Budget 2025: Expert Perspectives and Reactions

Mr. Sachin Tayal, Managing Director, Protiviti Member

“The budget gets a lot of proposals right on the mark against the overarching goal of boosting domestic consumption and consumer demand, manufacturing and exports, while keeping the fiscal deficit well in control. The high allocation for capital expenditure particularly in infrastructure is retained and will not only boost the GDP for the next fiscal but also will have a cascading and net positive effect on rest of the industry.

We welcome the expansive digitalization initiatives across taxation, governance, education, healthcare, infrastructure, and international trade as they will make the government more accessible to citizens and businesses alike. The corporate sector has a lot to cheer from the proposed reforms in energy, urban development, and financial sectors, as well as new opportunities for their participation in India’s infrastructure development. The technology services sector is also set to expand with the introduction of a national framework supporting the rapid growth of Global Capability Centres (GCCs) in tier-II cities, emphasizing talent development and infrastructure enhancement.

Finally, the headline proposals including significant reductions in income taxes and the simplification of TDS, TCS, and related tax compliances will no doubt go a long way in uplifting the consumer sentiment and enhancing spending power, arguably the most important requirement for Indian economy at this juncture.”

Dr. Dharminder Nagar, M.D, Paras Health

“We commend the government’s decision to exempt basic customs duty on 36 life-saving drugs, including those for cancer, rare diseases, and chronic conditions. This crucial move will reduce treatment costs and make healthcare more affordable for patients. The government’s emphasis on medical tourism and the ‘Heal in India’ initiative, coupled with streamlined visa norms, will position India as a global healthcare hub. Paras Health is fully aligned with the government’s vision of affordable, accessible, and inclusive healthcare for all, paving the way for a healthier India.”

Mr. Ramadass Selvaraj, Chief Operating Officer at Pathfinder Global

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!

Dr. Jyotsana Singh, Associate Dean, Computer Engineering/ School of Technology Management & Engineering, NMIMS Chandigarh.

The establishment of a ₹500 crore Centre of Excellence in AI for Education is a landmark step towards integrating artificial intelligence into the learning ecosystem. This initiative will revolutionize curriculum development, enable adaptive learning, and foster research-driven pedagogy. AI-powered tools will enhance personalized learning, bridging gaps in accessibility and skill-building across disciplines. With India producing over 1 million STEM graduates annually, this investment ensures our workforce remains globally competitive. The Centre’s interdisciplinary approach will catalyze innovations in digital classrooms, assessment models, and teacher training, fostering a future-ready education system. By embedding AI in education, we are not only enhancing learning outcomes but also preparing students to navigate an AI-driven economy with confidence and competence. This move underscores the government’s commitment to leveraging AI for inclusive and sustainable education.

Please find appended the quote by CA Kunal Pasari, Assistant Professor, School of Commerce, NMIMS Chandigarh
The Union Budget 2025-26 brings significant relief to the middle class, with the new tax regime offering zero tax liability for incomes up to ₹12 lakh, benefiting approximately 1.5 crore taxpayers. The revised tax slabs, with rates ranging from 5% to 30%, are expected to provide an additional ₹80,000 annually to taxpayers earning ₹12 lakh. This measure, combined with the standard deduction of ₹75,000 for salaried individuals, is projected to boost disposable income by ₹1 lakh crore. The proposal to introduce a direct tax code in the current budget session is also a welcome move.

Additionally, the budget aims to simplify compliance by increasing TDS thresholds to ₹1 lakh for senior citizens and ₹6 lakh for rent, reducing the burden on small taxpayers. These reforms, along with the extension of the startup tax holiday to 2030, reflect a progressive approach toward fostering economic growth and improving the ease of doing business.

From the perspective of the education industry, the establishment of ATAL Tinkering Labs and the provision of broadband services to all rural schools will encourage ideation and creativity among students. Furthermore, the allocation of ₹500 crores to the Centre for Excellence in Artificial Intelligence underscores the government’s commitment to AI adoption and innovation.

Dr. Naimitya Sharma, School of Commerce, Narsee Monjee, Chandigarh

“Economic Survey for the current year tabled yesterday had generated expectations of the Union Budget delivering deep economic reforms to take India’s investment rate beyond the current level of 30-31 percent of the GDP for the past few years. To become a developed country by 2047, India needs to grow upwards of 7 to 8 percent continuously for a few decades. To spur Private Investment growth the government in the Union Budget 2025 has placed its bets on invigorating MSME sector and Startup ecosystem. MSME is promised to be supported by a credit guarantee scheme, credit support in times of financial crisis and extension of limit on Mudra loans, along with provision for improving various physical and digital infrastructure supporting MSME production and exports. To promote the start-up ecosystem, Angel tax has been abolished for all classes of investors, Rs 1000 crore has been allocated for start-ups in the space sector. Entrepreneurial energies of youth are being addressed by provision of financial support of 5 lakhs for first time entrepreneurs. Beyond growth concerns, the government in the Union Budget presented today has focused on Agriculture, Skill Development and Inclusive Growth as top three priority areas for delivering the ‘Viksit Bharat’ project. There has been an allocation of 1.52 lakh crore for agriculture and allied sectors. Focus in Agriculture is on HYVs, natural farming, and Digital Public infrastructure. With respect to Skilling, focus is on providing support to employers to incorporate the skills of more and more young people. It is heartening to see that to facilitate higher participation of women in the workforce, there is focus provided on creating working women hostels, creches, women-specific skilling programs and market access to women SHG enterprises. Government has recognized the need to provide support to private higher education institutions as more and more students are expected to pass through private institutions. There is provision made for financial support for loans up to 10 lakhs for higher education in domestic institutions to be provided to youth who have not been eligible for any benefit under government schemes and policies. To further improve the ability of the private higher education sector, the government may choose to extend benefits of the PM Fellowship scheme to these institutions along with making these institutions a strategic beneficiary of Rs 20000 crore allocated to implement private sector driven Research, Development and Innovation initiatives. For Inclusive growth, there has been provision made for balanced regional industrial development via specific extensions of Amritsar-Kolkata Industrial Corridor, Visakhapatnam-Chennai Industrial Corridor, Hyderabad-Bengaluru Industrial Corridor. Further inclusive measures include, provision for Pradhan Mantri Janjatiya Unnat Gram Abhiyan for covering 63,000 villages benefitting 5 crore tribal people and 100 branches of India Post Payment Bank to be set up in the North East region and total allocation of 3 lakhs crore for schemes benefiting women.”

Mr. Amey Belorkar – Fund Manager – Maharashtra and Aerospace Venture Fund at IDBI Capital Markets & Securities Limited.

“The Budget has focused on strenthening India’s MSME and Startup ecosystem through enhanced credit access by way of expanded fund-of-funds (FOF) of ₹10,000 crores as well as a proposal for setting up a Deep Tech FOF. Further the investment limits for MSME classification have been increased by 2.5 times which means that businesses can now invest significantly more while still qualifying as MSMEs. Also startups are benefited with the increase in Incorporation period by 5 years. The allocation of ₹500 crore for MRO sector and the establishment of a ₹25,000 crore corpus for shipbuilding shows India’s commitment to promote India’s self-reliance.
Additionally, India is focused to accelerate clean energy to develop at least 100 GW of nuclear power by 2047 and encourage private sector involvement. A dedicated ₹20,000 crore R&D initiative for Small Modular Reactors (SMRs) will be launched, with the goal of having at least five indigenously developed SMRs operational by 2033. The Budget also aims to create self reliance in EV and mobile phone battery manufacturing.”

Mr. Samir Jasuja, Founder and CEO of PropEquity (India’s largest real-estate data and analytics company)

“The Budget’s focus on improving infrastructure through PPP projects and interest free loan to States for capital expenditure, setting up an Urban Challenge Fund of Rs 1 lakh crore for rejuvenation of Indian cities will improve the real estate activity in metro and tier 2 cities by encouraging developers to invest and partake in the development.
The announcement of zero tax for income up to 12 lakh under the new tax regime will give a big boost to consumption including spurring demand for homes.

SWAMIH 2.0 with an allocation of Rs 15,000 crore is a small yet welcome move considering that the government is targeting to complete 1 lakh units. The government must come up with simplified mechanism to allow bigger developers to take over these stalled units so as to expedite the completion of over 5 lakh units currently stalled.”

Mr. Peush Jain, MD-Commercial Leasing and Advisory, Anarock Group

In a welcome move, the government in Budget 2025-26 announced the formulation of a national framework in areas like talent availability, infrastructure, building byelaws etc. as guidance to states for promoting Global Capability Centres in emerging tier 2 cities.

GCCs have been driving demand for office spaces and this move, alongside the government’s emphasis on improving liveability in Indian cities and Infrastructure development will go a long way in establishing India as a hub for Global Capacity Centre. This move will boost employment opportunities, creation of new office supplies and draw national level developers to these cities. The office sector growth is expected to stay buoyant with record leasing activity led by GCCs.

Mr. Ankur Jalan, CEO, Golden Growth Fund (GGF), a category II Real Estate focussed Alternative Investment Fund (AIF)

As India aims to become $30 trillion economy by 2047, the country must embark upon a phase of rapid development in the next two decades.

To this end, the Union Budget by exempting income upto Rs 12 lakh, will boost consumption and enhance savings.
It will also increase investment across all asset classes, including AIFs and real estate, by having a multiplier effect on the economy by boosting incomes and encouraging further investment.
The induced savings will also help government create a larger fund for investment and other capital expenditure.

Mr. Garvit Tiwari, Director & Co-Founder, InfraMantra, Gurugram based property consulting firm.

The exemption of tax on income up to Rs 12 lakh is not just a welcome move at this juncture considering falling consumption and rising inflation but a revolutionary move for India’s tax paying and consuming class.

The overall impact of this move will be seen in increased consumption, including discretionary and more importantly by increasing demand for homes which off late has been on a declining trend owing to rising prices.

In the last few years, real estate demand has been positively impacted by massive infrastructure development across Indian cities. The greater emphasis in this Budget on urban rejuvenation and infrastructure development will further give a boost to expanding housing supply and sales.

Mr. Sajeev Nair, Founder and Chairman, Vieroots

“The government’s focus on expanding healthcare infrastructure and improving nutrition is a positive step for India’s well-being, and it’s exciting to see how these developments align with Vieroots’ mission of promoting personalized wellness. The creation of a Centre of Excellence in Artificial Intelligence for health is another promising development. We’ve long believed in the transformative power of AI to revolutionize healthcare, especially when it comes to delivering personalized nutrition and wellness solutions. These advancements in AI will enhance our ability to offer data-driven insights that empower individuals to take charge of their health.
Moreover, the emphasis on increasing the production and supply of nutritious foods, including vegetables, fruits, and grains, is a key initiative. As a company committed to personalized wellness and nutrition, we at Vieroots are excited by the opportunity to support these efforts and help individuals make healthier, more informed food choices that align with their unique genetic profiles. These steps are paving the way for a healthier, more informed society, and Vieroots is eager to contribute to this vision.”

Mr. Sardar Taranjit Singh, Managing Director, JIS Group 

The Union Budget’s allocation of ₹1.48 lakh crore towards education, skilling, and employment is a progressive step towards building a knowledge-driven economy. The emphasis on initiatives like the National Digital University, AI-driven Centres of Excellence, and the PM Internship Scheme aligns with the nation’s vision of cultivating innovation and global competitiveness. As an institution committed to holistic education, JIS Group welcomes this investment in digital learning, technical education, and teacher development, which will empower the youth with future-ready skills and strengthen India’s position as an education leader on the global stage.

Mr Amit Prakash Singh, Co-Founder & Chief Business Officer, Urban Money

“The recent budget’s zero-tax provision on incomes up to Rs 12 lakh offers a significant advantage for borrowers and individuals seeking loans. By increasing disposable income, it alleviates financial pressure, making it easier to manage repayment obligations. Additionally, the enhanced savings capacity can contribute to larger down payments, reducing reliance on bigger loans and mitigating long-term financial strain. Existing borrowers may also find it easier to allocate funds for prepayments, accelerating debt reduction. However, increasing loan deduction limits, particularly for home loans, would have further enhanced credit accessibility, making financing more affordable and boosting borrower confidence.”

Mr. Pankaj Panjwani, CEO and Founder, KeenSemi

“The Union Budget 2025-26 marks a defining moment for India’s semiconductor ambitions.

The expanded PLI scheme of ₹6,200 crores and dedicated R&D fund send a clear signal —India is not just assembling but aiming to lead in design and fabrication of complex systems and chips. However, success hinges on execution of these schemes and lowering barrier for industry to utilize these incentives and schemes.

At KeenSemi, we see this as an opportunity to bridge the gap between India’s Indigenous requirements and skills needed to achieve them. We are ready to contribute, collaborate and deepen our role in India’s semiconductor value chain.

Global competitiveness will require not just financial incentives but also infrastructure readiness, faster approvals, and a seamless supply chain. This budget sets the right intent—what follows next will determine India’s strong trajectory in the global semiconductor supremacy race.”

Mr. Devndra Chawla – CEO & MD – GreenCell Mobility

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.

Ms. Praveena Rai, MD & CEO, MCX

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.” 

Mr. Rajesh Sharma, Managing Director, Capri Global

The Union Budget 2025 is a pragmatic step towards sustained economic growth, consumption, and a balanced social development by focusing on middle class, youth, farmers, and women. The Finance Minister has given the middle class lot more to cheer about than they expected while managing the fiscal deficit at manageable levels. The core growth engine of India – the MSME sector has been given enough thrust to improve efficiency, upgrade technological proficiency and access more growth capital by increasing their investment and turnover limits. The enhancement of credit availability with guarantee to cover export-focused MSMEs under the Export Promotion Mission, will improve their confidence to compete globally.

By strengthening financial access, promoting entrepreneurship, and supporting emerging industries, this budget paves the way for sustained economic expansion and job creation. Kudos to the Government for taking decisive strides in the journey towards a Viksit Bharat.”

resilient world.”

Mr. Madan Sabnavis, Chief Economist of Bank of Baroda.

“The Union Budget has been quite pragmatic in terms of content; and balanced fiscal prudence with effective measures to push forth growth. This is why it needs to be commended. The fiscal deficit ratio has been lowered to 4.4% which also keeps in check the borrowing programme and hence should assuage the bond market and yields. Major relief for individual tax payers was a demand for long which has been met quite decisively this time which should aid consumption. In fact, depending on the choice of individuals, the money saved on taxes would be also deployed for savings which will be useful for banks in particular. Industries too will benefit on both the consumer and infra sides as people spend money on consumer goods and the government keeps spending on infra projects. One can hence sense a lot of continuity in the budget in terms of expenditure priorities with a very good balance being drawn between social welfare and project expenditure – both of which are needed for the country today.”