New Delhi, NFAPost: Indian business honchos lauded Nirmala Sitharaman for presenting the Union Budget 2025 for a nation which is focussing on innovation and knowledge-centric economy with a slew of reforms across agriculture, MSME, export centricity, education and healthcare and balancing skills and AI.
The Finance Minister presented the budget in the Parliament and stated that there would be no reduction in public spending on capital expenditure. The budget speech had two amendments announcement – to the Atomic Energy Act and to Civil Liability for Nuclear Damage Act – aimed at achieving energy security.
“The Union Budget reaffirms India as an innovation and knowledge centric economy with a slew of reforms across agriculture, MSME, export centricity, education and healthcare and balancing skills and AI. The rationalisation of personal tax reforms could unleash a potential consumption boom of at least Rs 3.3 trillion spend over baseline. The fiscal numbers are conservative. The budget has several bold initiatives for Agri sector aimed at boosting farmers income through crop diversification, participation in Agri value chains and focus on allied activities. The MSME sector will benefit from expanded credit availability through credit guarantees, empowering women entrepreneurs and credit cards for micro enterprises. The enhancement of TCS limit on remittances, the enhancement of TDS limits for senior citizens will significantly simplify ease of doing business. Overall, the Budget is a significant step towards making India a global hub for innovation and advanced manufacturing,”
says SBI Chairman C S Setty
“The new tax slabs put more money in the hands of the middle class, boosting both disposable income and consumption, further strengthening the economy. Add to that the government’s push for higher agricultural productivity and stronger MSMEs, and we have the perfect recipe for accelerated economic growth.”
TVS Motor Company MD Sudarshan Venu
“This is a landmark shift that the government has taken recently by proposing the increase in the FDI limit of Indian insurance companies to 100% from 74% which will open up the capital inflow, bring in innovations, and grow healthy competition. The increase in foreign participation will help fill the protection gap, ensuring that more citizens and insurable assets are covered, as IRDAI has envisioned “Insurance for All” by 2047. This will not only make the financial system more resilient but also fuel the growth of insurtech startups, making the insurance landscape more dynamic and consumer-centric. More global players will translate into better choices for consumers, improved product offerings, and a more robust sector overall. The future of insurance in India is poised for unprecedented expansion—driven by capital, competition, and customer focus.”
Choice Insurance Broking Director Sumit Bajaj
“The Finance Minister has presented a clear, growth-driven budget that aligns with the Prime Minister’s vision of fostering a competitive and resilient India with inclusive growth by investing in people, economy and innovation. The budget prioritizes extensive national infrastructure development and accelerates the digitization of the economy. Continuous government investments in infrastructure are set to fuel sustained economic growth. Additionally, the government’s strong commitment to green mobility is expected to create new avenues for innovation and growth across the country. The launch of the National Manufacturing Mission will support the sector by providing crucial policy backing, execution plans, and a governance and monitoring framework. With strategic investments in skilling, digitization, healthcare, education, agriculture, and electrification, the budget aims to shape India’s economic trajectory in the years ahead. Furthermore, it reinforces our commitment to clean energy vehicles, contributing to a greener, cleaner future as part of the national mission to achieve net-zero carbon emissions.”
Ashok Leyland Chairman Dheeraj Hinduja
“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 Wealth Company Managing Director Madhu Lunawat
“The Union Budget 2025-26 is a strong and progressive one for the real estate sector, driving economic growth and urban transformation. The rationalisation of income tax slabs, raising the exemption limit to ₹12 lakh, revision of tax structure up to Rs. 24 lakhs, and increasing rental TDS thresholds will boost disposable income. The tax exemption on notional rent for a second self-occupied home is a significant relief, encouraging investment in real estate. Coupled with a higher standard deduction, these measures will drive housing demand, particularly in the affordable and mid-segment categories.
We welcome the ₹1 lakh crore Urban Challenge Fund, which will spur housing and private sector participation. The ₹15,000 crore SWAMIH Fund-2 will help complete 40,000 stalled units, boosting consumer confidence. Expanding UDAN’s connectivity to 120 destinations will drive Tier-2 market growth. With policy continuity and economic expansion, this budget reinforces real estate as a key pillar of India’s $5 trillion economy journey,”
Puravankara Limited Managing Director Ashish Puravankara
“The Union Budget 2025 reinforces the government’s commitment to making GIFT City IFSC a global financial hub. The proposed tax incentives and regulatory simplifications will attract global investors, fund managers, and businesses, strengthening India’s financial ecosystem. With these measures, GIFT City is set to become a competitive and business-friendly destination on the global financial map. It will play a key role in driving India’s growth in the international financial services sector.”
GIFT City MD and Group CEO Tapan Ray
“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.”
Piramal Group Chief Economist Debopam Chaudhuri
“The budget takes a bold, strategic approach to economic growth, balancing fiscal incentives, credit expansion and sustainability to drive long-term resilience and global competitiveness. It boosts disposable income through reduced personal income tax and higher TDS limits for senior citizens and rent, stimulating consumption and economic momentum. Targeted credit expansion for farmers and MSMEs will inject vital liquidity, accelerating sectoral growth, while the transition to cashflow-based lending reinforces financial stability. The Bharat Trade Net and NABFID credit enhancements will sharpen India’s export competitiveness amid global headwinds. Moreover, a strong push for workforce participation, particularly for women, and a firm commitment to green initiatives will drive sustainable, inclusive development. I expect these measures to collectively lay the foundation for long-term economic resilience and nation-wide growth.”
BCT Digital CEO Jaya Vaidhyanathan
“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.”
Tata Motors Executive Director Girish Wagh
“The Union Budget 2025-26 shows strong support for India’s ports, shipping, and logistics sectors. Extending customs duty exemptions on shipbuilding materials for 10 more years and offering tax benefits to inland vessels will boost local shipbuilding and promote inland water transport. The ₹25,000 crore Maritime Development Fund is a big step towards providing long-term financial support, fostering healthy competition, and encouraging sustainable growth in the maritime industry. This budget is a commendable step towards strengthening India’s position in global trade and logistics.
The government’s focus on boosting exports through measures like the Export Promotion Mission, simplification of customs procedures, and extended export timelines for handicrafts and leather sectors will significantly enhance India’s trade footprint. These steps, coupled with rationalized customs tariffs and reduced duties, will drive both export growth and domestic consumption. Transforming India Post into a large public logistics network with 1.5 lakh rural post offices will improve last-mile delivery and connect rural businesses to broader markets. Providing private companies access to PM Gati Shakti data will simplify project planning and strengthen public-private partnerships. This budget lays a strong, forward-looking foundation for growth in the maritime and logistics sectors.”
APM Terminals Pipavav Managing Director Girish Aggarwal
“Toyota Kirloskar Motor commends the Union Budget 2025-26 for its focus on reforms, infrastructure development, reinforcing fiscal discipline, rationalising taxation, and fostering domestic manufacturing – all aimed at driving holistic development. The increased allocation for capital expenditure demonstrates the government’s persistent commitment towards infrastructure modernisation, a crucial factor in accelerating growth across industries and improving their competitiveness including automotive sector. Lowering of taxation through Income Tax measures and the PM Dhan Dhanya Krishi Yojana for the farming community will significantly benefit the common man, enhance consumption and create demand leading to faster economic growth.
Continued and strong support to MSMEs, with special focus on labour-intensive sectors and first-time entrepreneurs will spur innovation and growth, aligning well with India’s ambition of becoming a manufacturing major. Further, the inclusion of 35 additional capital goods for EV battery manufacturing is an important step towards localiwing lithium-ion battery production which will help in lowering import dependency, and further strengthening India’s energy security goals. This will not only accelerate clean technology adoption but also create a robust supply chain supporting India’s Carbon Neutrality goals for 2070. At Toyota Kirloskar Motor, we stand firmly with the government’s vision of a self-reliant, sustainable, and globally competitive automotive industry. Our unwavering commitment to advancing clean energy technologies, deepening investments in local manufacturing, skilling and contributing to India’s ‘Viksit Bharat’ vision reflects our dedication to driving economic growth while upholding environmental responsibility.”
