Bengaluru, NFAPost: Bangalore Chamber of Industry and Commerce (BCIC) welcomed several announcements in the Union Budget 2025 which was presented in the Parliament by Union Finance Minister Nirmala Sitharaman.
In a satement issued after the Union Budget 2025, BCIC stated that the reduction in tax rates and the increase in the tax threshold for the middle class will promote consumption.
“The strong focus on MSMEs, including provisions for micro credit cards and increased refinancing limits will promote growth. Additionally, the Fund of Funds for Startups (FFS) scheme, reaffirms the government’s commitment to fostering innovation and entrepreneurship. The support for healthcare units, electric vehicles, and the establishment of a consultative committee for ease of doing business indicates the government’s focus on inclusivity,” states BCIC in a statement.
Vineet Verma, President BCIC: “The Union Budget 2025 has taken welcome steps to reduce the rate of income taxes and by increasing the tax threshold up to ₹12 lakhs. This move will ease the tax burden and increase disposable income, bringing considerable relief to the middle class besides boosting consumption. The middle class is the backbone of our economy, and these measures will provide much-needed relief and encouragement to spend, ultimately driving economic growth. We commend the government for recognizing the importance of stimulating consumption and making it easier for individuals to comply with tax regulations. The rationalization of TDS and TCS will also benefit the industry by simplifying tax processes and reducing administrative burdens. The Budget has also laid strong emphasis on boosting tourism with Udaan regional connectivity, top 50 destination development, airport upgrades, skill development programs, MUDRA loans, incentives for states, and VISA waivers. The Government’s focus on spiritual and medical tourism and the extension of regional connectivity to 220 new destinations will further boost the tourism sector.”
Prashant Gokhale, Sr. Vice President, BCIC: “The strong focus on MSMEs in the Union Budget 2025 is a welcome development, providing clear-cut direction and support for the sector. The introduction of micro credit cards and the increase in refinancing limits will enhance liquidity and help MSMEs thrive. By raising the threshold for the definition of MSMEs, the government has acknowledged the evolving needs of the sector and ensured that more businesses can benefit from these measures. MSMEs are the lifeline of our economy, and these steps will enable them to grow, innovate, and contribute significantly to employment and GDP growth. The budget also includes provisions for healthcare units and electric vehicles, further demonstrating the government’s commitment to holistic development. We are optimistic that these measures will provide the necessary impetus for MSMEs to reach new heights and drive economic progress.”
K Ravi, Vice President, BCIC: “The announcement of a new round of the Fund of Funds for Startups (FFS) scheme with a ₹10,000 crore corpus is a testament to the government’s commitment to fostering innovation and entrepreneurship. Startups play a crucial role in driving technological advancements and creating new job opportunities, and this initiative will provide the necessary funding and support to help them flourish. The Union Budget 2025 recognizes the importance of nurturing a vibrant startup ecosystem and promoting ease of doing business. By setting up a consultative committee for this purpose, the government has taken a proactive approach to address the challenges faced by startups and ensure their sustained growth. We are confident that these measures will encourage more entrepreneurs to take the plunge, leading to a wave of innovation and economic dynamism. We look forward to witnessing the positive impact of these initiatives on the startup landscape.”
K R Sekar, Past President, BCIC: “The Union Budget 2025 has touched on every aspect of the economy signalling the government’s shift from expenditure to boosting consumption. The exemption of customs duties on certain medical equipment and drugs will benefit the healthcare industry, making essential healthcare services more accessible and affordable. Additionally, the focus on electric vehicles, including incentives for manufacturers and consumers, aligns with the government’s commitment to promoting sustainable and eco-friendly transportation. The establishment of a consultative committee for ease of doing business is another commendable step, as it will address the challenges faced by industries and streamline processes. We believe that all these measures will stir up demand leading to production, however, there was no provision in the budget for CapEx and other projects. We hope the government will continue the push on infrastructure and other funding schemes which would help the nation to grow further.”
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