Industry Voices: Reaction to the Union Budget 2025 and Its Impact on Sectors

FM Nirmala Sitharaman

Union Budget 2025: Industry Experts Respond to Key Announcements

Finance Minister Nirmala Sitharaman presented the Union Budget 2025. Key highlights included credit enhancement for MSMEs and startups, the establishment of deep tech funds, and income tax relief, among others.

The Union Budget 2025 has sparked diverse reactions from industry leaders, with many welcoming its focus on MSMEs, startups, and technological advancements. While some applaud the proposed credit enhancements and tax relief, others stress the need for more targeted sectoral support.

This budget has been viewed as a balancing act between stimulating growth and ensuring long-term economic stability.

Industry leaders from various sectors have shared their reactions to the Union Budget 2025-26. Here are some of the key takeaways.

The Centre’s move to revise the tax slabs is expected to stimulate middle class spending, boosting disposable income and fuelling socio-economic growth.

By promoting private consumption, the budget announcements will support the growth of the rural and urban economies.

The budget creates substantial development prospects for the FMCG sector by laying a solid foundation for an economy that is more driven by consumption – Pramesh Goyal, Managing Director, Goyal Salt (FMCG Sector).

“This budget is all about consumption theme. Government of India’s increase in tax exemption limit to Rs. 12 lakhs would put more money in the hands of people and which should increase the pace of growth. More than one crore people are benefiting from this bold step of Government of India which is much awaited by middle class of this country.” – Shaju Thomas, Chairman & MD, Popees Baby Care Products Pvt. Ltd. (Retail Sector)

“The 10% increase in the budget for Defence to Rs 6.81 lakh crore is indeed a major boost by the Government of India. The visionary thought process of the Government is well aligned on acquiring new defence systems in the face of security challenges. Government’s greater focus on purchasing more weapons, military hardware, aircrafts and warships and allocating lion share of Rs. 1.8 lakh crore in the total defence budget is very encouraging for MSME and corporates.” – Rajendra K Chodankar, Chairman, RRP S4E Innovations Ltd (Defence Sector)

“The allocation of the Union Budget 2025 reveals an ambitious step to transform Indian real estate and empower homebuyers. The nation is on a positive growth trajectory due to the Union Government’s emphasis on MSMEs, infrastructure, and tax changes.

This ₹1.5 lakh crore interest-free 50-year loan to states for their capital expenditures and the creation of a ₹1 lakh crore urban challenge fund are masterstrokes. Such infrastructure development activities will spur urbanisation, enhance connectivity, and transform cities into growth hubs while improving the livability score.

To ensure the completion of delayed housing projects, an allocation of ₹15,000 crore under SWAMIH Fund-2 should suffice. The innovative blended financing approach is anticipated to complete 1 lakh housing units, which would, in turn, ease housing pressures on homebuyers who are still paying both their EMIs and rents. Completing the projects will allow the fund managers to improve their image while reinstating investor confidence.

Personal tax reforms will boost the purchasing power of the middle class. Consequently, demand in the real estate market will increase, making owning a home more feasible. 

Of particular interest is a new line of credit cards being launched for Udyam-registered micro-enterprises.

The Udayam cards, with a limit of ₹5 lakh, are expected to be widely issued, with a deployment goal of ten lakh units in the first year. Further, the new classification norms around MSMEs are self-explanatory, enabling a larger number of businesses and startups to grow in the sector.

With these pro-growth measures, the real estate and infrastructure sectors are likely to undergo massive growth. As the budget supports the government’s enduring belief in the economy’s resilience, the timing is ripe for real estate investments and stakeholders’ involvement to take advantage of new developments.” Ashish Kukreja, Founder and CEO, Homesfy and mymagnet.io

Budget 2025 shows remarkable foresight in addressing both immediate housing concerns and future market dynamics. The expansion of SWAMIH with a ₹15,000 crore fund speaks directly to thousands of middle-class families who’ve been caught in the challenging cycle of paying EMIs while living on rent.

But what’s truly encouraging is how this budget looks at the bigger picture – from boosting home loan affordability through tax exemptions to embracing digital transformation in real estate.

I see this as more than just policy – it’s about transforming lives. With increased infrastructure spending of ₹11.21 trillion and strong support for proptech innovation, we’re not just building homes; we’re building a more accessible, transparent, and efficient real estate ecosystem.

The government’s commitment to both affordable housing and digital advancement aligns perfectly with our vision at Relata of making property discovery and purchases seamless for every Indian family. – Samudragupta Talukdar, Founder and CEO, Relata

“Budget 2025 presents a promising roadmap for India’s economic and technological future, emphasizing research, skilling, and entrepreneurship. The ₹20,000 crore allocation for private-sector-driven R&D, along with the Deep Tech Fund of Funds, signals strong support for innovation.

The five National Centres of Excellence for skilling are a step toward aligning education with industry needs. However, challenges lie in execution—past initiatives have faced delays and inefficiencies.

The effectiveness of AI-driven education and startup funding will depend on regulatory clarity and seamless disbursement. While the budget sets ambitious goals, its success will hinge on how well these policies translate into real-world impact.” Ram Ramalingam, Founder & CMO , GeniusMentor

Budget 2025 demonstrates a clear commitment to India’s future growth, with a strong emphasis on technological advancement, education, and entrepreneurship. The expansion of IITs and the creation of a Centre of Excellence in AI for education reflect a vision aimed at equipping students with cutting-edge skills.

The push for broadband connectivity in rural schools and PHCs enhances digital inclusivity, while the Fund of Funds for startups, alongside financial support for first-time entrepreneurs from marginalized communities, promotes inclusive economic growth.

A key highlight is the introduction of a startup credit ecosystem, particularly beneficial for women and entrepreneurs from SC and backward communities.

The ₹2 crore loan initiative for women entrepreneurs promises to encourage new ventures and diversify the education sector.

While these initiatives hold great potential, their success hinges on efficient fund allocation and effective execution, making this budget a potential catalyst for India’s transformation into a global knowledge and innovation hub.” Mridu Andotra, Founder & CEO, GeniusMentor

Government’s investment into drone component and subsystem development is a  National  need of the hour as recent findings by the Army has revealed rampant use of Chinese origin components and subsystems including critical electronic systems in drones supplied to them which is a direct threat to  National Security .

The government should invest from its Research , Development & Innovation ( RD&I ) fund of Rs 20,000 crores  as well the proposed Deep Tech funding initiatives announced in the Budget to mitigate the National Security threat as well as unlocking huge global potential as a China +1 source for drones and drone components .

It  should recognise this as an opportunity to evolve into a Global Drone hub of secure non Chinese drones and components by designating it as a key focus area for deployment of these funds under these initiatives in the form of Design Linked Incentives ( DLI ) coupled with a PLI for Indian OEM’s using only Indian Designed Developed and Manufactured Drones ( IDDM ) .

Investing into building this component level ecosystem for drones will not only resolve the immediate threat to National Security but will also facilitate shifting these elements of the global supply chain from their  current Chinese origins to Indian manufacturing ( a key focus area )  especially  given India’s reputation as a trusted , ethical technology partner as opposed to the growing global trust deficit on the part of China .

This becomes all the more important because as a dual use technology where the same drone can be used interchangeably by Defence , Civilian and non state operators increases the direct risk to National Security exponentially .

Additionally, investment at these foundational levels of sunrise technologies will unlock potential for their adoption in various other sectors like automobiles , robotics and other unmanned use cases. 

As these sunrise Technologies evolve, investments in RD&I mentioned above will dovetail perfectly into the proposed Deep Tech fund and unlock global scale opportunities for startups and SMEs involved in these  sunrise sectors resulting in manifold ROI for the government in multiple ways.” Sai Pattabiram, Founder & MD, Zuppa Geo Navigation Technologies Pvt Ltd

While there are no direct incentives for Handlooms, but the budget does aim at higher disposable income and will help consumption in the economy. 

The budget 2025 is expected to have a positive impact on the textile industry. The allocation for the Ministry of Textiles is likely to increase by 15% to ₹5,080 crore, with a focus on promoting domestic manufacturing and exports.

Additionally, the government may reduce import duties on some raw materiials and textile machinery. Also, some important steps to encourage MSME by extending loans and limits may support capacity building. 

While no specific measure to support Handlooms, the second largest employer in the country, but it will benefit textiles as a whole. –  Nishant Malhotra, Founder & CEO of WeaverStory.

The government’s focus on revitalizing the rural economy through skilling, technology, and investment is a strong step toward unlocking India’s agricultural potential. For the dairy sector, this presents an opportunity to enhance productivity, quality, and global competitiveness.

The expansion of the Kisan Credit Card (KCC) loan limit from ₹23,000 to ₹85,000 for dairy farmers is particularly encouraging. Access to higher credit will enable farmers to invest in better cattle nutrition, advanced milking technology, and cold-chain infrastructure—key factors in improving milk yield and quality. This is a crucial enabler for modernizing dairy operations at the grassroots level.

At mooMark (a subsidiary of Stellapps), we believe that technology-driven interventions, such as digital traceability and accountable supply chains, are essential to making India’s dairy sector globally competitive.

The government’s plan to introduce global best practices in 100 agricultural districts aligns well with our vision of a data-driven, efficient, and farmer-empowered dairy ecosystem.

As we scale our presence in Southeast Asia and the Middle East, we see this as a pivotal moment for India to establish itself as a key player in the global dairy market.

By combining technology with policy support, the dairy industry can move toward self-sufficiency, improved farmer incomes, and higher-quality dairy products for both domestic and international markets.” Ranjith Mukundan, CEO & co-founder Stellapps Technologies.

Industry leaders remain hopeful yet cautious, urging the government to ensure effective implementation of these proposals. The true impact will depend on how well the measures are executed across sectors

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