Did Budget 2025 meet expectations or set a new benchmark? By Elets News Network - 01 February 2025

Union Budget 2025

With Budget 2025 in the spotlight, the government had the critical task of powering economic growth while maintaining fiscal discipline—a fine balance that could shape the nation’s financial future. In a bold move, the fiscal deficit has been trimmed to 4.4% of GDP, signaling a commitment to financial prudence. At the same time, the economy gets a powerful boost with a record-breaking ₹10.18 lakh crore capital expenditure outlay, aimed at infrastructure expansion and long-term growth.

Startups and MSMEs, the backbone of India’s economic dynamism, received a much-needed push with a ₹10,000 crore Fund of Funds, encouraging innovation and entrepreneurship. Meanwhile, tax revenues are projected to touch ₹28.37 lakh crore, ensuring a steady flow of resources to drive government initiatives.


Presented by Finance Minister Nirmala Sitharaman, this budget sets the tone for the year ahead. But the question remains—did it meet expectations, or did it surpass them? Let’s take a closer look at its impact across sectors.

Key Highlights

Major Announcements Details
Fiscal deficit target Reduced to 4.4% of GDP
Total government expenditure ₹50.65 lakh crore
Capital expenditure allocation ₹10.18 lakh crore
Net tax revenue projected ₹28.37 lakh crore
Startup & MSME Credit boost ₹10,000 crore Fund of Funds introduced
Agricultural Investment ₹1.5 lakh crore for rural infrastructure
Digital Trade Infrastructure Bharat TradeNet to ease trade documentation
Green Energy & EV push Investment in lithium-ion batteries & green hydrogen

Sector-Wise Breakdown

1. Startups, MSMEs, and Enterprises 

  • ₹10,000 crore Fund of Funds to scale up startups and encourage innovation.
  • Startup tax benefits extended till 2030 to ensure long-term business growth.
  • Deep Tech Fund of Funds for AI, blockchain, fintech, and quantum computing startups.
  • PM Research Fellowship with 10,000 fellowships in IITs & IISc to nurture technological advancements.
  • New Micro Enterprises Credit Card provides ₹5 lakh credit limit for small businesses.
  • Loans up to ₹2 crore for women, SC, and ST first-time entrepreneurs.
  • Boost to Toy & Footwear Industry with ₹4 lakh crore turnover target and 22 lakh new jobs.

2. Industrial Growth and Innovation 

  • National Manufacturing Mission to enhance exports and domestic production.
  • ₹25,000 crore Maritime Development Fund to support shipbuilding and port expansion.
  • Special incentives for semiconductor and AI industries to boost indigenous chip production.
  • ₹20,000 crore allocated for Research & Development across AI, biotech, and agritech.
  • Expansion of textile industry with duty exemptions on high-tech looms.

3. Infrastructure and Transportation 

  • ₹1.5 lakh crore investment in rural infrastructure including roads, logistics hubs, and connectivity.
  • 120 new regional airports under the UDAN scheme to improve air connectivity.
  • Modernisation of Railways with AI-driven automation and high-speed corridors.
  • Bharat TradeNet, a digital trade infrastructure for seamless and paperless trade.

4. Agriculture and Rural Development 

  • ₹1.5 lakh crore interest-free loans for rural infrastructure projects.
  • Expansion of Kisan Credit Card (KCC) with higher loan limits for farmers.
  • Mission for Self-Sufficiency in Pulses to reduce dependence on imports.
  • Cold storage and supply chain enhancements to improve food processing and minimise wastage.

5. Education, Healthcare, and Social Welfare 

  • ₹500 crore AI-powered Education Centre of Excellence to modernise learning systems.
  • 50,000 Atal Tinkering Labs to boost STEM education and digital literacy.
  • Expansion of IITs and AIIMS campuses to create 6,500 additional seats for students.
  • 10,000 new medical seats added to strengthen India’s healthcare sector.
  • ₹20,000 crore allocated for district cancer care centers.
  • Affordable housing support via SWAMIH Fund 2 for middle-class home buyers.

6. Banking and Financial Sector 

  • Grameen Credit Score Initiative to facilitate small business loans in rural areas.
  • Partial Credit Enhancement Facility by NaBFID to strengthen corporate bonds.
  • Expansion of banking access in rural areas through India Post Payments Bank.
  • Fully digitalized KYC processes to streamline banking services and security.

7. Renewable Energy and Sustainability 

    • ₹20,000 crore investment in Small Modular Reactors (SMRs) to expand nuclear power.
    • Duty exemptions for lithium-ion battery manufacturing to promote electric mobility.
  • Major incentives for wind, solar, and hydrogen energy projects.

 

Revised Income Tax Slabs

Annual Income (₹)

Tax Rate (%)

0 – 4 lakh No Tax
4 – 8 lakh 5%
8 – 12 lakh 10%
12 – 16 lakh 15%
16 – 20 lakh 20%
20 – 24 lakh 2
16 – 20 lakh 20%
20 – 24 lakh 25%

Individuals earning up to ₹12 lakh per year now pay no income tax, providing significant relief to middle-class families.

Hear from Industry Experts:

Vishal Jain, CEO, Manipal Business Solutions

“The government’s latest initiatives, including enhanced support for gig workers through e-Shram registration, comprehensive insurance coverage, and the revamped PM Swanidhi Scheme with higher loan limits and a ₹30,000 UPI-linked credit card, mark a significant step towards strengthening the gig and urban workforce. These measures will not only provide financial security but also unlock new opportunities for nearly 1 crore workers to thrive. We understand the important role gig workers play in last-mile financial services. They are at the core of the doorstep fulfillment services we provide to financial institutions, enabling seamless access to essential services like biometric KYC verification, contact point validation, and NACH registration—delivered directly to customers’ doorsteps. We support the government’s vision to create an inclusive ecosystem that underscores the critical role of gig workers in driving India’s growth story and look forward to contributing to this transformative journey.”

Kunal Varma, Co-Founder and CEO, Freo

“The government’s decision to increase FDI in insurance from 74% to 100% is a transformative step. This policy balances global capital and expertise with domestic economic interests. We expect it to attract global players, foster competition, drive innovation, and make insurance more affordable and accessible. The influx of foreign investment will also catalyze digital transformation, aligning with our vision of leveraging technology for seamless financial solutions.”

Pankaj Nawani, CEO, CarePal Secure

“The lot for the 2025 Budget of the insurance sector is the increase in the FDI limit from 75 to an unprecedented 100%. This decision will serve as a turning point for the Indian insurance sector, empowering foreign insurers to invest the entire premium into India. The government has envisioned attracting full foreign ownership into its fold to enhance further capital inflow into the insurance sector and create a competitive atmosphere that should benefit consumers in terms of quality service and product offerings. It is expected that a substantial infusion of these global players would bring with it the best expertise and innovations that can uplift the standards of insurance offerings in India. Besides fortifying broader government objectives of spurring economic growth and financial inclusion, this increased FDI limit will give job creation and skill development impetus. This is going to benefit the economy in general. This is a forward-looking shift that indicates a renewed emphasis on taking the insurance sector to new horizons that it would need to continue evolving with the ever-changing needs of the population, thereby providing solid security and protection. Hence, the big step towards making India an attractive investment destination for the global insurance industry is stamped with the 2025 Budget.”

MP Ahammed, Chairman, Malabar Group

”The budget reflects the government’s continued focus on revitalizing consumption, strengthening domestic manufacturing, and fostering job creation. Therefore, the budget has rightly focussed on offering fiscal impulse to boost consumption. With personal income tax reform, it will free up disposable income to boost urban consumption. It will boost the spending power of the middle-income segment and enhance consumer sentiment—both critical drivers of economic growth. For the retail and jewellery sector, a rise in consumption directly translates into stronger demand, fuelling expansion and employment generation.”

Suresh Khadakbhavi, CEO, Digi Yatra Foundation

“We welcome the government’s visionary decision to expand India’s aviation infrastructure through new greenfield airports in Bihar and the modified UDAN scheme targeting 120 new destinations. These announcements reflect the government’s commitment to strengthening regional air connectivity and making air travel accessible to more Indians. The remarkable expansion of UDAN has already connected 88 airports and served 1.5 crore middle-class travellers. As air connectivity grows to accommodate 4 crore additional passengers, we look forward to facilitating the smooth movement of passengers at a wider number of airports.  The government’s emphasis on medical tourism and the ‘Heal in India’ initiative, coupled with easier visa norms, marks a significant step toward positioning India as a global healthcare destination. The integration with PM Gatishakti’s data infrastructure will enable synchronised development across the aviation sector. As the government partners with states to develop 22 premier tourist destinations, we are committed to supporting this growth by expanding our technology, thereby contributing to India’s emergence as a global aviation leader and strengthening Digital India.”

Rikant Pittie, CEO and Co-Founder, EaseMyTrip

“The Union Budget 2025-26 presents a transformative vision for India’s travel and tourism sector, reinforcing its role as a key driver of economic growth and employment. The expansion of the UDAN scheme, connecting 120 new destinations and enabling 4 crore additional passengers over the next decade, will significantly enhance regional connectivity, making travel more accessible and affordable for millions. The facilitation of greenfield airports in Bihar further underscores the government’s commitment to strengthening aviation infrastructure across the country. Moreover, the proposed development of 50 top tourist destinations, coupled with performance-linked incentives for states, streamlined e-visa facilities, and visa-fee waivers, will position India as a more attractive global travel destination by easing out travel infrastructure. Initiatives like skill development programs, MUDRA loans for homestays, and enhanced connectivity will empower local communities, create employment opportunities, and enable businesses to thrive more efficiently. The emphasis on spiritual tourism, particularly in destinations linked to Lord Buddha, and the strategic push for medical tourism through the ‘Heal in India’ initiative will further diversify India’s tourism offerings, attracting travelers from across the world. With a focus on seamless travel, enhanced infrastructure, and an enabling policy framework, this budget lays a strong foundation for a new era of tourism-led economic growth, ensuring India remains a top destination for both domestic and international travellers.”

Balasubramanian A, Senior VP and Business Head at TeamLease

“The Finance Minister’s announcements will give a strong push to India’s tourism, healthcare, and aviation sectors, creating jobs and driving economic growth. Easier visa norms under ‘Heal in India’ will attract more medical tourists, boosting hospitals, hospitality, and foreign exchange earnings. Opening up PM GatiShakti data to private players and developing 22 key destinations in partnership with states will strengthen tourism infrastructure and local economies. The expansion of UDAAN to 120 new destinations and new greenfield airports in Bihar will improve regional connectivity, making air travel more accessible to the middle class while supporting trade and investment. These steps position India as a key global destination for tourism, healthcare, and aviation-driven growth.”

Dr. Hardik Ajmera, Medical Director, Saifee Hospital, Mumbai

“The budget is a holistically defined approach that exactly addresses some of the most critical pain points of the healthcare sector, thus contributing to the nation’s march towards emerging as Viksit Bharat. The move to introduce 200 day-care cancer centers is a stellar step against battling cancer that will take India to global stage, and will especially be of immense benefit to the rural counterpart and Economically Weaker Section of the country.  Along with this, the move to exempt life-saving drugs and provide concession on custom duties on another 6 will significantly reduce the burden on patients dealing with cancer, rare diseases and chronic conditions, enabling quality treatment and reducing the fatality rate. India is already a revered destination for medical tourism and with collaborative efforts between the government and private sector, we foresee a robust outcome that will benefit the Indian economy by attracting foreign patients to India for treatment by proposing easier visa norms and facilities. Overall, the 2025 budget has defined the pace and outline for India’s journey towards becoming self-reliant and we look forward to many more revolutionary measures in times to come.”

Prashant Singh, COO, LeadSquared

“The Union Budget 2025-26 marks a pivotal shift in India’s innovation landscape, introducing key policy changes that boost economic momentum while fostering a conducive environment for AI, BFSI, and startup sectors. At LeadSquared, we welcome these policy shifts that align with our mission of delivering cutting-edge, AI-enhanced business solutions. The government’s initiatives supporting local production, increasing insurance sector FDI thresholds, and implementing new entrepreneurial support systems—particularly benefiting women entrepreneurs and new business founders—complement our objectives of driving digital evolution across BFSI and other industries. Given the expanded scope for startup growth and emphasis on advanced technologies, we are ideally positioned to support our clients in leveraging these opportunities, enabling superior customer interactions and promoting expansion in this evolving digital landscape.”

Rahul Bajaj, Founder & CEO, Digital Darwin

“As we look ahead to 2025, the Union Budget’s focus on digital transformation, AI innovation, and healthcare infrastructure is a welcomed milestone for the growth of tech-driven businesses like Digital Darwin. The government’s initiatives to strengthen the AI ecosystem and enhance healthcare accessibility through digital solutions will provide an unparalleled opportunity for companies at the intersection of sports, healthcare, and technology. The allocation of funds towards AI research, adoption of digital public infrastructure, and upskilling of talent will empower startups like ours to scale further, innovate, and create solutions that address real-world challenges. Digital Darwin is excited to contribute to India’s vision of becoming a global leader in AI-driven industries, and we look forward to collaborating with the government to drive forward these transformative initiatives.”

Jaya Vaidhyanathan, CEO, BCT Digital

“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.”

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.”

Suresh Khadakbhavi, CEO, Digi Yatra Foundation

“We welcome the government’s visionary decision to expand India’s aviation infrastructure through new greenfield airports in Bihar and the modified UDAN scheme targeting 120 new destinations. These announcements reflect the government’s commitment to strengthening regional air connectivity and making air travel accessible to more Indians. The remarkable expansion of UDAN has already connected 88 airports and served 1.5 crore middle-class travellers. As air connectivity grows to accommodate 4 crore additional passengers, we look forward to facilitating the smooth movement of passengers at a wider number of airports. The government’s emphasis on medical tourism and the ‘Heal in India’ initiative, coupled with easier visa norms, marks a significant step toward positioning India as a global healthcare destination. The integration with PM Gatishakti’s data infrastructure will enable synchronised development across the aviation sector. As the government partners with states to develop 22 premier tourist destinations, we are committed to supporting this growth by expanding our technology, thereby contributing to India’s emergence as a global aviation leader and strengthening Digital India.”

Sriram Iyer – CEO, HDFC Pension

“Inclusion of NPS Vatsalya as an eligible investment under 80 ccd 1(b) in the old tax regime is a positive. This should accelerate the adoption of NPS Vatsalya, given the tax benefit that the parent will get by contributing to NPS Vatsalya and kick start the journey of building a long term corpus for the child.”

George Alexander Muthoot, MD, Muthoot Finance

“The Honorable Finance Minister today presented a balanced and inclusive budget that strongly aligns with the vision of ‘Sabka Vikas,’ ensuring economic opportunities for major pillars of the society – the poor, youth, farmers, and women. The significant thrust on agriculture, with targeted credit measures under the Prime Minister Krishi Yojana and the expansion of Kisan Credit Cards, will empower 1.7 crore farmers. This will not only enhance agricultural productivity but also boost rural consumption. Furthermore, the government’s focus on MSMEs, women entrepreneurs, and first-time business owners through term loans of up to ₹2 crore and structured capacity-building initiatives will drive small business growth, fostering employment and strengthening the country’s production ecosystem. Additionally, the ₹10,000 crore Fund for Startups will fuel entrepreneurship. These measures will contribute to a more self-reliant and resilient economy. As India’s largest gold loan NBFC, Muthoot Finance remains committed to supporting this vision by facilitating seamless access to credit and financial inclusion for individuals and businesses across India. Further, the union budget has been supportive of middle class and we believe that the increased disposable incomes will fuel aspirations. All of the above initiatives will not only fortify the economic foundation but also drive a more financially inclusive future.”

Suresh Darak, Founder, Bondbazaar

“In a challenging economic environment with slowing GDP growth, the budget could have taken a prudent approach by fiscal expansion rather than fiscal consolidation, reducing the fiscal deficit from 4.8% in FY25 to 4.4% in FY26. While this reflects a commitment to financial stability, a stronger push on capital expenditure could have further strengthened employment, business growth, and overall economic activity.”

Praneet Mungali – Educationist and Trustee, Sanskriti Group of Schools

“It is a welcome move to see the focus on innovation via more Atal Tinkering labs and additional infrastructure for STEM learning especially for AI. We are at the dawn of the AI epoch and the only way for our country to become a developed nation is to stay in lockstep with the new technologies whether it is AI or quantum computing. This budget has made some important contributions towards that goal by encouraging innovation and increasing the outlay for capacity building in these vital areas”

Dr. Sujit Paul, Group CEO Zota Healthcare Ltd

“Healthcare is marked as a priority in Union Budget 2025-26, with some major reforms coming in cancer-care, generics, and medical education. Exemption from Basic Customs Duty for Patient Assistance Programs will bring down the cost of medicines significantly for thousands of patients. To this end, 37 new medicines and 13 new patient assistance programs have been included in the exemption list. The establishment of Daycare cancer centres across all district hospitals will ease the way towards accessible treatment. Strengthening medical education by adding 10,000 new medical seats this year adds up to a 75,000-seat increase in five years. This is a sure reflection of the present budget, showcasing the strong commitment to inclusive and affordable healthcare.”

Dr. Sameer Bhati, Director of Star Imaging and Path Lab Pvt. Ltd.

“The Union Budget 2025-26 represents a significant milestone in the direction of accessible and affordable healthcare. The establishment of daycare cancer treatment centres in each district hospital, with 200 for FY 2025-26, will facilitate early diagnosis and treatment. Thirty-six life-saving drugs included in the exemption list for full customs duty and concessional rate of duty on bulk drugs will guarantee price affordability for the treatment of cancer and rare and chronic diseases. The strengthening of medical tourism under the ‘Heal in India’ initiative, in collaboration with private healthcare, will help make India a global healthcare destination. Thus, the budget takes a forward-looking view on public health, with accessibility, affordability, and innovation as the pillars.”

Rohit Mahajan, Managing Partner & Founder plutosONE

“The 2025 Budget is transformative for India’s startup ecosystem. A new Fund of Funds for the startups will be established with an added ₹10,000 crore, making for an awfully flattering financial commitment on the part of the Reserve Bank and mighty amounts of official means that have already been made. An inflow of finance enabled by this stage will further discharge the majority of innovation and scaling across the nation. The best part about all this is that it will facilitate up to 5 lakh first-time women, Scheduled Castes and Scheduled Tribes entrepreneurs, and it will be sowing the seeds of inclusivity and diversity into India’s startup world. The dreams of Indian entrepreneurship were now coupled with possibility.”

Mukesh Pandey, Director of Rupyaa Paisa

MSMEs are strengthened by the Union Budget 2025-26 through major tax and credit reforms, which also induce growth and employment creation. The increased MSME credit guarantee from ₹5 crore to ₹10 crore is expected to generate another ₹1.5 lakh crore in credit over five years. Investment and turnover limits for MSME classification have also doubled, thus enlarging the benefits. With MSMEs providing 45% of exports with 75 million workers, the introduction of customized credit cards and the extension of the Fund of Funds would enhance capital accessibility and solidify India’s stance as a global manufacturing powerhouse.

Also Read :- Union Budget 2025 – A Game-Changer or Just Another Leap?

Sirish Korada, Managing Director and CEO of BINDZ

“The Union Budget 2025-26 underscores the government’s unwavering commitment to fostering entrepreneurship and innovation. The establishment of a ₹10,000 crore corpus under the Startup India initiative, coupled with a ₹91,000 crore alternative investment fund and an expanded ₹10,000 crore Fund of Funds (FoF), is a decisive move to accelerate startup growth. Additionally, enhancing credit guarantee cover for startups will significantly improve access to capital, fostering a more robust and dynamic entrepreneurial ecosystem. These measures will not only attract investment but also drive job creation and contribute meaningfully to India’s economic growth trajectory.

With these progressive policies, the Budget lays a strong foundation for a thriving startup ecosystem, increased global competitiveness, and sustained economic growth.”

Anand Kumar Bajaj, Founder, CEO & MD, PayNearby

“The Union Budget 2025 takes bold steps to foster rural growth, women empowerment, and MSME ecosystem, unlocking significant opportunities for economic growth in Bharat. Easing credit for women, Scheduled Caste and Tribes, and first-time entrepreneurs with loans up to ₹2 Crore, alongside the revamped support for MSMEs, will not only empower local businesses but also ensure a more robust economic framework. The increase in credit guarantee covers, along with the introduction of customized credit cards for micro-enterprises, will provide much-needed relief to entrepreneurs and help sustain business growth in local economies. The announcement to develop Grameen Credit Score framework to serve the credit needs of SHG members and people in rural areas is a welcome step to boost rural economy, especially women economic development through SHG framework. Additionally, the revamped KYC process will streamline business operations, making it more efficient across sectors, while the enhanced PM Svanidhi scheme will support street vendors by encouraging digital payments and reducing reliance on informal credit. With PayNearby Digital Naari’s focus on bridging the financial, digital and healthcare gaps among women, especially rural women, it is encouraging to see Saksham Anganwadi and Poshan 2.0 programs getting announced. This will work towards improving the nutritional support for women and children, leading to better food security for women. Overall, PayNearby welcomes the focus on women and rural economy, and steps that boost more economic participation by women and drives rural development is important for the next orbit of growth for the country.”

Shantanu Bairagi, CEO – Veefin Capital

“The role of MSMEs in the journey towards Viksit Bharat has been called out clearly by the Finance Minister and commensurate to that are some of the fiscal and policy measures announced in the budget to boost the backbone of the economy.  

Credit & MSME 

Availability of credit access, simplification of CKYC and enhancement of credit guarantee covers for MSMEs, startups and exporters stand out as key fiscal support measures from the Government of India. A big increase in Udyam registrations, which is an indicator of extent of formalization of small and medium businesses, is expected with customized credit cards with INR 5L limit being introduced for registered businesses. With the government expecting to give 10 Lakh credit cards in a year, this is going to be yet another measure to incentivize MSME businesses to formalize and have faster access to working capital. The enhancement in the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively will spur widespread adoption of digitization among small businesses and bring them on par in terms of access to commerce and capital. 

The Manufacturing Mission to furthering Make in India and Make for the World by improving ease of doing business, create a vibrant MSME ecosystem and improve availability of technology will enhance the credit worthiness of small and medium sized and boost the confidence of financial institutions in doubling up their efforts to lend to MSME. The Economic Survey has already indicated how banks credit to MSMEs has grown 13% y-o-y. Some of the measures announced in the budget will further boost credit for the MSME ecosystem. 

DPI 

India’s steadfast approach to being recognized as an example in building digital public infrastructure got yet another boost with the announcement of ‘BharatTradeNet’ (BTN) for international trade – a unified platform for trade documentation and financing solutions.”

Sundeep Mohindru, Founder and Promoter, M1xchange

“The Union Budget 2025 has given much-needed attention to MSMEs, recognizing them as the key driver of India’s economy and global competitiveness. The enhancements in definition of MSME, upto  ₹125 crore of investment in plant and machinery and an annual turnover of ₹500 crores,  will provide much-needed support to MSMEs in scaling operations, embracing new technologies, and accessing capital more efficiently. With new definition the benefit of TReDS will expand to larger set of enterprises for facility of early realisation of their dues from customers, who were earlier deprived of this benefit.

Expanding the credit guarantee cover and introducing customized credit cards for micro-enterprises will inject much-needed capital liquidity into the MSME sector, allowing businesses to invest in growth and innovation. Further, set up of Bharat Trade Net portal will digitalise the documentation flow of cross border business and enhance possibility of cross border finance for MSME exporters in big way on ITFS (International Trade Finance System) platform.

The next level initiative by government to decriminalise 100 more provisions under various Acts will give confidence to businesses to invest more and experience the ease of doing business. Additionally, the Manufacturing Mission’s emphasis on workforce development, and technology adoption will further strengthen India’s position as a global manufacturing powerhouse. Especially, with global companies increasingly looking to India as a preferred business destination, these measures will not only improve MSME productivity and competitiveness but also accelerate the ‘Make in India’ vision, helping position India as a dominant player in the global supply chain.”

Gurjodhpal Singh, CEO, Tide India

“The Union Budget 2024-25 has made notable progress in addressing the needs of MSMEs, aligning with several key expectations. The enhancement of investment and turnover limits for MSME classification by 2.5 and 2 times, respectively, is a forward-looking step that will encourage scalability and job creation, particularly for the youth. This move is likely to instill confidence in MSMEs to expand their operations and contribute more significantly to employment generation.

The substantial increase in credit guarantee cover—up to ₹10 crore for Micro and Small Enterprises and ₹20 crore for Startups—addresses the persistent challenge of access to capital. The introduction of customized Credit Cards for micro-enterprises is another positive step, simplifying funding and fostering operational efficiency. Additionally, the budget’s emphasis on inclusivity, through schemes offering term loans up to ₹2 crore for women, SCs, and STs first-time entrepreneurs, alongside online capacity-building programs, is commendable. The recognition of gig workers through identity cards and healthcare benefits under PM Jan Arogya Yojana further supports the new-age services economy.

However, the budget falls short in certain areas. A more focused approach to leveraging AI in business and fintech partnerships could have significantly improved access to credit for MSMEs. While initiatives like transforming India Post into a public logistics organization and leveraging rural post offices for economic growth indirectly promote digitization, a direct push for AI-driven solutions would have been more impactful. Additionally, explicit tax reforms to ease compliance burdens on MSMEs remain unaddressed, which could have further strengthened the sector.

Overall, the budget lays a solid foundation for MSME growth, with a focus on credit availability, scalability, and inclusivity. While it misses opportunities to address AI integration and tax reforms, the measures announced are poised to empower MSMEs to drive economic recovery, job creation, and India’s vision of becoming a global manufacturing hub. The success of these initiatives will depend on effective implementation and continued focus on addressing gaps in the future.”

Rajesh Varrier, EVP, Global Head of Operations, Cognizant and Chairman and Managing Director, Cognizant India

“The Union Budget 2025 announced today marks a bold step toward India’s digital and AI-driven future. The government’s focus on AI innovation, digital governance, and workforce transformation will play a crucial role in shaping the next phase of growth. The investment in Centre of Excellence in AI for Education, along with the expansion of National Centres of Excellence for Skilling, will be instrumental in building an AI-ready workforce and strengthen India’s position as a global AI hub.

At Cognizant, we welcome these forward-looking initiatives that will accelerate AI adoption and enhance efficiency across industries. The emphasis on AI skilling aligns with our belief that successful AI integration requires a workforce equipped with future-ready skills. Through our learning and development programs, we remain committed to enabling talent to thrive in an AI-powered economy. This budget sets the stage for AI-led growth and innovation.”

Piyush Somani, Chairman and Managing Director, ESDS Software Solution Limited

The Union Budget 2025-26 lays a strong foundation for India’s digital future, with a significant focus on AI, deep tech and skilling. The establishment of a Centre of Excellence in Artificial Intelligence for education with an outlay of ₹500 crore highlights the government’s commitment to fostering innovation and preparing the next generation for AI-driven opportunities. The proposed Deep Tech Fund of Funds and 10,000 fellowships for tech research in IITs and IISc under the PM Research Fellowship Scheme will accelerate advancements in cutting-edge technologies. Additionally, the promotion of Global Capability Centres (GCCs) in Tier-2 cities will strengthen India’s digital infrastructure, unlocking new opportunities in cloud computing, AI and cybersecurity. At ESDS, we are excited to align with these transformative initiatives and contribute to India’s journey as a global technology leader.

Nishant Rathi, Founder & Director, NeoSOFT

“The Union Budget 2025 will help fortify India’s technological sector. The government’s efforts to develop digital infrastructure, especially the elimination of import taxes on essential smartphone components is truly acknowledged. This decision will significantly boost domestic manufacturing and make India a more attractive hub for global tech giants. Regarding developing technologies, the significance of the Production Linked Incentive (PLI) scheme for electronic components, which is worth ₹25,000 crore. This program will increase investment, improve research and development, and establish India as a global leader in electronics production. Promoting autonomy in key technological domains is an important step. While the budget takes progressive steps, more investment in cybersecurity infrastructure is necessary. Strengthening digital security and simplifying compliance will be key to fostering a secure and business-friendly environment. The government has set an excellent foundation for India’s digital and technological development by addressing these important issues. However, he emphasizes that to fully realize the potential of the sector, ongoing efforts in cybersecurity and improving operational efficiency are necessary.”

A Budget to Propel India Towards Viksit Bharat 2047

The Union Budget 2025-26 sets a bold and ambitious path for India’s economic growth, blending fiscal discipline with investment in technology, entrepreneurship, and sustainability. With tax relief for individuals, stronger financial support for startups and MSMEs, and large-scale investments in clean energy and infrastructure, this budget is designed to make India a global leader.

  • Empowers MSMEs & Startups
  • Expands Infrastructure & Trade
  • Invests in AI, Technology, & Clean Energy
  • Enhances Tax Benefits for the Middle Class
  • Supports Farmers & Rural Growth

With a long-term vision for innovation, sustainability, and economic prosperity, the Union Budget 2025-26 is a stepping stone towards India’s rise as a global powerhouse by 2047.

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