Union Finance Minister Nirmala Sitharaman presented the budget for 2024-25 for the eighth time in a row. Industry leaders have reacted to the budget.

Here are some industry reactions to Union Budget 2025:

Lucas Ramos, Senior Director, Travel & Membership – Asia, Pacific & India, RCI

Budget 2025 underscores the Indian government’s commitment to positioning tourism as a key pillar of economic growth, job creation, and global engagement. By developing top destinations in partnership with states, enhancing medical tourism through the ‘Heal in India’ initiative, and introducing visa reforms, India is strengthening its appeal as a world-class travel and healthcare hub. The inclusion of hotels in the harmonized scheme and visa waivers for select foreign tourists further reinforce a comprehensive, future-ready travel ecosystem. With strategic policy alignment and private sector collaboration, this budget paves the way for India to become a more accessible, competitive, and thriving global destination.

Punit Pandey, Founder, AstroSage AI

The government's commitment to deeptech and startups is a transformative step toward making India a global hub for innovation. By fostering AI-driven enterprises and ensuring access to capital, we are creating an ecosystem where cutting-edge technology can thrive and shape the future. By investing in deeptech and startups, the government is fueling India’s transition from a tech consumer to a tech creator. This is a defining moment for AI-driven innovation. The Union Budget 2025 marks a defining moment for AI and deeptech in India. With the Centre of Excellence for AI, we are paving the way for a smarter, AI-driven future in education and innovation.The Union Budget 2025 marks a transformative era for AI and deeptech startups in India. With dedicated funding, tax incentives, and reduced import duties on AI hardware, the government has laid a strong foundation for innovation-driven growth. These initiatives will enable startups to scale faster, invest in cutting-edge R&D, and contribute to India's vision of becoming a global AI powerhouse. As a deeptech entrepreneur, I see this as a decisive step towards making India not just a consumer of AI but a creator of groundbreaking AI technologies.

Churchil Bhatt, Executive Vice President, Investments – Kotak Life Insurance, on the Budget for FY26

Union Budget for FY26 has managed to deliver the goods on multiple counts. Fiscal Consolidation remains on track with the FY26 budget deficit pegged at 4.4% against 4.8% for FY25. Net government borrowing remains in line with bond market expectations at ~11.5 Lac Crs. The government remains committed to fiscal consolidation with the intention to bring down the central government debt to GDP ratio from the current 57% to around 50% by FY2031. With a 10.1% increase in Capital Expenditure, the government has continued to focus on asset building. Middle-class tax payers get a bonanza with income tax exemption for up to INR 12 Lacs of personal income (excluding capital gains etc.). In our view, this should give the required consumption boost to the economy. The insurance sector in particular stands to benefit from an increase in the FDI limit from 74% to 100%.

Amit Goyal, Regional Managing Director, South Asia – Project Management Institute (PMI)

The Union Budget for 2025-26, presented by the Finance Minister, lays a visionary roadmap for India's growth and resilience, embodying the spirit of Atmanirbharta (self-reliance). With a strong emphasis on education and skill development, the budget aims to achieve 100% literacy and enhance the quality of education. Initiatives such as the expansion of the PM Research Fellowship program, and the establishment of three AI Centres of Excellence with an allocation of ₹500 crore. The enhanced allocation to medical education reflects a robust focus on strengthening India’s healthcare infrastructure, addressing both immediate needs and long-term capacity building and also highlights India’s investment in its human capital.

The budget also prioritizes infrastructure development, aviation expansion, and innovation, positioning India as a global hub for large-scale projects. This creates significant demand for skilled project management professionals who will be pivotal in executing these ambitious ventures, especially critical ones like the advancement of foundational geospatial infra and data under the PM Gati Shakti Scheme. Moreover, the emphasis on sustainability, through initiatives like Clean Tech, ensures that India’s growth trajectory aligns with global environmental goals, fostering a greener and more sustainable future. In essence, the 2025-26 budget is a forward-looking blueprint that empowers the youth, strengthens the nation's infrastructure, and champions innovation, laying the groundwork for a prosperous and self-reliant Viksit Bharat.

Saugata Gupta, MD & CEO, Marico Limited

The Union Budget 2025-26 is a bold and forward-looking plan that places the middle class at its core while ensuring inclusive and sustainable growth across all sectors. By prioritizing, agricultural reforms, health & nutrition, education, middle class consumption and economic acceleration, this budget aligns with government’s vision of 'Viksit Bharat' by 2047.

For middle-class families, strategic focus on targeted tax relief and enhanced social security measures, will uplift household sentiments, boost disposable income and drive consumption. This will provide much-needed financial stability to the masses. Inclusivity is at the heart of Budget 2025, with strategic initiatives to bridge economic disparities and foster equal opportunities for all. Support for women, entrepreneurs, small businesses, and marginalized communities will drive equitable growth, making economic prosperity more accessible.

The continued focus on rural development, with enhanced credit availability for farmers and initiatives like the National Mission for Edible Oilseeds and Aatmanirbharta in Pulses, will drive agricultural productivity and strengthen rural economies. The allocation of ₹1.71 lakh crore to agriculture and allied activities, coupled with initiatives like the National Mission for Edible Oilseeds, Aatmanirbharta in Pulses, and the Prime Minister Dhan-Dhaanya Krishi Yojana, will drive agricultural productivity, stabilize rural economies, and ensure farmers have access to essential resources. In the realm of health and nutrition, the enhancement of cost norms for nutritional support programs like Saksham Anganwadi and Poshan 2.0 is a significant step.

The emphasis on MSMEs, including credit support for micro enterprises, and emphasis on upskilling the youth and reforms in education is a step forward in fostering entrepreneurship and job creation. The focus on accelerated sectoral growth is evident through incentives for manufacturing, technology, infrastructure, and sustainable energy. By investing in digital infrastructure, skill development, and supply chain enhancements, the Budget paves the way for direct and indirect jobs, innovation, and long-term economic resilience.

Overall, Budget 2025 strikes a crucial balance between fiscal responsibility and progressive reforms. This is a budget that fuels aspirations, strengthens the middle class, drives simplicity, and charts a clear path toward a more prosperous and inclusive future.

Yash Kela, Founder, Singularity Ventures

The Union Budget 2025-26 reinforces India's commitment to startups, deeptech, and sustainable innovation. The ₹10,000 crore Fund of Funds for Startups and the proposed Deeptech Fund will provide vital financial backing, while 10,000 research fellowships at IITs and IISc will strengthen the design first , product + service export ecosystem we want to build in the country. The focus on clean tech manufacturing—spanning solar PV cells, EV batteries, electrolyzers, and wind turbines—positions India as a global leader in climate-friendly industrial growth. Additionally, the ₹2 crore funding scheme for first-time women entrepreneurs is a significant step toward fostering inclusive business leadership.At Singularity , we believe these bold initiatives that will accelerate startup growth, drive deeptech breakthroughs, and propel India toward global innovation leadership.

Krishna Rathi, Senior Country Director, India Subcontinent and MEA at Agoda

Agoda acknowledges and celebrates India's exciting potential as a top travel destination and is enthusiastic about the tourism plans announced in this year's Union Budget. The investment in recent years in infrastructure enhancements and destination marketing is undeniably paying off. At Agoda, we see this reflected in a 22% year-on-year increase in inbound accommodation searches to India. With this year's announced investments in the expansion of the UDAN scheme to connect 120 new destinations, enhanced support for homestays, and the development of top tourist destinations in collaboration with state governments, we're hopeful that India will be able to sustain this momentum. Especially as this comes on top of continuing positive trends like visa easements and inspirational destination marketing campaigns promoting India's diverse experiences and attractions.

Mihir V Shah, Executive Director, Vipul Organics Limited. Vipul Organics Limited

It is a fabulous budget with the focus on meeting the aspirations of the booming middle class. The Manufacturing Mission that the Hon’ble minister has set up will further the cause of Make in India and boost domestic manufacturing. Extending the Credit Guarantee Scheme for facilitating term loans for purchase of machinery and equipment without collateral or third party guarantee, to the MSMEs for up to ₹100 crore, is a welcome step and will ease the credit requirements of the sector. Structural reforms that focus on ease of doing business, especially with regards to time limit for Provisional assessments and TCS/TDS compliances are also a welcome step.

Prabhdeep Singh, Founder & CEO, RED.Health

We applaud the Union Budget 2025 for its focus on strengthening India’s healthcare system, particularly the 'Heal in India' initiative. This is an exciting opportunity for India to position itself as a global leader in healthcare, bringing in international patients and driving advancements in medical technology.We are excited about the government's plans to expand medical education with 10,000 new seats in the coming year, rising to 75,000 over the next five years. This will significantly address the shortage of healthcare professionals and strengthen the overall healthcare infrastructure.

Chandrakant Agarwal - President - Thalassemia & Sickle Cell Society

TSCS welcomes Union Budget allocation of ₹98,311 crore for healthcare sector; hopeful for better focus towards blood disorders like Thalassemia.

India’s healthcare sector has long been in need of substantial investment, particularly in the areas of rare diseases and genetic disorders like thalassemia and sickle cell anemia. The Budget’s focus on increasing healthcare funding, especially in the realms of research and public health infrastructure, provides hope for long-term improvements. It is crucial that this funding also reaches specialized areas of care, where we can make a significant impact on the lives of millions who are battling these life-threatening conditions. With continued support, we can work towards more effective treatments, early diagnosis, and a better quality of life for patients across the country.

Avinash G Singh, Head - Investment Research and Analytics, Aranca

This year’s Union Budget takes a balanced approach, with a fiscal deficit estimate of 4.4% for FY26 signaling prudence. However, its true impact will depend on the revival of the public capex cycle and potential income tax reforms. The extension of the asset monetization scheme until 2030 underscores a clear intent to unlock value from public assets, while the INR 1.5 trillion, 50-year funding support for states is a critical step toward ensuring sustained development. A significant highlight is the big boost for salaried taxpayers, with new tax slabs potentially allowing zero tax liability on incomes up to INR 12 lakh after standard deductions. Additionally, the expansion of the UDAAN scheme is a welcome move, strengthening regional air connectivity and fostering economic growth in underserved areas.

Masood Mallick, Managing Director & CEO, Re Sustainability Limited (ReSL).

The budget outlines key initiatives to support sustainability and circularity in India.

The removal of custom duty on waste and scrap from critical minerals, including Antimony, Beryllium, Cobalt, and Lithium-Ion batteries, aims to boost recycling and enhance use of circular minerals in manufacturing. A policy for recovery of critical minerals from tailings or by-products of mining can also emerge as a significant enabler for India's transition to a more circular economy.

Funds have also been allocated to strengthen the domestic manufacturing of clean technologies like solar PV cells, EV batteries, and wind turbines, which will enhance the country's renewable energy infrastructure.

The ₹1 lakh crore Urban Challenge Fund focuses on sustainable urban development, addressing water management, sanitation, and city redevelopment.

Finally, the commitment to developing 100 GW of nuclear energy by 2047 furthers India’s energy transition strategy, contributing to long-term sustainability.

These measures have the potential to significantly accelerate our sustainability and circular economy journey, towards our shared goal of a Viksit Bharat by 2047.

Shekhar Singal, Managing Director, Eastman Auto & Power Ltd.

The Union Budget 2025 significantly advances India's renewable energy sector with the launch of the Clean Tech Mission, focusing on Solar PV, EVs, and Batteries, alongside the National Manufacturing Mission. The announcements underscore the government's dedication to strengthening ‘Make in India’ and becoming Aatmanirbhar in generation as well as storage of clean energy. This approach aims to reduce import reliance and build a robust domestic industry.

From a Solar and Last Mile e-mobility category perspective, the budget with reduction in the BCD for cells and modules prioritizes scaling up of the domestic manufacturing capacities for key components for Solar. The addition of 35 capital goods related to Lithium batteries for EV reduces capital expenditure for setting up manufacturing plants thereby stimulating growth.

These strategic measures set India on a path to achieve its 500 GW renewable energy target by 2030, paving the way for energy independence and a cleaner more sustainable future.

Gaurav Gupta, Founder, MD and CEO, Tyger Capital

A major highlight is the increase in income tax exemption limit, making this a ‘consumption-driven’ budget that aims to boost spending. The Union Budget 2025 continues India’s fiscal consolidation journey with a commendable reduction in the proposed fiscal deficit target of 4.4% for FY26, reinforcing fiscal prudence and economic stability. There remains a continued focus on ‘simplification’ - new tax bill, TDS amendments, tariff rationalization, these measures further enhance ease of doing business.

Additionally, the MSME sector, which is the backbone of India’s economy will see significant benefits. The introduction of customized credit cards for micro-entrepreneurs, an increase in Kisan Credit Card limits, and targeted term loans for women and startup entrepreneurs, coupled with an increased threshold in MSME classification, will provide much-needed capital access and growth opportunities for the sector.

The plan to identify 100 districts with an aim of improving farm productivity through irrigation, technology adoption, crop diversification and enhanced credit access will benefit 1.7 crore farmers and if successful this initiative could be extended to other districts.

Chandrashekhar Sripada, CEO, Clinical Professor (OB), Indian School of Business ( ISB).

The announcement to establish five National Centers of Excellence for skilling is a major highlight of this Union Budget. This is a very welcome move and an important investment for the future of our youth. Execution will be critical. We have to do better than before. While we skill our youth for manufacturing, we must ensure that manufacturing creates enough jobs instead of relying entirely on robots and automation. This initiative sounds very comprehensive since it includes curriculum design, training of trainers, and certification. Appropriate forward linkages with jobs and employment will make this very effective.

Niranjan Nayak, MD, Delta Electronics India

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.

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.

Gautam Singhania, Chairman & Managing Director, Raymond Group

The decision to exempt income tax up to ₹12 lakh is a game-changing reform that boosts India's middle class by increasing disposable income. This is expected to drive household spending—an essential growth engine for sectors like retail and real estate. Higher discretionary spending signals economic vitality, fueling consumption-led growth and strengthening market dynamics. The Union Budget 2025-26 builds on this reform with targeted measures to fortify manufacturing, MSMEs, and domestic consumption. Enhanced credit access, sector-specific incentives for textiles and apparel, and streamlined compliance are set to boost industrial output. With the middle class now driving nearly 60% of domestic consumption, rising purchasing power is likely to accelerate demand for aspirational and premium products. This holistic strategy positions the economy for sustained expansion by creating a strong synergy between consumer spending, industrial growth, and workforce empowerment.

Dr. K.P. Vunnam,Chairman and MD of Ankura Hospital for Women and Children

The significant allocation of ₹98,311 crore for healthcare, reflects the government's commitment to strengthening healthcare infrastructure across the country. The expansion of medical education, increased funding for the AYUSH Ministry, and the provision of tax exemptions on lifesaving drugs will significantly enhance healthcare accessibility. The proposal to establish daycare cancer centres in district hospitals and improve broadband connectivity in rural healthcare centres will further bridge the gap in healthcare services across the nation.Furthermore, the emphasis on medical tourism will position India as a global healthcare hub, attracting international patients and boosting the sector. Additionally, the focus on nutrition through programs like SakshamAnganwadi and Poshan 2.0 will address the nutritional needs of underserved populations, contributing to a healthier future.

Rajiv Kumar,Vice Chairman,DS Group

With the Union Budget 2025-2026, the Government has taken strides towards realizing the Viksit Bharat vision by 2047. The agenda laid out by the FM will address and uplift several economic and social reforms in India. The forgoing of ₹1 lakh crore in direct taxes and 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. It is a balanced budget for corporates as well as individuals and will have a multi-year effect going forward, supporting overall growth and encouraging inclusive development and private investment. Emphasis on digital infrastructure and connectivity enhancement is another key positive. Increasing foreign direct investment (FDI) in the insurance sector from 74% to 100% will boost the sector's growth by stimulating investment across the board.

Vikram Subburaj, CEO, Giottus Crypto Platform

In the Union Budget 2025, Virtual Digital Assets are not discussed directly, there is an encouragement for accelerated economic activity through the promotion of start-ups, industrial development and individual tax benefits. This will have a cascading effect that will most likely benefit new asset classes such as crypto within the investment ecosystem.

The direction towards innovation, MSME support and a stronger digital economy showcase the intention of growing India. Furthermore, the increase in disposable income brought on by tax benefit measures can lead to economic participation in other assets like crypto. For a country with a strong economy, investors will seek broader opportunities, which will lead to greater market confidence.

Even though we remain hopeful that policymakers will still take our suggestions into account regarding the TDS on crypto assets and develop a more flexible regulatory environment, we believe that continuous interaction with policymakers will result in more favorable policies for this emerging market. We are excited to work with everyone on developing India into a leader in Digital Finance and Blockchain.

( Source : Deccan Chronicle )

India

Industry Leaders React to Union Budget 2025

Read some of the industry reactions to Union Budget 2025

Latest News