This is the kind of budget that fuels ambition: Industry honchos hail inclusive growth

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, lays down the roadmap for economic growth, infrastructure development, digital transformation, and social welfare. With a strong focus on Viksit Bharat, the budget aims to enhance private sector investments, strengthen agriculture, boost MSMEs, and promote innovation.

As India positions itself on the path to becoming a "Viksit Bharat," the budget's key focus areas, including support for startups, MSMEs, clean energy, and the gig economy, have captured significant attention.

India’s industry honchos are upbeat about what is being called a “growth-oriented budget” and reflect on the key highlights of the Budget...

Jagrut Kotecha, Chief Executive Officer, PepsiCo India & South Asia:

“We welcome the Union Budget 2025 focused on an income-led economic revival that will provide relief to the middle-income group through policies designed to infuse liquidity into the economy. The measures introduced should alleviate the burden of inflation and rising living costs, bringing much-needed relief to consumers and in turn help in stimulating overall consumption.

PepsiCo India remains committed to supporting India’s journey to becoming the world’s third-largest economy by 2030.”

Jude Gomes, MD & CEO, Ageas Federal Life Insurance:

“Ageas Federal Life Insurance has already experienced the positive impact of enhanced foreign investment, having been one of the first Indian insurers to embrace the 74% FDI limit. This move has driven innovation, operational efficiency, and customer-centric solutions within the industry. The government's decision to increase the FDI limit in the insurance sector to 100% is a landmark reform that will significantly strengthen the industry by attracting fresh capital, global expertise, and cutting-edge innovation. This move aligns seamlessly with the vision of ‘Insurance for All’ by 2047, as it will enhance financial inclusion and drive deeper insurance penetration across both urban and rural India. Additionally, it will provide insurers with greater financial flexibility to expand their reach, address the evolving needs of policyholders, and contribute to the country’s overall economic growth.

Furthermore, the revamped Central KYC Registry is a welcome step toward strengthening data security and ensuring a seamless, trusted experience for customers. By prioritizing transparency and ease of doing business, the government is laying a strong foundation for a more resilient and digitally empowered financial ecosystem. At Ageas Federal Life Insurance, we wholeheartedly welcome these progressive reforms and look forward to leveraging these opportunities to expand our reach and further our mission of securing a fearless future for individuals across India.”

Venkatraman Venkateswaran, Group President & Chief Financial Officer at Federal Bank:

“It is a growth-oriented budget, focusing on our journey towards Viksit Bharat. Labour-intensive sectors like agriculture, footwear, leather, toys, and food processing, which are largely MSME sectors, have received a boost. This budget complements our focus on the MSME sector and presents an opportunity to further strengthen our relationship with customers and finance their growth. The personal income tax rate reduction also provides a boost from the consumption side.

The fiscal consolidation roadmap outlined last year stays the course, and government capex spending will provide impetus for infrastructure and job creation.

In summary, it is a balanced budget with a boost to consumption.”

Rakshit Hargave, CEO, Birla Opus Paints:

“The 2025 Budget announced by the Government of India is a bold and visionary step towards a more prosperous and inclusive Bharat. The focus on infrastructure development, domestic consumption, and production, as well as digital transformation, is commendable. Its emphasis on the manufacturing sector, through measures designed to further enhance ease of doing business, will benefit multiple stakeholders.

The enhanced National Manufacturing Mission will not only boost domestic production but also position India as a global manufacturing hub. This is also a significant step towards Atmanirbhar Bharat, helping us create numerous job opportunities and setting the stage for a vibrant and competitive manufacturing sector in India.

The budget also offers significant tax relief through rebates, which is anticipated to boost domestic consumption and invigorate the retail sector. This increased disposable income should allow consumers to spend more and improve their quality of life.

Another key decision by the Government is the increased focus on Public-Private Partnerships in infrastructure development as well as the Special Window for Affordable and Mid-Income Housing (SWAMIH) and the decision to develop the top 50 tourist destinations, aiming to bridge the gap between rural and urban, providing improved facilities and connectivity to all citizens. I am confident that this budget will pave the way for a brighter future for India.”

Aditya Agarwal, Director, Emami Group:

“The overall budget is positive, and will bring in more money in the hands of people to spend.

The government has also been proactive in addressing pollution and has taken significant steps to promote green energy. Introducing a mandate for blending biofuel with diesel could further enhance efforts toward pollution reduction.

Additionally, the reduction in duty differences between refined and crude edible oils and zero duty imports under SAFTA has led to increased imports of refined oils. This has led to disparity and higher imports of refined oil and lower capacity utilisation of edible oil refinery in India.

To ensure the sustainability of the domestic edible oil industry, the duty differential between crude and refined should be increased. Zero duty imports under Safta also needs to be stopped.”

Harsha Vardhan Agarwal, Vice Chairman & MD, Emami Ltd:

“This is a well-structured and progressive budget, aligned with the Government’s vision of a Viksit Bharat. It maintains a strong focus on inclusive growth, covering key sectors such as agriculture, farming, women’s empowerment, and manufacturing. The continued emphasis on capital expenditure is commendable.  Further, the Government's efforts to strengthen the regulatory framework, streamline compliances, etc., to enhance the ‘Ease of Doing Business’ are praiseworthy.

A major highlight of this budget is the significant announcement on personal income tax, which is a welcome move. By putting more money in the hands of consumers, this step is expected to boost consumption and drive an increase in discretionary spending, ultimately strengthening overall economic momentum.”

Kedar Lele, Managing Director, Castrol India:

“In the Union Budget 2025-26 presented by Union Finance Minister Nirmala Sitharaman on February 1, we commend the government's 10-point agenda aimed at fostering transformative reforms. These measures focus on ensuring an inclusive growth trajectory and driving employment-led development, aligning with the broader vision of 'Viksit Bharat' for the nation's progress and development.

The National Manufacturing Mission, outlined in the Union Budget 2025-26, is a key step in strengthening India's clean tech manufacturing ecosystem. By offering tax exemptions on lithium battery production and 35 additional raw materials, the government aims to boost domestic EV battery manufacturing, reducing costs and driving demand for electric vehicles. This presents a valuable opportunity for us to expand our cutting-edge EV portfolio of EV fluids, coolants, transmission fluids, and greases, under Castrol ON. To further accelerate EV growth, we are enhancing R&D initiatives, advancing next-gen EV products and focusing on strengthening OEM partnerships.

Our commitment to a future-ready workforce for the EV segment, aligns well with government agenda for skill development. We have trained over 1,000 mechanics through our EV Readiness Program and upskilled auto mechanics, nationwide.

With tax exemptions making income up to Rs 12 lakh tax free is expected to increase consumption and boost market demand across sectors, including mobility sector and ancillaries like lubricants.”

Achint Setia, CEO, Snapdeal:

“This budget is welcome news for crores of Indians in the middle and lower income brackets. By leaving more money in their hands and encouraging savings and investments, the budget is likely to add a strong push to retail consumption and economic growth.”

Siddharth Devnani, Co-Founder and Director, SoCheers:

“Budget 2025’s focus on digital transformation through initiatives like the ₹20,000 crore R&D spending, DeepTech Fund of Funds, and investment in AI excellence centers signals India’s commitment to technological advancement.

The establishment of Atal Tinkering Labs and broadband connectivity in government schools will create a future-ready digital workforce.

Combined with the significant tax relief that increases disposable income across the middle class, these initiatives are likely to accelerate digital adoption and consumer spending.

For the advertising and marketing industry, this presents a unique opportunity – we’re looking at a more digitally-connected consumer base with enhanced purchasing power.”

Rajan Navani, Chairman of CII India @100 Council, Co-Chairman of CII National Committee on Media & Entertainment, and Founder & CEO of Jetsynthesys:

“The Union Budget 2025 lays down a visionary roadmap for a Viksit Bharat. It not only sets an ambitious goal for India to become the third largest economy in the world—growing at 7-8% year on year for the next 25 years, but also underscores the necessity of an inclusive, multi-stakeholder agenda with a trust based regulatory framework. This is particularly encouraging for the corporate sector, and for institutions like CII, as we recognize the urgent need to create a robust, transparent, and forward-thinking regulatory framework that fosters trust and drives growth.

What truly resonated with me was the significant investment in our youth, highlighted by the establishment of national skilling centers, alongside strategic investments in AI for education and a ₹10,000 crore fund of funds for deep tech. These initiatives are not just about technological advancement—they are about nurturing a generation that is both highly productive and prepared to lead in the digital economy. As India shifts from serving the world to leading it, the combined efforts of the government, private sector, and other stakeholders will be crucial in harnessing the potential of new frontier technologies, creator economies, and innovative products. This budget sets the direction, and now it is up to us to collectively accelerate India’s journey towards a dynamic, future-ready economy.”

Viral Kagrana, Finance Head, NeoNiche Integrated Solutions:

“A long waiting booster finally comes to the Middle Class of the Indian Population along with focusing on supporting long term sustainable economic growth driven by Agriculture, MSME, Investment and Exports.

By exempting incomes from Rs 7 lakh to Rs 12 lakh, putting back money in the pocket of the people there by boosting their disposable income and overall consumption of the economy.

Such a move will drive the engine for the coming years and resolve long awaiting benefits to the Middle Class Indian Citizen.

Along with the Fiscal deficit goal to take the waves of economic global uncertainty and instabilities in parts of the world, it was great to see a boost in labour intensive sectors such as food processors, textile, leather and toys that are positioned to boost employment and skill development.

Also, the government continues its commitment to support MSME growth in the economy by focusing on ease of doing business whereas giving business benefits of government schemes and access to credit there by setting up foundation for entrepreneurial culture in the ecosystem.”

Pratik Singla, CEO, Goldmine Advertising:

“The budget makes it clear where India sees itself—still doubling down on manufacturing, still trying to chase the China model, instead of carving out our own identity in new, emerging sectors of the future. On one side, you have Trump pushing AI dominance, tech supremacy, and the world’s biggest attention economy in the same room. And here? Media, entertainment, creativity, advertising, AI (beyond education)—completely absent from the conversation. Budgets don’t just reflect promises; they reveal real priorities. And yet again, human innovation capital—the most underrated asset of our country—has been sidelined.”

Vikram Agarwal, Managing Director, Cornitos:

“The budget strategically focuses on strengthening the consumer spending and purchasing power. The proposed increase in income tax exemption slab will boost investments and consumption, which will have a positive impact on the FMCG and retail sectors. In addition, considering the growing awareness of healthier food options and the increase in the demand for nutritious food, the government’s initiative towards improving the accessibility and affordability of these essential food items in itself is a remarkable move. These significant steps along with the investments in rural infrastructure and health sectors will accelerate the overall growth of the economy.”

Aadit Palicha, Co-Founder and CEO, Zepto:

“Clear Vision for Economic Growth: The Union Budget reflects a consistent push towards guiding India’s economy with a free enterprise mindset, promoting growth and sustainability.

Support for Gig Workers: The introduction of social security measures for gig workers is a key highlight, acknowledging their valuable contribution to the economy. It’s a much-needed upliftment and a step towards recognising gig workers' contribution in India’s economy and youth employment.

Regional Expansion:  As consumers increasingly look for better pricing, value, and selection, government’s focus on elevating the infrastructure in emerging cities like Kota and Nagpur is a great move.

Optimism for Growth: As a consumer tech company, we are excited about the opportunity to add buoyancy to the economy, especially as demand increases across emerging markets.

Talent Pool and India’s Story: India’s growing talent pool is something we’re deeply excited about. The push towards entrepreneurship and the internet ecosystem with tech companies like ours will build the foundation for the country’s growth story, and we are proud to be part of that momentum.”

Puneet Vidyarthi, President RMAI & Head marketing - APAC & India region, CASE Construction Equipment India Ltd

“The Union Budget places a strong emphasis on agricultural growth and rural prosperity, reinforcing the foundation of 'Bharat.' The modified UDAN scheme, aimed at connecting 120 new destinations across India, is a game-changer, paving the way for progress by enabling better connectivity, fostering reverse migration, and generating employment opportunities in Tier 2 and Tier 3 cities.

Additionally, allowing states an additional borrowing limit of 0.5% of GSDP opens the door for more regional-level reforms and development. The budget strikes a unique balance between urban and rural growth, green initiatives, infrastructure expansion, innovation, and social welfare. In essence, this budget empowers rural India, ensuring inclusive and sustainable progress for the nation.”

Shailesh Goyal, Founder, Simulations Public Affairs Management Services:

“In her budget speech, Finance Minister Nirmala Sitharaman said, “Our government is committed to keeping an ear to the ground and a finger on the pulse.” This certainly seems to be the case with the sharp increase in income tax exemption limit from Rs. 7 lakh to Rs. 12 lakh. While India is the fastest-growing among all major economies, as the FM pointed out, a majority of Indians are reeling under the impact of falling income levels due to average economic growth and high inflation. The enhanced tax exemption limit comes as a significant relief to the middle class, leaving more money in their hands, which is expected to drive spending across sectors such as retail, electronics, automobiles, etc.

The government has given a lot of attention to agriculture with schemes for increasing agricultural output, crop diversification, enhanced storage facilities, and more. Along with the National Mission for Edible Oilseed for achieving self-reliance in edible oils, the government is set to launch a “Mission for Atmanirbharta in Pulses” and a comprehensive programme for vegetables & fruits.

The MSMEs have also received their share of docs with revision in classification criteria and the enhancement of credit availability with guarantee cover, along with the National Manufacturing Mission to give a boost to Make in India.

Tourism, a sector with immense growth potential, is also set to receive a significant boost because of the development of the top 50 tourist destinations, improved connectivity through UDAN and other schemes, and streamlining e-visa facilities.

The budget has placed a strong emphasis on education, research and skilling. Broadband connectivity to all schools, a greater focus on innovation and cutting-edge technology, and skill development schemes are steps that will go a long way in preparing a future-ready workforce.

Overall, the budget lays a solid foundation for sustainable growth, with a balanced approach between fiscal prudence and economic stimulus, ensuring long-term benefits.”

Sumon K Chakrabarti, Co-Founder & CEO, Buffalo Soldiers:

“I am so excited about the Union Budget 2025 - it’s not just a WIN, but is a monumental leap forward for India's economic landscape. The substantial increase in the tax-free income threshold to ₹1.2 million empowers the middle class, enhancing their spending power and driving consumption. As a bootstrapped startup entrepreneur, I can directly think of this benefitting so many of the youngsters who we recruit. And this is putting real money back where it belongs — in people’s pockets. And what happens because of that? More spending, more investments, more dreams getting the green light. And let’s not forget the tax simplifications – less paperwork, less jargon, and more time for businesses to actually do business.

Finally, a budget that understands that growth isn’t just about big numbers, but about real people.

And for startups, a ₹100 billion Fund of Funds is not just a push, that’s a catapult for innovation. More capital means more risks taken, more disruptive ideas.

This is the kind of budget that fuels ambition.

For MSMEs, this budget is a solid win - exactly what small businesses needed to scale without getting stuck in a financial chokehold.”

Mohit Malhotra CEO Dabur India Ltd

Finance Minister Nirmala Sitharaman’s Union Budget 2025-26 marks a pivotal step towards enhancing the financial well-being and quality of life for millions of middle-class families. The substantial tax relief measures, particularly making income up to ₹12 lakh tax-free, will provide essential financial respite to middle-class families, increasing their disposable income, encouraging spending, and promoting overall economic growth. This focus on the middle class addresses a long-standing demand and is a positive step towards a more inclusive and robust economy.

I am optimistic that this move will help stem the slowdown in urban consumption and bring it back on the growth track. Additionally, the budget's emphasis on the agricultural sector, with enhanced support for farmers through increased Kisan Credit Card limits and targeted financial incentives, is commendable. These measures will not only strengthen the agricultural backbone of our country but also ensure food security and sustainable growth in the sector.

The government’s continued focus on rural infrastructure development is another step in the right direction, as it would further boost consumer demand in the hinterland. Providing farmers access to global best practices marks a pivotal step towards modernizing Indian agriculture, promising to enhance yields and farm incomes.

Overall, I feel the Union Budget 2025-26 paves a transformative path towards 'Viksit Bharat,' striking a harmonious balance between economic growth, social welfare, and structural reforms.