Union Budget 2025 – A Game-Changer or Just Another Leap? By Kaanchi Chawla - 31 January 2025

Union Budget 2025

With India racing towards its $5 trillion economy goal,  the Union Budget 2025-26 is set to play a crucial role in shaping the business landscape across sectors. As industries navigate rapid digital transformation, AI-driven innovation, and sustainability imperatives, expectations are soaring for bold fiscal reforms that fuel growth, streamline compliance, and unlock new opportunities. From manufacturing and BFSI to IT and infrastructure, enterprises are looking for policy interventions that drive efficiency, investment, and global competitiveness.

A projected 20% increase in capital expenditure could supercharge infrastructure, logistics, and clean energy, while tax incentives for startups, MSMEs, and R&D-led industries may catalyse India’s innovation ecosystem. The government is also expected to focus on digital public infrastructure, AI regulations, and cybersecurity frameworks to fortify the country’s digital-first economy. With rising global uncertainties and inflationary pressures, businesses are eager to see whether the budget will deliver the right stimulus or if challenges will temper its impact.


As industry leaders brace for what’s ahead, the big question remains—will Budget 2025 be the catalyst for enterprise growth, or will it fall short of expectations? 

Let’s hear from the experts shaping the future of India’s business landscape:

Lalit Ahuja, CEO, ANSR

“As India strengthens its position as a global hub for Global Capability Centers (GCCs), targeted fiscal and policy measures could further accelerate the sector’s growth. Simplifying the company registration process specifically for GCCs would reduce setup timelines, enabling faster investments and operations. Extending tax incentives, such as a 15% concessional tax rate, would foster innovation and attract global organizations to establish and scale their operations in India. Additionally, raising the threshold for Safe Harbour Rules would level the playing field for mid-sized GCCs, which are critical to driving the next wave of growth. A uniform, centralized GCC policy could further enhance India’s appeal by streamlining compliance and creating a predictable environment for investors. With over 1,700 GCCs already employing 1.9 million professionals and projected revenues exceeding $100 billion by 2030, these reforms could solidify GCCs as a cornerstone of India’s economic future and global leadership.”

Ashish Mishra, Head of Digital & Technology at General Mills India Center

“As the Union Budget 2025-26 approaches, we at General Mills are optimistic about policy measures that could further enable the integration of technology and innovation into the Agri-food industry. The Agri- food sector is undergoing rapid transformation, and strategic investments in digital infrastructure, automation, and advanced analytics are crucial to addressing evolving consumer needs and enhancing operational efficiency. Simplified compliance frameworks for tech- enabled solutions can empower businesses to introduce sustainable practices across the supply chain, from farm to table, while simultaneously fostering transparency and trust with consumers. Moreover, increased budgetary allocations towards research and development in agritech and foodtech can unlock new opportunities for collaboration and innovation. This would allow us to explore advancements in AI, IoT, and blockchain to build more resilient and intelligent supply chains and optimize logistics. Additionally, as GCCs evolve into globally integrated innovation hubs, they play a pivotal role in driving technological advancements and intellectual property creation. To sustain and amplify this impact, the government should establish incubation hubs and incentivize start-ups. Restoring weighted deductions for R&D will boost India’s appeal as an innovation hub, encouraging GCCs to create advanced solutions and positioning India as a global R&D leader. Presently, several Indian states are proactively launching state level policies to attract GCC’s in tier-2 towns. We strongly feel there is need of a comprehensive federal policy in complement with state policies which will create conducive environment for GCC’s to thrive. The government must invest in advanced infrastructure, education, and training programs to prepare talent in these locations for high-demand, niche GCC roles and collaborate with stakeholders to establish institutions, labs, and training centers specializing in these areas. Industry-relevant curriculum innovation, large-scale internship programs, and incentives for GCCs to invest in skill development are critical. These efforts will ensure that India remains the preferred destination for high-value GCC operations.”

Manish Kumar Goyal, Managing Director at Ikeda LTD

“For the fintech ecosystem, the Union Budget 2025 is an important moment. Startups are eager for legislative support to reduce the ongoing credit bottleneck, particularly for NBFCs, which are essential for advancing financial inclusion. We aim for loosened credit standards, more funding options, and tax benefits that promote innovation and growth. Initiatives such as R&D tax credits and dedicated innovation hubs, particularly in Tier 2 and Tier 3 cities, have the potential to promote entrepreneurship and provide new possibilities. Skill 2.0 programs and Skill Credits could be game changers for MSMEs, allowing them to strengthen their workforce and remain competitive on a global scale. All things considered, we anticipate policies that promote expansion, facilitate business transactions, and establish India as a global centre for innovation. The country’s digital economy will surely be strengthened, and a more amicable budget will fuel economic progress.”

Siva's pic Siva Balakrishnan, Founder and CEO of Vserve

“The Indian economy is hopeful about the financial year 2025, reflecting increasing private expenditure and investment. The e-commerce industry, which relies on strong consumer trends and infrastructural expansion, will have a lot of room to grow with this budget. One of the primary expectations – government’s emphasis on skill development and job creation. With the labour force participation rate (LFPR) steadily rising and unemployment rates dropping, these policies are likely to boost the e-commerce ecosystem. A skilled and employed workforce equals more discretionary income, which strongly correlates with growing online buying and service demand. Rising prices, particularly in rural regions, influence purchasing power. Measures like Direct Benefit Transfers (DBTs) and agricultural supply chain changes have the potential to stabilise rural demand, and improving measures could considerably enhance the sector’s rural growth.”

Pratik Kamdar- CEO & Co Founder, Neuron Energy Pratik Kamdar, CEO and Co-founder Neuron Energy

“The Union Budget 2025 presents a pivotal moment for the EV industry, which is poised to reach a valuation of Rs 20 lakh crore and create nearly five crore jobs by 2030. While the 5% GST on EVs has fostered adoption, achieving GST parity for EV batteries could further reduce production costs and make EVs more accessible. Enhancing the FAME II scheme with extended timelines and increased incentives will catalyze widespread adoption across various vehicle categories. To support infrastructure development, prioritizing charge point operators under priority sector lending could lower financing costs and accelerate the deployment of charging networks. Additionally, bridging the gap in local EV battery manufacturing through budget-backed initiatives and fostering international collaborations will be instrumental in establishing India as a global leader in the EV ecosystem.”

Mr. Rohit Manglik,CEO, EduGorilla Rohit Manglik, Founder & CEO, EduGorilla

“The Union Budget must significantly increase the allocation to the education sector to meet the goals of NEP 2020, as human capital is an enabler of Viksit Bharat. Increased allocation to digital infrastructure will enable us to reap the benefits of the technological revolution. Currently, educational products and services are taxed at 18% GST, the burden of which is passed on to customers. We hope the Budget streamlines GST rates on various educational products and services. The proliferation of AI has necessitated upskilling and reskilling of the workforce to ensure they remain comparative in the job market. Hence, skilling should be recognised as a vital component of education. The need of the hour is to strengthen the Model Skill Loan scheme, which comprises targeted funding for industry-aligned certifications to enhance employability in various sectors.”

Ganesh Sonawane - Frido Founder Ganesh Sonawane, Founder and CEO of Frido

“India’s startup ecosystem is a thriving hub of innovation, and we hope that the Union Budget 2025 reflect its potential. Startups, particularly those focusing on health-focused innovations, stand to benefit greatly from policies that streamline GST processes, introduce R&D tax incentives, and provide easier access to funding could ignite a wave of innovation, empowering manufacturers and startups to meet the increasing demand for wellness products. Encouraging startups to scale manufacturing for global markets will also be crucial in reinforcing the Make in India for the world initiative. With the right support, entrepreneurs can position India as a global hub for wellness and ergonomic solutions, showcasing the country’s ingenuity and innovation on the world stage.”

Spokesperson Image_Dushyant Chachra, CFO, SAEL Dushyant Chachra, CFO, SAEL

“With the world uniting to embrace sustainability and innovative solutions leading the way, the transition to a greener future has never been more exciting. Budget 2025 holds immense potential to drive this positive change by introducing progressive policies and incentives that will accelerate India’s journey toward an environmentally thriving future. Increased investment in the Renewable Energy sector, along with a well-structured energy transition policy, can unlock new opportunities for lower emissions and cleaner growth. By promoting incentives for green energy, solar panels, batteries and fostering self-reliance through rooftop solar initiatives, India is poised to become a global leader in sustainable energy.”

Ruchi Sogarwal, Director of Corporate Affairs, Takeda Biopharmaceuticals India  Ruchi Sogarwal, Director of Corporate Affairs, Takeda Biopharmaceuticals India 

“The upcoming Union Budget 2025-26 holds immense potential to strengthen the pharmaceutical sector and position India as a global pharmaceutical leader. By increasing public healthcare spending, fostering innovation through public-private partnerships, and investing in advanced research and development, the government can accelerate the delivery of cutting-edge therapies. These initiatives will enhance internal capabilities, drive drug discovery, and improve the accessibility of innovative medicines. Additionally, a robust allocation towards healthcare infrastructure, particularly in Tier 2 and Tier 3 cities, will ensure that quality care reaches underserved regions. We are optimistic that this budget will build upon the government’s ongoing commitment to fostering a healthier India while ensuring equitable access to healthcare for all.”

Ayush Chauhan, Executive Director, Prakash Hospital

“The Union Budget 2025 is expected to prioritize strengthening India’s healthcare sector by making significant investments in public health infrastructure. Ensuring equitable access to quality care should remain a core focus, with affordability as a key priority to benefit all sections of society. Reducing healthcare costs while extending essential services across economic strata can lead to a more inclusive and robust healthcare system. It is anticipated that the budget will emphasize the expansion of digital health portfolios, including telemedicine and AI-driven diagnostic solutions. These advancements can bridge care gaps in urban areas while offering low-cost, efficient healthcare solutions to underserved regions. Targeted initiatives, such as workforce training programs, are also expected to address personnel shortages and enhance the inclusivity, efficiency, and sustainability of healthcare services. A significant expectation is the removal of GST on health insurance premiums. This step would make health insurance more affordable, enabling a larger population to access coverage and reduce out-of-pocket expenses. Additionally, increasing the coverage limit under the Ayushman Bharat scheme is anticipated to provide broader financial protection for vulnerable populations, ensuring access to advanced treatments and comprehensive care. By addressing these critical areas, the Union Budget 2025 has the potential to create a transformative impact on India’s healthcare system, paving the way for better patient outcomes and solidifying the nation’s position as a leader in global healthcare.”

Mr. Amey Belorkar, Fund Manager - Defence and Aerospace Venture Fund, IDBI Capital Markets & Securities Ltd. Amey Belorkar, Fund Manager – Defence and Aerospace Venture Fund, IDBI Capital Markets & Securities

“We anticipate that Budget for FY 2025-26 will be pivotal in accelerating India’s journey towards self-reliance in the defence and aerospace sectors, both of which are on the brink of significant growth. The government’s emphasis on Atmanirbhar Bharat and Make in India is likely to be bolstered by strategic budgetary allocations that promote innovation, support MSMEs, and streamline defence procurement processes. A particular focus on emerging areas such as unmanned aerial systems (UAS), advanced materials, cyber defence, and space technology could unlock substantial opportunities for private capital engagement. The burgeoning space tech industry, driven by advancements in satellite development, launch capabilities, and space exploration, offers significant potential for innovation and investment. In line with the government’s indigenisation drive, we foresee a projected growth of 15-20% in the defence sector, propelled by supportive budgetary measures, incentives for private sector involvement, and a robust push for indigenous manufacturing. The government’s planned introduction of a new scheme focused on R&D in deep-tech technologies, such as AI, robotics, and advanced weapon systems, is expected to further catalyze innovation and development within the sector. Initiatives targeting the modernization of India’s armed forces, along with anticipated attention on Defence Industrial Corridors and production-linked incentives (PLIs), are set to provide crucial momentum for the sector’s expansion.”

Mr. V.P. Nandakumar, MD and CEO, Manappuram Finance V. P. Nandakumar, MD & CEO at Manappuram Finance

“With inflation showing no signs of abating within the Reserve Bank of India’s target range in the near future, I believe the finance minister will implement necessary policy measures to curb price increases. This could involve reducing taxes on consumer goods such as packaged food and edible oils. This would boost household disposable income and positively impact private consumption. Furthermore, I believe the Budget should include measures to encourage savings through tax rationalisation and stimulate loan growth. A separate announcement on developing future-proof digital infrastructure for the financial sector in the era of artificial intelligence is also anticipated.” 

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Suresh Darak, Founder, Bondbazaar

“Over the past few budgets, tax rates for various investment instruments and income streams have been gradually streamlined, reducing exceptions and differential treatments. This has brought several options, such as Fixed Deposits, Debt Mutual Funds and Bonds, onto a level playing field by taxing them similarly. This alignment eliminates arbitrage opportunities between instruments and fosters a more balanced investment landscape. Looking ahead to Budget 2025, we anticipate further progress in this direction, and possibly a complete revision in the structure of personal income tax. We may see a much simpler unified approach to taxation, spanning all asset classes in the coming years.”

Ashutosh Ashutosh Upadhyay, Founder, Cognio Labs

“The education sector is ripe for AI-driven transformation, with global EdTech AI solutions expected to reach $80 billion by 2030. We anticipate budget allocations for developing personalized learning platforms powered by adaptive AI algorithms. Key focus areas should include funding for AI-enabled student assessment tools, virtual learning environments, and automated content generation systems. The government should introduce incentives for educational institutions implementing AI-based administrative systems and learning analytics platforms. These measures will democratize quality education while creating a future-ready workforce equipped with digital skills.”

KidZania India Tarandeep Singh Sekhon, Chief Business Officer, KidZania India

“As we approach the 2025 Union Budget, KidZania India is hopeful that the government will continue to prioritize education and skill development, in line with the objectives of the National Education Policy (NEP). The Indian edutainment sector experienced remarkable growth in 2024, reaching a market value of $146 billion, with projections suggesting an 18% annual growth rate through 2030. This surge is largely driven by the increasing demand for interactive, engaging educational experiences and advancements in learning technologies. Looking ahead to the upcoming budget, we are eager to see policies that support experiential learning and edutainment-based education, such as incentives for these innovative formats, reductions in GST rates on edutainment services, and tax benefits for institutions investing in skill-based educational infrastructure. We also anticipate strong support for public-private partnerships that create immersive learning environments, along with funding for both digital and physical infrastructure. These measures will be critical in bridging the gap between theoretical knowledge and practical skills, ensuring that India’s youth are equipped to become confident, creative, and career-ready individuals.”

Devyani Jaipuria Devyani Jaipuria, Pro Vice-Chairperson of DPS Gurgaon, DPS Jaipur, and DPS International, Chairperson of Dharav High School, and Director of Healthcare & CSR (Under RJ Corp)

“As we approach the Union Budget 2025, the education sector stands at a defining moment, with hopes for substantial budgetary allocations. These investments are vital to meet the evolving needs of students, educators, and the broader educational landscape. I firmly believe that education is the bedrock of a nation’s progress, and this budget presents an invaluable opportunity to build an education system that is both world-class and inclusive. To secure the future of our nation, we must focus not just on academic excellence but also on fostering the holistic development of every child. This entails addressing critical infrastructure challenges, enhancing teacher training, and integrating modern technology to create dynamic, inclusive learning environments. By removing regulatory barriers to investment and fostering international collaborations, we can build a school ecosystem that competes globally, while empowering students with the skills, resilience, and values they need to thrive in an ever-evolving world. A key focus must be the increased investment in STEM-based research and skill-oriented programs, such as micro-credential courses. As demand for specialized skills grows, it is crucial to invest in infrastructure and comprehensive training initiatives that equip students with the technical expertise required for success in a digital-first world. Prioritizing these areas will lay the foundation for a future where our children emerge as innovators, problem-solvers, and leaders, ready to navigate and lead in a rapidly changing global economy. The time to act is now – let’s position education as the transformative force that will shape the future of India.”

Rohit taneja Rohit Taneja, Founder & CEO, Decentro

“As we approach the Union Budget 2025, there is immense potential to strengthen India’s fintech ecosystem by fostering innovation, compliance, and financial inclusion. India’s Digital Public Infrastructure, particularly the India Stack, has been instrumental in bridging gaps between urban and rural sectors. Expanding its capabilities in 2025—through tools like DigiLocker and ULI (Unified Lending Interface)—can unlock growth for underserved regions and drive innovation at scale. In the UPI for B2B space, we see a massive opportunity to transform how businesses manage vendor payments, recurring transactions, and supplier settlements. Policies encouraging UPI Autopay adoption, higher transaction limits, and tax benefits for digital payments will accelerate digitization in sectors like SaaS, logistics, and retail. For cross-border payments, initiatives like Project Nexus can enable faster, cost-efficient transactions, while simplified forex regulations and support for multi-currency settlements will position India as a global leader in payment infrastructure. With compliance and data protection taking center stage, the budget should incentivize AI-driven solutions to streamline regulatory processes, enhance fraud detection, and foster trust. The Data Protection Bill presents an opportunity to enable secure innovation while ensuring transparency in digital transactions.”

Chairman NIU Dr. Devesh Kumar Singh, Chairman of Noida International University

“As the union budget 2025 approaches, the government should allocate a significant budget for improving infrastructure and learning practices to close the current gaps in the educational sector. The government’s measures need to encourage students to enroll in higher education by lowering loan interest rates and allowing them longer due dates to relieve financial stress from students and families. Also, there is a need to add AI as a necessary learning model or subject in every college since industry has shifted dramatically in the last few years making AI a necessity in mostly all sectors. This will help India to become a global knowledge hub in a few years. At last, the budget allocation must be more aligned towards student loans and funding the fee for students for their skill development. The grants for National Education Policy (NEP) must focus on the implementation of multidisciplinary institutions with flexibility. Also, the government must allocate some more funds to research and development (R&D), encouraging partnerships between businesses and universities. To provide creative solutions to the education sector, public-private partnerships (PPPs) ought to be promoted. Working together with commercial organizations can make it easier to share technology, resources, and knowledge, improving the nation's overall educational quality.”

Dr. Dhruv Galgotia, CEO, Galgotias University

“Education is that crucial fulcrum which will further our Prime Minister’s vision of Viksit Bharat 2047. Some of the anticipated policies include education for girls and women, equal access and opportunities, and the discussion around technological interventions. Current data indicates women participation in India Inc at 36 percent. A major anticipation is nourishment for entrepreneurs, and ways to leverage Artifical Intelligence. In the education domain, countries such as Singapore and US have already commenced their AI journeys. Budget discussions could be an avenue to discuss policies on how to improve investments in the sector. Additionally, initiatives such as facilitation of global learning experiences, integration of sports, other co-curricular activities, and overall development of students should also be looked into.”

Saahil Goel, MD & CEO, Shiprocket

“As the Union Budget 2025 approaches, Indian MSMEs are anticipating reforms and incentives to bolster their growth and global competitiveness. Key expectations include increased access to affordable credit through enhanced schemes and reduced compliance burdens to streamline operations. MSMEs are seeking further digitization support to integrate technology and e-commerce, along with tax relief measures such as increased turnover limits for GST exemptions. Strengthened export incentives and skill development programs are also to help MSMEs penetrate international markets and address workforce challenges. With focused measures, the budget is expected to create a conducive ecosystem for MSMEs to thrive and sustain their role in India’s economic trajectory.”

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