Divyesh Savaliya, Chairman & MD, Onix Renewable Limited
"The Union Budget 2025 has set the stage for the self-reliance-led growth in the country's renewable energy sector in line with the goal to achieve 500 GW of non-fossil fuel energy by 2030. With a strong emphasis on domestic value addition, the government's focus on solar PV cells, EV batteries, motors, and controllers will significantly reduce reliance on imports and foster self-sufficiency in critical clean technologies. The introduction of the National Manufacturing Mission to support domestic production of EV batteries and solar panels is a strategic move that will not only enhance India's manufacturing capabilities but also drive cost efficiencies, supply chain resilience, and global competitiveness.
By encouraging backward integration and technology-driven advancements, these measures will catalyze innovation, attract investments, and create a robust ecosystem for clean tech manufacturing. As India moves towards its net-zero goals, such initiatives will play a crucial role in accelerating renewable energy adoption, ensuring energy security and diversifying the renewable energy portfolio."
"Overall, this is an inclusive budget focused on empowering those who need it most. The new tax regime, with no income tax up to ₹12.75 lakh, is a much-needed reform, fueling economic growth by empowering the salaried class—our most productive taxpayers. From a tech perspective, the Union Budget 2025 reinforces India's commitment to its AI and startup ecosystem, recognizing their vital role in innovation, job creation, and economic growth.
The ₹500 crore allocation for AI centers and the ₹10,000 crore startup corpus are significant steps. The proposed deep tech fund of funds, alongside the existing ₹10,000 crore fund of funds, holds immense potential, and we look forward to clarity on access mechanisms for startups. Extending the period of incorporation for startups to five years is a welcome move, as is the proposed scheme for first-time women entrepreneurs, offering loans up to ₹2 crore. Empowering young minds through Atal Tinkering Labs and supporting startups/SMEs with AI sandboxes are also positive moves. Subsidies for early-stage robotics and customer experience startups further highlight a forward-thinking approach. Leveraging the 10,000 GPUs under the India AI mission will drive AI adoption and research. The introduction of 10,000 research fellowships under the PMRF at IITs and IISc is a boost for R&D. This budget democratizes AI innovation, promotes ethical frameworks, and supports R&D. These investments will drive economic and social progress. The extension of the 80-IAC tax benefit for startups for another five years and tax certainty for electronics manufacturing are also positive signals. Building on past progressive reforms, such as the abolition of angel tax, the startup community looks forward to continued support for scaling talent and infrastructure, especially in emerging technologies and manufacturing—a sector requiring focused policy interventions to reach its full potential and a larger contribution to GDP by 2047—and the exemption of ESOP exercise from taxation, which would significantly empower employees and encourage talent retention.
This budget is a significant step in the right direction towards India positioning itself as a global leader, with AI, startups, and manufacturing at the forefront."--TEAM spokesperson.
Riddhi Chhabria Asrani, the Founder & CEO of All Stars Digital and Rixero.
"As the founder of All Stars Digital and Rixero, the recently announced Union Budget was a welcome relief to startups, women entrepreneurs and the digital marketing industry as they can now have greater access to funding and credit support to scale their businesses.
Credit Cards & Guaranteed Cover for MSEs & Startups
The introduction of customized credit cards for micro-enterprises with a ₹5 lakh limit is a significant boost for small businesses struggling with working capital. For startups, access to higher credit guarantees—now doubled from ₹10 crore to ₹20 crore—signals the government's commitment to supporting entrepreneurs. The reduction of guarantee fees for loans in 27 key sectors under Atmanirbhar Bharat will surely empower rising startups by easing their financial burden.
"For the digital marketing industry, these initiatives open doors to a thriving client base. Increased funding means more startups investing in branding, performance marketing, and AI-driven strategies to scale their businesses. The enhanced credit availability for well-run exporter MSMEs will also allow many Indian businesses to expand globally, requiring stronger content marketing, and targeted outreach. "
Scheme for first time Entrepreneurs
The ₹2 crore term loan scheme for first-time women, SC, and ST entrepreneurs will provide term loans up to Rs 2 crore during the next 5 years. I see this as a monumental step in decreasing the economic inequality between men and women.
"Being a female founder of a digital marketing agency, this initiative is a huge game-changer for women entrepreneurs looking to launch and scale their businesses. By reducing financial barriers, it can pave the way for more woman-owned businesses to enter the market which will drive the demand for strategic branding by digital marketing agencies."
Kshitij Jain , Co Founder of All Things People, a HR Tech Startup.
"As a young tech startup, we welcome the expansion of the credit guarantee scheme and increased limits for companies to be classified as MSMEs. We also welcome the increases in tax thresholds and exemption limits. However, as we continue to face significantly more complex compliance and tax requirements and processes than start-ups and tax payers in other countries, we will continue urging the Finance Minister to drive simplification and reduced scope for bureaucracy. We eagerly await the introduction of the new Income Tax bill next week."
Karan Aggarwal, Co-Founder & Chief Investment Officer at Elever, a wealthtech PMS and portfolio manager.
Budget 2025-26: Steering Through a Slowing Economy
Markets will likely welcome the fact that the government has refrained from altering LTCG/STCG taxes, introducing new populist schemes, or deviating from its fiscal discipline, with a better-than-expected fiscal deficit target of 4.4% for FY 2025-26.
The Downside: A Shift from Capex to Consumption
However, with the economy slowing and a strong fiscal position, government was expected to maintain its focus on elevated capex and manufacturing, while also adding private consumption to the mix. Instead, the budget indicates a shift in priorities. There was a surprising 8% downward revision of FY 2025 capex, with a lower-than-expected INR 11.2 lakh crore allocation for FY 2026. Additionally, the absence of new incentives or sops for export-oriented manufacturing is a significant negative for sectors such as PSUs, manufacturing, metals, and industrials—key drivers of growth over the last few years.
For now, the ambitious target of $1 trillion in manufacturing exports by 2028 appears to have been pushed back for at least a year, likely due to ongoing global trade challenges, tariff wars, and geopolitical risks.
Big Picture: A Cautious Approach Amid Global Uncertainty
On a broader scale, the budget reflects the government's concerns over the global geopolitical and geoeconomic risks expected to unfold in FY 2026. Alongside an anticipated RBI rate cut in the near future, the tax relief measures seem to be a strategy aimed at insulating the Indian economy from external shocks by increasing the share of private consumption in the growth equation. These steps are expected to provide much-needed support to corporate earnings in the near term.
That said, the projected rebound in GDP growth to the 7%-8% range may not materialize until FY 2026-27. The government appears to be positioning itself with substantial 'cash' reserves, ready to optimally manage any economic downturn in the coming quarters. As is often the case with holding cash, while short-term returns may be sacrificed, this strategy could pay off if a market crisis presents a buying opportunity.
Kalpana Ajayan Regional head South Asia, WWB:
"The Union Budget 25-26 will boost economic growth especially for women. Announcement of the new scheme that offers Rs 2 crore for first-time women entrepreneurs is a huge support by the government that will further promote rural entrepreneurship & gender equality in business.
Revamping PM Svanidhi with enhanced loans and UPI linkage will benefit scores of women to scale their micro-businesses. The Budget rightly identified MSMEs as a key engine for India's development. Through revised investment and turnover limits, MSMEs will be able to scale, particularly women's micro and small enterprises. Expansion of Mudra loans too is a step in the right direction, providing women with equitable access to empowering interventions. The work ahead should be on effective implementation and continuous evaluation of these initiatives to ensure they truly empower women, driving us closer to a prosperous, self-reliant, and inclusive India by 2047."
Nikhil Kurhe , Co-founder & CEO at Finarkein Analytics
"The introduction of the ₹5 lakh credit card for micro-enterprises and enhanced credit guarantee cover for MSMEs signals a strong push toward financial inclusion. With increased access to capital, fintech infrastructure providers have a unique opportunity to build smarter underwriting models and data-driven lending platforms that can drive responsible credit growth."
"The expansion of credit guarantee schemes and collateral-free loans for MSMEs is a welcome step. However, to truly scale lending in this sector, we need greater interoperability across financial ecosystems. Open Finance infrastructure can bridge this gap by enabling real-time credit assessment using alternative data sources."
"With the budget's push for digital credit scoring models like 'Grameen Credit Score,' the financial services industry must now focus on building more inclusive, AI-driven underwriting mechanisms that can assess creditworthiness beyond traditional bureau data, especially for undeserved MSMEs."
Gaps in MSME Lending and Financial Services
"While enhanced credit access is a step forward, the biggest challenge remains the effective distribution of these funds. Without seamless integrations between lenders, account aggregators, and digital platforms, MSMEs may still struggle to access timely credit. This is where the Account Aggregator framework can play a game-changing role."
"Raising the FDI limit for insurance from 74% to 100% is a positive move, but the real question is: how do we leverage this capital efficiently? The insurance industry must accelerate its adoption of embedded finance and open insurance APIs to reach India's underinsured segments more effectively. It is high time India builds a modern Insurance Bureau. "
"Despite the budget's focus on MSME growth, we still see a gap in ecosystem-level integrations. Policies should actively encourage regulated financial entities to collaborate with fintech startups, enabling more seamless credit flows via open banking and API-driven lending frameworks."
Pearl Agarwal, Founder and Managing Partner, Eximius Ventures
"Indian PE-VC ecosystem is still evolving and in nascent years. We can only boast a history of two decades as opposed to developed nations nurturing the industry for over 50 years. Today, only 13% of Indian domestic family office capital is in alternative assets as opposed to 50% in the US. Hence, while foreign capital and family offices warm up to the opportunities that the country has to offer, it is important that the government takes required steps to boost the startup ecosystem with institutional capital. It's gladdening to see the recent budget take a huge leap in that direction."
Ashish Kukreja, Founder and CEO, Homesfy and mymagnet.io
"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."
Samudragupta Talukdar, Founder and CEO, Relata
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.
Vikalp Sahni, Founder & CEO at Eka Care
The recent budget's focus on easing the tax burden for the middle class is a welcome move! More disposable income often translates to increased spending on discretionary items. With increased disposable income, we have a unique opportunity to shift the focus from reactive to preventative healthcare. People are more likely to invest in their long-term well-being when they have greater financial flexibility. Eka Care's platform empowers individuals to proactively monitor their health, track vital signs, and access personalized health insights. We believe this budget can be a catalyst for a healthier India, and we're here to support that transformation.
Mr. Ravindra Rai, Managing Director, and CEO of BOBCARD LIMITED:
"The Union Budget 2025 presents a forward-thinking approach for economic growth, especially the reforms in the tax slab up to ₹12 lakhs. This move will increase the disposable income of the middle class, expanding their spending capacity and stimulating demand across various sectors, which will support broader economic prosperity. Additionally, the government's focus on increasing women's participation in economic activities to 70% is an important step toward fostering gender equality in entrepreneurship. By empowering women entrepreneurs, the government is not only promoting financial inclusion but also closing the gender gap in the business world. This vision aligns with our commitment to democratizing credit, ensuring that women, as key contributors to the economy, have the access they need to grow and succeed in their ventures.
On top of this, the launch of a revamped KYC system will help streamline the customer onboarding process while reinforcing data security, contributing to a smoother and safer financial experience for all. Collectively, these measures have the potential to strengthen credit lending at all levels while equipping us with better fraud management tools, advancing the reimagined credit economy."
Mr. Dheeraj Arora, Managing Director & CEO, Hygienic Research Institute, Pvt. Ltd says, "The Union Budget 2025 presents a clear roadmap for revival and growth in the FMCG sector. With income tax relief aimed at enhancing disposable income, we anticipate a surge in consumption, which will directly accelerate demand. The government's strategic initiatives, including reduced tariffs and easier credit access, are designed to streamline supply chains and lower input costs. Additionally, customs simplifications and the National Manufacturing Mission will boost domestic production, fostering innovation and competitiveness. These measures lay a strong foundation for innovation and competitiveness, paving the way for sustained growth."
Mr. Satyen Momaya, CEO, Celio India says, "Prima facie the Union Budget 2025-2026 sets the stage for a stronger resilient economy , the current biggest challenge is the slowdown of the pvt consumption, the tax change for the salaried class could positively benefit the middle class to some extent also the budget outlines various initiatives to make tax compliance easier for businesses. The thrust on infrastructure & green growth and sustainability thrust outlined in the budget could be very positive specially for the long-term growth of the country."
Mrinal Kumar, Partner, Shardul Amarchand Mangaldas & Co
GCCs are already contributing substantially to the growth of the real estate sector. The focus on setting up GCCs in the budget in tier 2 cities, coupled with availability of land at cheaper rates in such cities, will result in creation of infrastructure and ultimately, growth of employment opportunities in such cities.
