Bengaluru, NFAPost: Industry captains at Bangalore Chamber of Industry and Commerce (BCIC) and Deloitte post-budget analysis were of the opinion that the union budget represents a significant shift in focus from capital expenditure to consumption, aiming to stimulate the economy by putting more money in the hands of individuals, particularly the middle class, through tax benefits.
The unanimous take out was that while there is a long way to go in ease of doing business, the government is on the right path, aiming to simplify the new income tax bill to reduce litigation.
BCIC Past President Deloitte Touche Tohmatsu India LLP Partner K R Sekar said the budget marks a departure from previous years, balancing infrastructure with consumption, supporting businesses, and driving employment.
“It reflects a strategic vision that fosters sustained growth, making it one of the most inclusive and impactful budgets in recent times. Unlike previous budgets that prioritized infrastructure spending, this budget shifts focus to consumption-driven growth while maintaining CapEx momentum. The government continues to invest in infrastructure, but the real push is towards boosting demand and liquidity in the economy,” said BCIC Past President Deloitte Touche Tohmatsu India LLP Partner K R Sekar.
He also said crucial measures such as raising MSME investment and turnover limits, easing credit access, and strengthening rural economic support via India Post’s logistics network will boost demand and liquidity in the economy.
“The Global Capability Centers (GCC) initiative in Tier 2 and 3 cities and the National Geospatial Mission signal a progressive shift towards economic decentralization. On taxation, the ₹12 lakh exemption significantly benefits salaried individuals, injecting liquidity into the economy with a multiplier effect. The extension of startup incentives and a clear roadmap for the IFSC Gift City further position India as a global business hub.” said BCIC Past President Deloitte Touche Tohmatsu India LLP Partner K R Sekar.
Volvo Group India President & Managing Director Kamal Bali said the budget represents a significant shift, focusing on growth and inclusivity.
“The primary challenge for India is to achieve sustained growth at over 8% to lift millions out of poverty and increase per capita income. This growth must be inclusive, touching all sectors of the economy, including MSMEs, agriculture, startups, manufacturing, services, and tourism. The private sector should drive this growth, with the government providing good policy, regulatory directions, and infrastructureCapital formation is crucial for long-term growth. The budget has performed well on these fronts,” said Volvo Group India President & Managing Director Kamal Bali.
He also pointed that manufacturing remains a fundamental issue, with its contribution to GDP stagnating between 13-17% over the past 20-25 years.
“The government has done what it can, but the industry must address the challenges in manufacturing. The National Manufacturing Mission needs to be re-evaluated to understand and overcome these challenges. The budget has no retrospective amendments or surprises, making it a stable and predictable framework for businesses,” said Volvo Group India President & Managing Director Kamal Bali.
But at the same time he pointed out that the focus on growth, inclusivity, and private sector-driven development, along with capital formation, sets a strong foundation for India’s economic future.
“The government has laid the groundwork, but it requires a collective effort to achieve the desired outcomes,” said Volvo Group India President & Managing Director Kamal Bali
3one4 Capital Founding Partner, CFO, and ESG Officer Siddarth Pai said over the past few years, several startups have moved overseas, but many are now returning to India due to favourable conditions.
“With less than 15% of startup funding coming from domestic sources, the budget provides crucial capital support. The Rs 10,000 crore fund of funds therefore acts as a nucleus for attracting private investment. The budget also extends tax benefits for startups until March 31, 2030, providing much-needed clarity for investors. This move is expected to boost the industry and encourage more entrepreneurs to build businesses in India,” said 3one4 Capital Founding Partner, CFO, and ESG Officer Siddarth Pai.
He also said the government’s focus on supporting MSMEs and startups is a positive step towards fostering innovation and economic growth.
“Many entrepreneurs face regulatory challenges that hinder their ability to build businesses. While the budget has given investors clarity, the government should focus on ease of doing business. We also need to focus on a more robust R&D system in India,” said 3one4 Capital Founding Partner, CFO, and ESG Officer Siddarth Pai
Manipal Hospitals Group CFO Sameer Agarwal said the government’s goal of insuring everyone by 2047, with 100% FDI in insurance, is a welcome move.
“This should improve access to health insurance and quality healthcare. The budget also acknowledges the role of private healthcare and aims to boost medical tourism. However, healthcare remains a non-priority sector, and there is a dip in CapEx spending. Infrastructure spending is crucial for attracting foreign companies into India,” said Manipal Hospitals Group CFO Sameer Agarwal.
While the budget’s focus on various sectors, including startups, health, and infrastructure, is promising, Manipal Hospitals Group CFO Sameer Agarwal said the execution and deployment of funds will determine its success.
“The government must drive these initiatives to ensure growth and development across all sectors. Overall, the budget addresses key issues and aims to create a balanced and inclusive economic environment,” said Manipal Hospitals Group CFO Sameer Agarwal.
In his opening statement, BCIC Senior Vice President Prashant Gokhale said that the government has taken courageous decisions to introduce an entrepreneurial budget that has touched on fundamentals with significant vision.
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