterprises. Combined with the enhanced credit guarantee scheme, this move is expected to drive increased capital investment. This would help MSMEs to modernise and expand their operations. Improved credit flow for startups is also a very welcome move. With the personal tax burden also coming down sharply, the increased consumption power should also help increase the overall demand for goods and services from MSMEs”

Indian equity markets traded lower in mid-day trading on Thursday following the Union Budget announcement, with both benchmark indices showing modest declines.

The BSE Sensex dropped 182.98 points or 0.24 per cent to 77,317.59, while the Nifty50 fell 66.10 points or 0.28 per cent to 23,442.30 as of 12.30 PM.

Markets edge lower post-budget; Auto, FMCG stocks shine while infrastructure lags 

Indian equity markets decline post-Budget announcement, with auto and FMCG stocks leading gainers; tax reforms expected to boost consumer spending.

From a real estate perspective, the budget delivers both direct and indirect benefits, acting as a catalyst for growth. However, a notable shortfall was the absence of major announcements for the affordable housing sector, leaving stakeholders disappointed.

Despite this, the budget overall remains strong and growth-oriented, with a clear focus on economic development and enhanced consumption. Key takeaways for the real estate sector include:

Income Tax Relief for the Middle Class

The finance minister announced zero income tax for individuals earning up to INR 12 lakh annually, providing a major consumption boost. This move is also expected to strengthen demand for affordable housing. Additionally, the new income tax bill will retain nearly 50% of existing provisions while introducing personal tax reforms and rationalizing TDS and TCS regimes by streamlining rates and thresholds.

Tax Benefits for Residential Property Investors

Investors can now claim Nil valuation for two self-occupied properties, instead of just one - a positive move for residential real estate investment. The simplified TDS on rent decreases the compliance burden and enhances liquidity for landlords and will positively impact the rental housing market, especially in metro cities. 

Previously, homeowners could claim only one self-occupied property as tax-free; now, they can claim two - thereby removing taxation on notional rental income from a second home. This step minimizes tax pressures, promotes homeownership, and facilitates real estate investment, especially in second homes and Tier 2 and 3 cities. Middle-class homebuyers, landlords, and investors can now benefit from reduced tax liabilities, better affordability, and less compliance hassles. By simplifying financial constraints and tax rules, the budget has made property ownership and rental housing more accessible. This gives a significant fillip to the real estate sector, specifically to and housing demand.

₹1 Lakh Crore Urban Challenge Fund for New-Age Cities - The establishment of this massive urban development fund will enhance infrastructure, unlock real estate potential, and transform cities into major growth hubs.

SWAMIH Fund Allocation of INR 15,000 Crore - This initiative will facilitate the completion of over 1 lakh stalled residential units, providing much-needed relief to homebuyers, especially in the National Capital Region (NCR).

Revamped UDAAN Scheme to Improve Connectivity - The restructured UDAAN scheme aims to connect 120 new destinations and serve over 4 crore passengers in the next decade. Greenfield airports in Bihar and other regions will be developed to support this expansion. This enhanced connectivity is expected to boost real estate demand in Tier-II and Tier-III cities.

PM Gati Shakti Data Access for Private Sector & Tourism & Warehousing Infrastructure Boost - The government will open PM Gati Shakti data to private players, while 50 top tourist destinations will be developed in collaboration with state governments. Additionally, hotels will be included in the harmonized scheme for tourism infrastructure, leading to enhanced real estate opportunities in major tourist hubs. This will also benefit the warehousing sector across the country.

Support for Global Capability Centres (GCCs) - A national guidance framework will be introduced to help states attract and promote GCCs, strengthening India’s position as a global business hub. Given India’s rising economic influence, this move is expected to fuel office space demand in major metros like Bengaluru, Mumbai, Hyderabad, Pune, and Chennai, as well as Tier-II and Tier-III cities.

₹1.5 Lakh Crore Fiscal Support for MSMEs - The allocation of INR 1.5 lakh crore to MSMEs is expected to spur capacity expansion, creating a ripple effect that will positively impact industrial real estate.

While the affordable housing sector saw fewer direct benefits, the budget is, overall, pro-growth, infrastructure-driven, and investment-oriented. The focus on middle-class relief, urban development, and connectivity is expected to stimulate real estate demand across various segments, making it an overall progressive and impactful budget.

“The announcements around easing TCS are a welcome move and align with the government’s objective to reduce the tax compliance burden on individual investors. Removing TCS on education-related remittances funded through loans and raising the TCS threshold under the Liberalized Remittance Scheme from ₹7 lakh to ₹10 lakh is a smart move and helps simplify tax compliance for individuals. These changes not only make it easier for students and families managing educational expenses abroad but also offer greater flexibility for investors diversifying into global markets, including US stocks.”

“Reduction to some extent actually helps break down the costs of lithium-ion batteries, which are a key component for EVs. This, in turn, will spur greater adoption of EVs. Right now, we have very low penetration in passenger cars, at about 2%, with slightly higher penetration in scooters. 

If the customs duty is indeed reduced, it should bring down the cost of goods, lower the cost per kilowatt-hour, and improve the overall economics of EVs. This would reduce the sticker price and further boost EV penetration. We are quite optimistic about EV adoption increasing.”

“The doubling of MSME limits is a much-needed boost for India’s evolving digital infrastructure industry, enabling businesses to achieve greater scale and competitiveness. Additionally, the reduction in BCD on internet equipment and lithium batteries will significantly benefit the telecom sector by improving network resilience and expanding connectivity. Lower mobile costs will accelerate 5G adoption, further driving digital transformation. The reduction in IT tax slabs will strengthen middle-income spending, positively impacting retail and hospitality sectors. Lastly, the commitment to bringing the fiscal deficit down to 4.8% showcases strong economic discipline, enhancing India’s attractiveness for FDI and making capital more accessible to high-growth companies.”

The Budget primarily focuses on accelerating economic growth and strengthening the middle class. Key highlights include 

the standard deduction that has been increased by 50% to ₹75,000, providing significant relief to the middle class.

As expected, MSMEs have been a key focus of this Union Budget. The investment limit for MSME classification will be increased by 2.5 times, and turnover limits have also been doubled. Additionally, there will be an expansion in credit guarantee coverage and the introduction of customized credit cards for micro enterprises to enhance their financial stability. Various schemes will also support workers, the food industry, the toy industry, and the footwear and leather industry.

A new tax bill, aligned with the Direct Tax Code (DTC), will be introduced next week to simplify tax burdens for both individuals and businesses.

Overall, this is a pro-middle-class budget, aligned with the vision of Sabka Saath, Sabka Vikas, Sabka Prayaas.”

“The Union Budget 2025 has brought forth significant reforms aimed at revitalizing the real estate sector, particularly in the affordable housing segment. The reintroduction of the Credit-Linked Subsidy Scheme (CLSS) and tax exemptions for developers focusing on affordable housing will not only encourage homeownership among the economically weaker sections but also drive much-needed growth in the sector. These measures will play a crucial role in making housing more accessible and affordable for millions of Indians.” — Akshat Khetan, Founder, AU Corporate Advisory and Legal Services

* Amidst darkening clouds of global uncertainty and early signs of slowing economy, consumption and corporate earnings, the budget has delivered on expectations of reviving economic growth through a slew of measures along with treading a path of fiscal prudence by setting a fiscal deficit target of 4.4% for FY26. The key highlight of the budget was relief for the middle-income class through tax relief, with measures aimed to increase the disposable income and boosting consumption. The government’s capex allocation of Rs. 11.21 lakh crores in FY26 (vis-à-vis Rs. 10.18 lakh crores in FY25 RE) and efforts to align it into the most productive areas of the economy such as roads, railways, airports and infrastructure through 5-year planning is likely to have a multiplier effect and help accelerate capital formation in the economy. The intent to make these efforts percolate deep into the economy through close coordination with states (interest free loans), higher efforts towards simplifying ease of doing business (lowering TDS and TCS, decriminalization of about 100 laws) and incentives to drive investments (insurance, shipping) bode well for the long term. To sum it up, “no bad news is good news” is the essence of today’s budget and has the right ingredients to drive home the theme of predictability and conservatism from the government.

Chemical Sector - Agrochemical, Prathamesh Masdekar, Research Analyst, Stoxbox

* The Prime Minister Dhan-Dhaanya Krishi Yojana’s Agri Districts Programme is a significant initiative aimed at boosting agricultural productivity and rural prosperity. Covering 100 districts with low productivity, moderate crop intensity, and below-average credit parameters, the programme focuses on enhancing productivity, crop diversification, post-harvest storage, irrigation facilities, and credit availability. By integrating existing schemes and introducing specialized measures, this initiative is expected to benefit 1.7 crore farmers, significantly strengthening India’s agricultural sector and making it more resilient and productive.

Positive for Agrochemical companies - RCF, Chambal Fertilizer, Paradeep Phosphate

Union Budget Set to Propel India’s Automotive Industry Forward, Sagar Shetty, Research Analyst, StoxBox

* Despite facing a slowdown in overall demand and industry-wide challenges, the Union Budget has delivered a substantial uplift to India’s automotive sector. By introducing a favourable tax structure, we anticipate an improved demand sentiment, especially for entry-level cars, which have seen sluggish growth recently. On the EV front, with the Finance Minister’s announcement of exemptions from basic customs duty (BCD) for 35 additional capital goods for EV battery manufacturing, the space is poised to witness increased adoption driven by reduced production costs, the impact of which would be brushed off on the end price of the product. Moreover, the government has removed the BCD on essential materials like cobalt, lithium-ion battery scrap, lead, zinc, and 12 other critical minerals, which are key for the manufacturing of batteries, semiconductors, and renewable energy equipment. This move promotes higher levels of localization among manufacturers, safeguards India’s emerging EV market, and creates a conducive production environment. These initiatives, coupled with PM e-Drive and a strong focus on the “Make in India, Make for the World” vision, the sector is now better shielded against the challenge of cheap imports. We believe Exide Industries Ltd and Amara Raja Energy & Mobility Ltd would likely be the key beneficiary given their position in the EV battery space.

Banking Sector, Abhishek Pandya, Research Analyst, StoxBox

The Union Budget reveals positive trends for the overall banking sector. The MSME segment has received a significant boost, with the credit guarantee cover for micro-enterprises increasing from Rs. 5 crore to Rs. 10 crore. This adjustment is expected to generate an additional Rs. 1.5 lakh crore in credit over the next five years. Furthermore, the introduction of personalized credit cards for micro-enterprises represents a significant step in enhancing liquidity. Overall, these measures are likely to improve credit growth in the banking industry in the coming years. From an insurance perspective, there has been a notable enhancement, as the FDI limit has increased from 74% to 100%. This change is expected to attract essential capital, improve competition, and increase insurance penetration. In support of farmers, the Kisan Credit Card (KCC) program will facilitate loans for 7.07 crore farmers. Additionally, the loan limit under the KCC will be raised from Rs. 3 lakh to Rs. 5 lakh. Overall, this Union Budget lays out a blueprint for the future, with a special emphasis on increasing capital expenditure (capex), boosting the MSME sector, and enhancing the insurance sector. Collectively, these factors are key catalysts for improving the overall economy, credit growth, and liquidity in the system. 

Positive for BFSI sector – ICICIB, SBIN, HDFC Life and SBI Life

“The Union Budget 2025 presents a promising roadmap for India’s hospitality and tourism sector, with a strong focus on infrastructure development, skill enhancement, and connectivity. The emphasis on developing the top 50 tourist destinations, along with streamlined visa policies and Mudra loans for homestays, will significantly boost domestic and international tourism. Initiatives like performance-linked incentives for states and skill development programs in hospitality will help elevate service standards and create new employment opportunities.

Furthermore, the expansion of the Udaan scheme and the development of Greenfield airports will enhance accessibility, making travel more seamless for tourists. At Bright Hospitality, we see these measures as a catalyst for growth, allowing us to expand our footprint and continue delivering exceptional culinary and hospitality experiences. We look forward to leveraging these opportunities to contribute to India’s evolving hospitality landscape.”

1) Market Impact of Budget 2025

Ans: The Union Budget 2025 has introduced several tax reforms and sector-specific initiatives that are likely to shape market sentiment and economic growth. The decision to forgo ₹1 lakh crore in direct taxes and offer full tax exemption up to ₹12 lakh income under the new regime is expected to boost consumer spending, benefiting sectors such as FMCG, automobiles, and retail. The middle class and salaried professionals will have more disposable income, driving demand in these areas. 

The increased capital expenditure (₹11.1 lakh crore) signals a continued push for infrastructure development, benefitting companies in construction, cement, and steel sectors. Additionally, the government’s support for domestic electronics manufacturing, nuclear energy expansion, and MSME growth should create more investment opportunities in these industries. The relaxation of TCS on foreign remittances for education and simplification of TDS provisions also ease compliance burdens, which will positively impact businesses and international investments. 

Stock markets typically react to fiscal policies, and the fiscal deficit at 4.8% of GDP, along with continued government borrowings, may trigger short-term volatility in bond yields and equity markets. However, the push for urban infrastructure, medical education, and MSME support is likely to attract long-term investments, benefiting banking and financial services sectors. Investors should also watch for sectoral movements in pharmaceuticals & renewable energy as government incentives will fuel their growth. 

2) Post-Budget Financial Planning for Investors 

Given the tax relief and new income tax slabs, investors should reevaluate their financial strategies. The exemption on income up to ₹12 lakh under the new regime might make it more attractive for taxpayers compared to the old system, prompting a shift in investment planning. 

- Tax Planning: High earners (₹18 lakh+) benefit from a ₹70,000 tax reduction, making it wise to assess whether to opt for the new tax regime. With increased TDS limits on rent (₹6 lakh) and senior citizen interest deduction (₹1 lakh), real estate investments and fixed-income options become more appealing. 

- Savings & Investment Strategy: The focus on MSMEs and startups presents an opportunity to invest in businesses that will benefit from government policies. Additionally, critical minerals, infrastructure, and power sector investments offer long-term growth potential.

M&A

Rajesh Narain Gupta, Founder and Chairman of SNG & Partners, Advocates & Solicitors

Budget looks quite reformative with serious push in Agriculture, Rural, SSME, BFS Sector, Investments, hospitality, housing, payment systems and financial inclusion. Infrastructure bonds and setting up pension products is a good idea. The message to Income Tax department to trust first and investigate later is a new dimension. M & A is proposed to be made easy with simplified procedures. Regulatory reforms committee to consider trust based economic measures and ease of doing business reflect intentions of government to boost trade and commerce. Intention to additional decriminalize more than 100 provisions in various laws is a welcome idea.

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MSME Sector

Dhruv Chopra, Managing Partner at Dewan PN Chopra

As of 2025, India has 164,987 post offices, making it the largest postal network in the world. Of these, **149,164 post offices are in rural areas, ensuring postal coverage in nearly all villages nationwide. It is proposed in budget 2025 to make these post offices logistics hubs and networks to be used by entrepreneurs, women, and micro and MSME businesses. This is an excellent initiative to optimize one of India’s marque asset bases and networks.

Startup Sector

Dhruv Chopra, Managing Partner at Dewan P N Chopra & Co

Fund of funds to support startups in 27 focus sectors. The government will infuse 10000 Cr additional funds into these fund of funds increasing the total allocation to 20,000 Cr, to propel entrepreneurship and growth in startups

DeepTech Fund

Dhruv Chopra, Managing Partner, Dewan P N Chopra & Co

Support innovation with investment of inr 20,000 crores including in a deep tech fund of funds to promote research and development in india. 10,000 fellowships will also be given for research in IITs and their ilk enabling innovation hubs

Parveen Kumar, Partner - Direct Tax at Dewan P N Chopra & Co

Hon’ble Finance Minister Just announced that New Income Tax Bill will be introduced next week. The New Income Tax Bill is expected to revamp the 64 years old Act. The new Inncome tax bill is proposed to make tax compliance easier for taxpayers and make the Income Tax Act easier to read and understand.

Tax reforms

Parveen Kumar, Partner - Direct Tax at Dewan P N Chopra & Co

Finance Minister Nirmala Sitharaman highlighted the government’s decade-long efforts in implementing tax reforms to enhance taxpayer convenience. Key measures include faceless assessment, the taxpayer charter, and faster processing of returns, with nearly 99% of returns being based on self-assessment. Reaffirming the tax department’s approach of “trust first, scrutinize later,” she emphasized the continued commitment to easing compliance.

FDI in Insurance

Dhruv Chopra, Managing Partner, Dewan P N Chopra & Co

FDI in Insurance sector Increased from 74% to 100%, Announces FM. The revised FDI cap will apply to insurance companies that retain their entire premium investment within India. Existing regulations and conditions governing foreign investment in the sector will undergo review and simplification.

Basic Customs Duty

Shivashish Karnani, GST Division at DPNC Global

Social welfare surcharge currently being levied at the rate of 10% on the basic customs duty under customs laws to be removed for 82 tariff line items. Also, 36 life-saving drugs to be fully exempted from basic customs duty. This will give boost to the imports of these life-saving drugs and the consumers.

35 capital goods added to customs duty exemption list relating Lithium ION battery manufacturing and mobile phone battery manufacturing. This will give boost to the domestic manufacturing of EVs & mobile phones and thus contributing to the make in India.

Patient Assistance Programs: Patient assistance programs run by pharmaceutical companies will be fully exempt from Basic Customs Duty (BCD), provided the medicines are supplied free of cost to the patients. Additionally, 37 new medicines and 13 new patient assistance programs will be included in the exemption list. This will give fillip to the health care sector in India

Currently under the Customs laws, there is no time limit under Section 18 dealing with provisional assessment. Proposal is to fix a time limit of 2 yrs extendable by a year to finalise provisional assessment under the Customs law. This will bring the transparency and certainty as no time limit used to leave the taxpayers prone to delayed assessment and risk of heavy duty liabilities 

Income Tax Reforms

Abhishek Sharma, Transaction Tax & Regulatory Services, Dewan P N Chopra & Co

The new income tax bill is designed to be clear and direct in its language, ensuring simplicity and ease of understanding for both taxpayers and tax administrators. Its straightforward text aims to eliminate confusion, making it more accessible and user-friendly for all stakeholders involved.

Proposing to remove TCS on remittances for education purposes if the remittance is funded through a loan taken from a specified financial institution. Omitting TCS on transactions related to the sale of goods to reduce compliance difficulties.

The Jan Vishwas 2.0 Bill

Parveen Kumar, Partner - Direct Tax at Dewan P N Chopra & Co

Hon’ble Finance Minister Just announced that ‘The Jan Vishwas 2.0 Bill seeks to decriminalize over 100 provisions across existing laws. To support the “Make in India” initiative, the Government of India has enacted the Jan Vishwas (Amendment of Provisions) Act, 2023. With the primary objective of decriminalising minor offences across 42 Central Acts, the Act eliminates 183 criminal provisions across 19 Ministries/Departments.

Dhruv Chopra, Managing Partner, Dewan P N Chopra & Co

The Hon’ble Finance Minister announced that the merger process will be accelerated through a simplified Fast Track Merger framework, along with an expanded scope to facilitate smoother and more efficient mergers.

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Manufacturing Sector

Dinesh Kumar, Partner, Indirect Tax, BDO India

“The Focus Product Scheme proposed in the Union Budget 2025 for the non-leather footwear sector will help manufacturers, whose competitiveness has been severely curtailed by increasing domestic manufacturing costs and thin margins.”

MSME Sector

Nitesh Mehta, Partner, M&A Tax and Regulatory Services, BDO India

“Significant increase in limits of turnover and investment for classification as MSME would facilitate a lot of companies to get classified as MSMEs and thereby become eligible for MSME benefits, including access to credit. This measure, coupled with setting up of a new Fund of Funds, with additional funding to start-ups is likely to fuel further growth for start-ups/early stage companies”

Loans

Manoj Purohit, Partner & Leader, FS Tax, Tax & Regulatory Services, BDO India

“Proposal to extend the interest cap on interest subvention scheme will enhance the base for banking sector and bring in the smaller lot of consumers. The banks will also benefit by expanding the book size of their small loans.”

MSME

Manoj Purohit, Partner & Leader, FS Tax, Tax & Regulatory Services, BDO India

“Government to increase its commitment by Rs.10,000 crore to setup New Fund of Funds (FoF) to encourage startups in AIF. The FoF for startups with commitments for over Rs 9 lakh crore will encourage the new startups to pool capital via the booming AIF sector.”

“Increase in Credit guarantee for MSME startups from Rs.10 crore to Rs.20 crore will promulgate the much need ask from the startup sector in larger chunk of capital infusion. Also, the banking sector will aid to expand their lending capacity to such startup companies.”

EV Sector

Maulik Manakiwala, Partner, Indirect Tax, BDO India

“National Manufacturing Mission to support domestic clean tech manufacturing of EV batteries, solar PV cells, wind turbines, etc. is a step closer to moving from thermal to green energy. This also aligns with Government’s vision of Make in India and sustainable future solutions like green manufacturing and Electric Vehicles (EVs)”

Taxation

Maulik Manakiwala, Partner, Indirect Tax, BDO India

The Government’s increasing focus on travel and tourism is helping boost the overall economy. Performance Linked Incentives for states will help improve the overall hospitality network and increase focus on medical, spiritual and historic tourism. Such measures will help in increasing the indirect tax collections and forex reserves. 

Global Capability Centres

Karthik Mani, Partner, Indirect Tax, BDO India

National framework would be issued for setting up Global Capability Centres (GCCs), which the state governments shall adopt and implement in Tier 2 cities to help in the employment and growth of GCCs in India.

Rationalization of customs tariff structure proposed in the Union Budget to address inverted duty structure to help give fillip to domestic manufacturing and exports.

Custom Duty

Gyanendra Tripathi, Partner & Leader (West), Indirect Tax, BDO India

‘Trust first, scrutinize next’, simplified cargo clearance and customs processes proposed in the Union Budget will help increase India’s export competitiveness.

Rahul Dutia, Partner, Indirect Tax, BDO India

“Export promotion mission focusing on sectors by inter-ministerial co-ordination and providing a unified platform for trade documentation, as well as financial solutions aligned with international practices would act as booster for the export target of the country.”

National Centre for Skilling

Rajitha Boorugu, Partner, Indirect Tax, BDO India

National Centre for Skilling with international collaboration is a much-needed reform to bridge the gap between skills currently possessed by the workforce and skills needed in advanced manufacturing technologies, leading to the furtherance of the ‘Make in India’ initiative and increase India’s share in manufacturing of value-added products.

Santhosh Sivaraj, Partner, Global Employer Services, Tax & Regulatory Services

Budget announcements sound exciting - Simplification of litigation for Aam tax payers – Trust First Scrutinise Later

Prashant Bhojwani, Partner, Corporate Tax, Tax & Regulatory Services

Framework of bilateral investment treaties to be modified to encourage higher foreign investments

FDI in the insurance sector

MANOJ PUROHIT, Partner, FS Tax, Tax and Regulatory Services, BDO India

“The much-awaited reform in the insurance sector has been announced by the Hon’ble FM of extending 100% FDI in the insurance sector. It is a welcome step for opening the insurance sector for foreign players and addressing the stress over solvency of insurance companies. This move will ensure penetration of insurance, thereby paving the path for insurance for all by 2047.”

NCLT Meger

Anish Shah, Partner, M&A Tax and Regulatory Services, BDO India

Relaxation in fast-track merger provisions will help entities to opt for fast-track route which will reduce the timelines and compliance required as compared to NCLT route of merger.

DTC

Mihir Gandhi, Partner, Corporate Tax, Tax & Regulatory Services, BDO India

The Hon’ble Finance Minister, in the Union Budget 2025, has announced that DTC will be released next week. This is a much-awaited reform and should lead to simplification of the existing tax law which is more than 60 years old and has become complex.

Prashant Bhojwani, Partner, Corporate Tax, Tax & Regulatory Services, BDO India

Scope of fast-track mergers to be expanded to reduce timeline for consolidations

E-VISA

Deepashree, Partner, Global Employer Services, Tax & Regulatory Services, BDO India

To boost destination-based and medical tourism in India, streamlining of e-visa scheme and e-visa fee waiver are proposed. This would ease visa norms, promote sustainable travel to India and measures to enhance visa consular services.

Custom Duty

Deepthi Alexander, Partner, Indirect Tax, BDO India

Reduction in customs duty slab rates would lead to reduction in classification related disputes and increase ease of doing business for importers.

Removal of Social Welfare Surcharge on imported goods is expected to reduce cost of import and encourage domestic manufacturing across sectors. 

Tax Code & Transfer Pricing 

Munjal Almoula, Head of Tax, BDO India

The new tax code will be drafted with a view of removing uncertainties. It is expected to be simpler, crisper and articulated in simple language to avoid ambiguity and interpretation issues. The intent is to avoid needless litigation and provide greater certainty to taxpayers.

“Transfer pricing compliances to be reduced significantly by allowing taxpayers having international transactions to determine the ALP for the international transactions over a block period covering 3 years. This will reduce compliance burdens for taxpayers and ease documentation maintenance.”

Swati Agarwal, Partner, Indirect Tax, BDO India

The ability to declare material facts related to imported goods, if missed at the time of import, with the option to pay duty along with interest and without any levy of penalty voluntarily where tax authorities have not identified them, would reduce litigations and promote ease of doing business.

Nitesh Mehta, Partner, M&A Tax & Regulatory Services, BDO India

“The motto of ‘Trust first and Scrutinise later’ coupled with the announcement of measures for light touch regulatory framework including further decriminalisation of provisions, shows the Government’s continued efforts to improve the ease of doing business.”

Lalit Attal, Partner, Tax & Regulatory Services, BDO India

The tax proposal to conduct transfer pricing audit for a block of three years is a welcome move that has been long overdue. A wider guidance around complex data gathering, inconsistent documentation across jurisdictions, managing fluctuating market conditions, potential for double taxation, disputes over intangible asset valuation, and navigating different tax authority interpretations of the arm’s length principle would pave the way for tax certainly and enhance ease of doing business in India.

NEW DELHI, 31 January 2025: Commenting on the Economic Survey 2024-25 tabled in the Parliament earlier today, Mr Harsha Vardhan Agarwal, President, FICCI said, “It is heartening to note the emphasis the Economic Survey has placed on ‘deregulation’ and furthering the agenda of ease of doing business in the country. The survey has highlighted that allowing businesses to focus on their core mission is a significant contribution that governments around the country can make to foster innovation and enhance competitiveness. FICCI has been of the view that by simplifying regulations and doing away with old regulations, the cost of doing business in the country can be reduced significantly and this will promote investments and overall growth.” 

“Further, we would like to mention that regulatory reforms require active participation of the state governments and their role in improving the business climate in the country is becoming increasingly important,” Mr Agarwal added. 

The survey has also highlighted the need to improve the manufacturing sector competitiveness. This is extremely important, and FICCI has suggested scaling-up R&D and innovation spend in the country. Additionally, there is a need to create a robust eco-system for domestic manufacturing by laying a thrust on Production Linked Incentives for critical sectors. The Economic Survey has highlighted FICCI’s report on how PLI schemes have led to development of complete value chain.

Commenting on the GDP growth outlook Mr Agarwal said, “while the growth assessment is slightly lower than FICCI’s own assessment, we expect that the Union Budget tomorrow will provide impetus for both consumption and investment demand. We look forward to rationalization of the tax structure in the budget with a view to putting more money in the hands of consumers for greater discretionary spend.” 

Addressing the issue of food inflation is equally important. FICCI concurs with the suggestions made in the Economic Survey for developing climate-resilient crop varieties and enhancing agriculture yield, as well as implementing robust data collection and analysis systems for integrated monitoring of agriculture ecosystem. This is in line with FICCI’s suggestion to have a Food Inflation Response and Strategy Team (FIRST) mechanism for creating an e-enabled, empowered co-ordination framework along with a global market intelligence mechanism that can aid in better forecasts and planning.

The Economic Survey has focused on balancing energy transition while maintaining energy security. FICCI agrees with the Survey’s analysis and recommendation to reduce import dependence for critical items from a single source. Building the domestic ecosystem for industries such as EVs, Solar and Wind Energy are critical from the perspective of meeting our long-term targets for a low carbon growth path.

“The government’s Rs 2-crore term loan scheme for first-time women entrepreneurs is a game-changer, empowering more women to turn their aspirations into thriving businesses. Access to capital has long been a barrier, and this initiative will provide the much-needed financial push to foster innovation, self-reliance, and economic inclusion. As a woman entrepreneur, I see this as a strong step towards building a more diverse and resilient business ecosystem in India.

The budget has the right intent - to boost private investment and exports. It’s a cliche but the devil will be in the details and the implementation. Where the details are known - like rationalisation of customs duty and extension of safe harbour rules for electronics manufacturing - they are directionally correct

A budget is often like an iceberg. What we end up focusing on mainly is tax proposal which is just 10-15% of the story. However, what could be truly game changer is hidden beneath. In this budget announcements around exports mission as well as a deregulation task force are very interesting. If the deregulation task force does manage to push through some radical reforms in its one year time frame, we could finally unleash investments and exports that we badly need for growth and jobs.

“The government’s commitment to startups through enhanced credit guarantees and the new ₹10,000 crore Fund of Funds is a game-changer. Access to capital has always been a key challenge, and these initiatives will provide the much-needed boost for early-stage and growth-stage startups. The focus on supporting first-time entrepreneurs will further drive innovation and expansion in the ecosystem. This is a strong step towards making India a global startup powerhouse.”

“The Union Budget takes a significant step towards India’s energy transition by prioritizing nuclear energy expansion. The proposed 100 GW nuclear target by 2047, along with reforms to the Atomic Energy Act and Civil Liability for Nuclear Damage Act, signals a progressive shift. Encouraging private sector participation, incentivizing power sector reforms, and investing ₹20,000 crore in small modular reactors will enhance energy security and sustainability.”

Following the Finance Minister’s announcement regarding the expansion of the Small Industries Development Bank of India (SIDBI) Fund of Funds for Startups (FFS) with an additional ₹10,000 crore corpus, we wanted to highlight an insightful perspective from Vishesh Speciale 

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India stands at a defining moment in history, where its unparalleled talent, indomitable entrepreneurial spirit, and a robust policy framework converge with unprecedented technological progress. In a world grappling with rising geopolitical tensions, the call for self-reliance and indigenous innovation has never been louder. At Speciale Invest, we firmly believe this is India’s time to rise, unite its strengths, and lead the charge in building transformative technologies across space, defense, computational power, health, bio-manufacturing, energy, and beyond—securing our nation’s future and asserting our global leadership.

A visionary Deeptech Fund of Funds to fuel cutting-edge innovations, combined with 10,000 fellowships under the PM Research Fellowship Scheme, will ignite a new era of technological sovereignty. These initiatives will not only empower India to develop revolutionary solutions for the world but also reaffirm our commitment to becoming a self-reliant, innovation-driven superpower. This is our moment to dream boldly, act decisively, and shape a future where India stands tall as a beacon of progress and resilience.

The new personal tax slabs is positive from an individual perspective but the lower capex spending and fiscal deficit at 4.6% for FY26 seems to neutralise the positive aspect in the short term. We continue to remain positive on consumer , automobiles and private banks from current levels.

While the budget has provided tax relief in range of ₹70k to ₹1.1 lac across different tax slabs for individual taxpayers, which is big positive for consumer facing businesses, a slight disappointment for markets is that against the announced figure of nearly ₹11.11 lac crore of capex/infra spend in July 2024 budget, the revised estimate is ₹10.18 lac crore. The FY26 capex budget of only ₹11.2 lac crore is lower than market expectations of above ₹13-14 lac crore. Tax Collection At Source (TCS) on LRS remittances upto ₹10 lacs is exempted which is a good move for investors to invest in global funds. This limit was ₹ 7 lac earlier.

With strategic investments in education, skilling, and inclusion, The Union Budget 2025-26 lays the foundation for a future-ready workforce and an inclusive growth story, aligning with the vision of Amrit Kaal. The announcement of a Deeptech Fund of Funds and the provision of 10,000 fellowships for tech research at IITs and IISc under the PM Research Fellowship Scheme mark a transformative step toward fostering innovation and technological self-reliance.

To maximize the impact of these initiatives, it is imperative to integrate industry internships into the fellowship framework, akin to a PMIS (Prime Minister’s Internship Scheme) for highly skilled professionals. This will ensure that education and skills remain industry-relevant and aligned with the demands of a fast-paced, disruptive tech world. Engaging the top 20 Indian tech companies to co-create flexible, agile, and responsive training modules will further enhance the program’s effectiveness. Incentivizing these companies to onboard interns and partnering with global tech giants to offer international internship opportunities will provide fellows with exposure to cutting-edge technologies and global best practices.

Moreover, this model should be replicated and scaled to extend deeptech training to deserving youth across the country, particularly in tier 2 and 3 cities. By democratizing access to world-class training modules, we can unlock the potential of talent from underserved regions, engendering inclusivity and innovation. This approach will not only bridge the skill gap but also position India as a global leader in deeptech advancements.

With a forward-thinking approach, the 2025-26 Budget ensures that India’s youth are equipped with the skills, resources, and opportunities to thrive in a competitive global economy. This is not just a financial roadmap but a vision for creating a resilient, empowered, and future-ready India

“The Union Budget 2025 introduces commendable measures to strengthen India’s healthcare system, particularly in cancer care and affordability of life-saving treatments. The plan to set up daycare cancer centers in district hospitals and 200 dedicated cancer hospitals by 2026 will decentralize care, reducing the burden on metropolitan hospitals and making critical treatments more accessible. However, ensuring these centers are well-equipped with skilled professionals and advanced technology will be key to their success.”

“The exemption of basic customs duty on 36 life-saving drugs and concessional rates on six more is a crucial step in reducing treatment costs for patients battling cancer, rare diseases, and chronic illnesses. Additionally, waiving customs duty on medicines provided through patient assistance programs is a progressive move, expanding access to essential drugs for those in financial distress. With 37 new medicines and 13 more patient assistance programs added, this initiative will significantly benefit underprivileged patients. However, it is vital to ensure transparency and efficiency in the implementation of these programs so that the support reaches those who need it most.”

“The government’s focus on medical tourism and ‘heal in India’ initiative, with relaxed visa norms and private sector collaboration, will strengthen India’s position as a global healthcare destination. To capitalize on this, investment in infrastructure, quality care, and seamless patient experiences must be prioritized, ensuring India remains competitive in the international healthcare market.”

The Union Budget of 2025 certainly shows a great focus on steps to develop education technology in India. The move to ensure broadband connectivity is done to all government run secondary schools needs no emphasis as it will help close the digital gap and allow smooth access of information to students. Visionary steps like establishment of five National Centres Of Excellence for youth will ensure focused skill development and world ready education. Train the Trainers, Skill Training of the youth will ensure more employability. Introduction of Digital Language book “ Bhasa Pustak” will help promotion of all regional language. 

It is encouraging to note that IIT enrollment has increased from 65000 to 135000 in the last couple of years and even further development of infrastructure by the government is a positive signal towards world class STEM education. Also, the latest announcement on establishment of a Centre of Excellence in AI for Education will make great positive changes in innovation, research and business collaboration, ensuring that India is able to keep pace with the rest of the world in new age technologies. Expansion of medical education in adding 10k seats next year and 70k seats in next 5 years will add strength to healthcare sectors.

“India National Critical Mineral Mission: With an investment support of ₹163 bn, this is going to change the game for the electronics and EMS industry by sourcing critical resources for EV and High-Tech manufacturing. Now, 25 critical minerals, such as lithium and cobalt, will be exempted fully from customs duty. This policy not only reduces dependency on imports but also boosts domestic production. This will also establish mineral processing parks and research hubs, generating thousands of jobs to make India a global leader in electronics manufacturing and clean energy solutions.”

”The Union Budget 2025 marks a decisive step in strengthening India’s logistics sector with a sharp focus on infrastructure, digital transformation, and job creation. Investments in air cargo warehousing, streamlined customs protocols, and multimodal transport networks will drive efficiency and global competitiveness.”. With an allocation of ₹2 lakh crore for job creation, coupled with a predicted 6.4% GDP growth, India is certainly bound to become a global logistics giant. The future will most probably be that of sustainability and automation, ensuring that India’s supply chains would be cost-effective and resilient while remaining technologically advanced.”

“The government’s announcement to allow 100% Foreign Direct Investment (FDI) in the insurance sector will help facilitate entry of more players into the Indian market, thereby ushering in a new wave of competition, innovation and growth. This influx will drive Indian insurers to adopt global best practices in product and processes, innovation as well as cutting-edge technologies. All of these can further help improve underwriting, claims management and customer service.

In a capital-intensive market like insurance, the proposal will help inject substantial capital into the sector, enabling insurers to expand their operations, enhance their product offerings, and strengthen financial reserves. It can also impact improved margins for Indian insurers, listing of insurance companies and newer tax rules. We appreciate and welcome this initiative by the government.”

With strategic investments in education, skilling, and inclusion, The Union Budget 2025-26 lays the foundation for a future-ready workforce and an inclusive growth story, aligning with the vision of Amrit Kaal. The announcement of a Deeptech Fund of Funds and the provision of 10,000 fellowships for tech research at IITs and IISc under the PM Research Fellowship Scheme mark a transformative step toward fostering innovation and technological self-reliance.

To maximize the impact of these initiatives, it is imperative to integrate industry internships into the fellowship framework, akin to a PMIS (Prime Minister’s Internship Scheme) for highly skilled professionals. This will ensure that education and skills remain industry-relevant and aligned with the demands of a fast-paced, disruptive tech world. Engaging the top 20 Indian tech companies to co-create flexible, agile, and responsive training modules will further enhance the program’s effectiveness. Incentivizing these companies to onboard interns and partnering with global tech giants to offer international internship opportunities will provide fellows with exposure to cutting-edge technologies and global best practices.

Moreover, this model should be replicated and scaled to extend deeptech training to deserving youth across the country, particularly in tier 2 and 3 cities. By democratizing access to world-class training modules, we can unlock the potential of talent from underserved regions, engendering inclusivity and innovation. This approach will not only bridge the skill gap but also position India as a global leader in deeptech advancements.

With a forward-thinking approach, the 2025-26 Budget ensures that India’s youth are equipped with the skills, resources, and opportunities to thrive in a competitive global economy. This is not just a financial roadmap but a vision for creating a resilient, empowered, and future-ready India

Going by the spirit of democracy demography and demand the tax rationalisation has been seen. As per the expectations of the public there is significant relief to the tax payers. Up to 12 lakh income there is no tax, given capital gains income is not included. This is expected to give boost to the sluggish demand seen in the previous year. This is quite a comprehensive budget that has touched all the critical areas that needed attention. Energy, mobility, skill building, tourism, health, exports, MSMe, and fiscal stability each area has been given ample attention. Shipbuilding and maritime industry need to be propped up to restrict the threats of Chinese dominance. The budget has given adequate concern and push. Deep tech fund, National Geospatial Mission will further provide power to the Gatishakti endeavor thus reducing the logistics costs on one hand and improving the availability of data to set up a new industry. Rationalization of Basic Customs Duty will help the exports grow on one hand and provide availability of critical raw materials and components for the growth of the electronics industry, electric vehicles, mobile phones, and renewable energy.

This is most definitely a game-changer for the middle class. A higher tax-free slab means more money in the hands of salaried professionals, whether it is for investments, home loans, children’s current and future education, or even that long-delayed vacation. This isn’t just about tax relief; it’s about financial freedom and a better quality of life.

On tax

For years, middle-class employees have been squeezed between rising expenses and stiff tax slabs. This shift definitely puts them in control allowing for higher savings, better financial planning, and greater investment in assets such as housing and retirement funds. More disposable income ultimately leads to higher consumption, which in turn drives economic growth. It’s a win-win. 

Curiosity and innovation for has always needed a playground, and 50,000 Atal Tinkering Labs will provide just that. This is how we nurture the next generation of inventors and problem-solvers. Broadband in every government school is equally critical. Without access, a digital first approach to learning remains just a promise. Today’s investments in education will determine India’s global standing in the coming decades.

”The 2025 budget maintained its emphasis on the “Make in India, Make for the World” initiative. Various schemes aimed at enhancing infrastructure and business friendly policies are expected to strengthen India’s position as a global hub for industries such as toys and leather. Measures to support shipbuilding, including financial assistance and duty rationalization, will further drive growth in this sector. Additionally, adjustments to customs duties, particularly in emerging and sustainable industries like electric vehicles and electronics, are set to foster expansion and development in these areas”

“The Dhan Dhanya Krishi Yojana which aims to cover 100 low agro-productive districts was announced by the Finance Minister during her opening remarks. We believe that the initiative is a noble proactive step to create an economic opportunity in the rural areas as pointed out by her to ensure that migration becomes an option rather than a compulsion. The success of the scheme will be achieved when sustainable agricultural practices are enhanced, with organic farming taking center stage.Strengthening on FPO and cooperatives by setting up central boards with help of states shall ensure the implementation of scheme. The government’s commitment to the “agriculture growth” approach is a step towards building a resilient and more prosperous future for all Indians.”

“The Finance Minister’s announcements will give a strong push to India’s tourism, healthcare, and aviation sectors, creating jobs and driving economic growth. Easier visa norms under ‘Heal in India’ will attract more medical tourists, boosting hospitals, hospitality, and foreign exchange earnings. Opening up PM GatiShakti data to private players and developing 22 key destinations in partnership with states will strengthen tourism infrastructure and local economies. The expansion of UDAAN to 120 new destinations and new greenfield airports in Bihar will improve regional connectivity, making air travel more accessible to the middle class while supporting trade and investment. These steps position India as a key global destination for tourism, healthcare, and aviation-driven growth.

The establishment of five National Centres of Excellence for Skilling marks a transformative step in India’s mission to create a future-ready workforce equipped with industry-aligned skills. These centres will serve as specialized hubs focusing on high-growth sectors such as advanced manufacturing, renewable energy, AI, automation, and aerospace, ensuring that Indian youth gain practical, job-oriented training that meets both domestic and global industry demands. By integrating cutting-edge vocational education, apprenticeships, and certification programs, these centres will bridge the critical skill gap, helping graduates transition seamlessly into employment. Moreover, through global skilling partnerships, India is not only strengthening its workforce domestically but also positioning itself as a key supplier of skilled professionals for the world, reinforcing the vision of ‘From India to the World’. This initiative will play a pivotal role in making India a global hub for skilled talent, boosting employability, and accelerating economic growth.

As a woman entrepreneur, today’s announcement is incredibly meaningful—not just for me, but for the entire women entrepreneurship community. The ₹10,000 crore ‘Women Entrepreneurship Fund’ is a game-changer for women-led businesses like Pinq Polka, offering not just much-needed capital but also mentorship and guidance, which are often hard to come by.

The ₹100 million credit guarantee for SMEs is another great supportive step, making financing more accessible for women entrepreneurs who have historically faced challenges in securing financial support for business growth.

On a personal level, the extension of the Mahila Samman Savings Scheme is a huge relief. It’s a powerful initiative that enables women to save and plan for a secure future, and I’m thrilled that more women will now have access to it.

The government’s commitment to supporting women-led businesses and fostering financial independence is exactly what’s needed to drive true empowerment. I’m excited to see how these initiatives will help women entrepreneurs thrive and scale their businesses.

“The Union Budget 2025 introduces commendable measures to strengthen India’s healthcare system, particularly in cancer care and affordability of life-saving treatments. The plan to set up daycare cancer centers in district hospitals and 200 dedicated cancer hospitals by 2026 will decentralize care, reducing the burden on metropolitan hospitals and making critical treatments more accessible. However, ensuring these centers are well-equipped with skilled professionals and advanced technology will be key to their success.”

“The exemption of basic customs duty on 36 life-saving drugs and concessional rates on six more is a crucial step in reducing treatment costs for patients battling cancer, rare diseases, and chronic illnesses. Additionally, waiving customs duty on medicines provided through patient assistance programs is a progressive move, expanding access to essential drugs for those in financial distress. With 37 new medicines and 13 more patient assistance programs added, this initiative will significantly benefit underprivileged patients. However, it is vital to ensure transparency and efficiency in the implementation of these programs so that the support reaches those who need it most.”

“The government’s focus on medical tourism and ‘heal in India’ initiative, with relaxed visa norms and private sector collaboration, will strengthen India’s position as a global healthcare destination. To capitalize on this, investment in infrastructure, quality care, and seamless patient experiences must be prioritized, ensuring India remains competitive in the international healthcare market.”

The Union Budget of 2025 certainly shows a great focus on steps to develop education technology in India. The move to ensure broadband connectivity is done to all government run secondary schools needs no emphasis as it will help close the digital gap and allow smooth access of information to students. Visionary steps like establishment of five National Centres Of Excellence for youth will ensure focused skill development and world ready education. Train the Trainers, Skill Training of the youth will ensure more employability. Introduction of Digital Language book “ Bhasa Pustak” will help promotion of all regional language. 

It is encouraging to note that IIT enrollment has increased from 65000 to 135000 in the last couple of years and even further development of infrastructure by the government is a positive signal towards world class STEM education. Also, the latest announcement on establishment of a Centre of Excellence in AI for Education will make great positive changes in innovation, research and business collaboration, ensuring that India is able to keep pace with the rest of the world in new age technologies. Expansion of medical education in adding 10k seats next year and 70k seats in next 5 years will add strength to healthcare sectors.

”The Union Budget 2025 marks a decisive step in strengthening India’s logistics sector with a sharp focus on infrastructure, digital transformation, and job creation. Investments in air cargo warehousing, streamlined customs protocols, and multimodal transport networks will drive efficiency and global competitiveness.”. With an allocation of ₹2 lakh crore for job creation, coupled with a predicted 6.4% GDP growth, India is certainly bound to become a global logistics giant. The future will most probably be that of sustainability and automation, ensuring that India’s supply chains would be cost-effective and resilient while remaining technologically advanced.”

This would help the wider tourism ecosystem as well as the healthcare sector. India ranks third in terms of cost and fourth in terms of facilities and services. Its waiting time for key medical procedures is also significantly lower compared with 120-250 days in the developed nations.

With an investment support of ₹163 bn, this is going to change the game for the electronics and EMS industry by sourcing critical resources for EV and High-Tech manufacturing. Now, 25 critical minerals, such as lithium and cobalt, will be exempted fully from customs duty. This policy not only reduces dependency on imports but also boosts domestic production. This will also establish mineral processing parks and research hubs, generating thousands of jobs to make India a global leader in electronics manufacturing and clean energy solutions.”

“Bolstering India’s domestic electronic equipment industry will create millions of jobs and strengthen formal employment, with projections of 12 million new roles by 2027. Initiatives like the PLI Scheme and local manufacturing of critical components will drive this expansion. To fully harness this opportunity, India must invest in skill development, strengthening apprenticeship programs, and fostering industry-academia collaboration. By equipping youth with industry-ready skills, India can bridge the talent gap and position itself as a global leader in electronics manufacturing.”

“The government’s announcement to allow 100% Foreign Direct Investment (FDI) in the insurance sector will help facilitate entry of more players into the Indian market, thereby ushering in a new wave of competition, innovation and growth. This influx will drive Indian insurers to adopt global best practices in product and processes, innovation as well as cutting-edge technologies. All of these can further help improve underwriting, claims management and customer service.

In a capital-intensive market like insurance, the proposal will help inject substantial capital into the sector, enabling insurers to expand their operations, enhance their product offerings, and strengthen financial reserves. It can also impact improved margins for Indian insurers, listing of insurance companies and newer tax rules. We appreciate and welcome this initiative by the government.”

“The announcement of a National framework to promote growth of GCCs in Tier-2 cities will transform India’s economic landscape, thereby creating a balanced economic development across States. As GCCs are projected to generate millions of jobs, this framework will facilitate the growth of formal employment opportunities for the youth , capitalize on talent availability in our Tier 2 & 3 cities, upgrade infrastructure and make these cities more attractive for global businesses. By investing in skill development, improving urban infrastructure, and simplifying regulations, India is creating the right environment for GCCs to thrive. This move strengthens India’s position as a global hub for digital services while ensuring balanced and inclusive economic growth.”