Budget 2025 Will it deliver?

The Finance Minister, Nirmala Sitharaman, recently presented the Union Budget 2025-26 focused on the theme Sabka Vikas, outlining balanced growth of all regions and emphasising the importance of investment in people, economy and innovation as a big push towards the Viksit Bharat goal. Will the budget deliver? Corporates from various sectors give their thumbs up-down views on the 2025 Union Budget

Hopes for the energy sector

-DEVENDRA GOEL,
Managing Director, Lumino Industries Limited

Budget 2025 sets a promising trajectory for the energy sector, reinforcing India’s commitment to sustainability, innovation and energy security. The continued focus on renewable energy, grid modernisation and incentivising domestic manufacturing of critical components will drive growth and resilience. As an engineering, procurement and construction (EPC) and product company, we see immense opportunities in accelerating project execution, adopting digitalisation, and contributing to India’s clean energy future. A balanced approach between policy support and private sector participation will be key to achieving our ambitious energy transition goals.

Defence sector gets a major boost

-RAJENDRA K CHODANKAR,
Chairman, RRP S4E Innovations Ltd.

The 10% increase in the budget for the defence sector to INR 6.81 lakh crore is a major boost. The Government’s vision is well aligned to acquiring new defence systems. The greater focus on purchasing more weapons, military hardware, aircrafts and warships and allocating a lion’s share of INR 1.8 lakh crore, in the total defence budget, is very encouraging for MSMEs and corporates. The budget has proposed a significant increase in allocation to the Ministry of Electronics and Information Technology (MEITy) by 48% to INR 26,000 crore which includes subsidies for semiconductor also. We are very confident that Government of India will announce Semiconductor Mission 2.0, which will boost the sector and put India on the world map. I am confident that in the changing global dynamics, Indian semiconductor players are going to play a major role and seek the unstinted support by the Government of India and State of Maharashtra in achieving this goal.

Capacity utilisation for the logistics industry

-SURESH KUMAR R,
Managing Director, Allcargo Terminals Ltd.

The current budget will strengthen ease of doing business and relaxing of regulatory reforms will further improve the investments, boosting private investments in all sectors including logistics.

Specifically, the announcement of an INR 25,000 crore Maritime Development Fund for long term financing in the maritime industry, with 49% government contribution and the balance fund to be mobilised from ports and the private sector, is a welcome step in promoting competition and distributed support. Making PM Gati Shakti data accessible to private players will drive superior project planning and synergy execution. Fostering an ecosystem for new-age innovation through AI and deep tech, the budget will most likely usher the next phase of efficiency, resilience and capacity utilisation for the logistics industry.

Focus on consumption and job creation

-M P AHAMMED,
Chairman, Malabar Group

The budget reflects the government’s continued focus on revitalising consumption, strengthening domestic manufacturing, and fostering job creation. Therefore, the budget has rightly focused on offering fiscal impulse to boost consumption. For the retail and jewellery sector, a rise in consumption directly translates into stronger demand, fuelling expansion and employment generation. 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.

Boosting local coffee production

-PRAVEEN JAIPURIAR,
CEO, CCL Products (India) Ltd.

The Union Budget FY2025-2026 introduced a strong demand stimulus. The increased spending power is expected to benefit premium FMCG segments, including specialty coffee, strengthening the out-of-home experiences in quick-service restaurants and cafés. The government’s focus on the Agri programme initiatives to support 1.7 crore farmers, and the plan to cover 100 districts with low productivity is a welcome move. These measures have the potential to improve coffee cultivation in key regions, enhancing both yield and farmer incomes, boosting local coffee production. However, while domestic consumption is set to rise, the budget misses an opportunity to enhance coffee exports. We need measures to support global competitiveness, including incentives for value-added coffee exports and easing trade barriers that would have provided a dual advantage of strengthening domestic production and positioning Indian coffee more aggressively in international markets.

Accelerating global competitiveness

-AMIT SHRIVASTAVA,
Global Fujitsu Distinguished Engineer

The Union Budget 2025–26 firmly pushes agriculture, MSMEs, and emerging technologies, with significant initiatives like the AI Centre of Excellence in Education, National Geospatial Mission, and Deep Tech Fund of Funds. The nuclear energy roadmap, targeting 100 GW by 2047, signals India’s long-term commitment to sustainability. Expanded income tax relief and TDS/TCS simplifications aim to boost disposable income and ease business compliance, benefiting entrepreneurs and the middle class. The budget also advances shipbuilding, modern transport, and geospatial-led infrastructure planning.

However, the 4.4% fiscal deficit raises concerns given global uncertainties, and healthcare allocations seem modest for grassroots resilience. While the push for R&D, infrastructure, and clean energy is promising, effective execution, transparent timelines, and strong governance will determine success. If delivered well, this budget can accelerate India’s global competitiveness and economic resilience, but disciplined follow-through is critical to realising its full potential.

Driving growth, boosting investment

-DR. DHANANJAY DATAR,
CMD, Adil Group of Super Stores, UAE

The Union Budget 2025 is a commendable example of prudent financial planning, addressing both immediate needs and long term growth. The emphasis on capital expenditure and infrastructure development is a positive step in stimulating economic growth, especially in a challenging macroeconomic environment.

By allocating resources to agriculture and the middle class, the government is ensuring that key sectors receive much-needed support, promoting inclusivity and broader economic well-being.

Moreover, the strategic focus on infrastructure development will not only create jobs but also lay the foundation for improved connectivity, logistics, and overall productivity, benefiting various sectors in the years to come.

Once interest rates begin to ease, the manufacturing and MSME sectors are poised for significant capital expenditure and expansion, leading to increased domestic consumption and a boost in exports. This holistic approach reflects a clear understanding of the need for both short-term resilience and long-term growth. With a well-balanced mix of fiscal stimulus and structural reforms, this budget has the potential to position India for sustained economic progress in the coming years. However, successful implementation and monitoring of these initiatives will be crucial to ensure that the benefits are fully realised.

Lukewarm budget for women

-RONITA SENGUPTA,
Group Chief Corporate Development Officer, GTT Data Solutions

The Union Budget 2025-26 takes steps towards women empowerment, especially in entrepreneurship, housing and healthcare. The scheme for first-time women entrepreneurs and increased allocations for Pradhan Mantri Awas Yojana, where 73% of rural homes are in women’s names, are commendable. The budget also provides tax relief and encourages spending, but it lacks focus on savings—an essential pillar of financial security for women. True empowerment isn’t just about earning and spending; it’s about building long term financial resilience. Women must be encouraged to save and invest, ensuring they have a safety net for themselves and their families. Additionally, while workforce participation is rising, skill development programmes face budget cuts. Maternal benefits remain outdated, and despite a small increase, the Nirbhaya Fund remains underutilised. India needs a holistic approach—higher investments in STEM education, digital upskilling, and financial literacy programmes that emphasise wealth creation. Women’s elevation isn’t just about inclusion; it’s about financial independence, leadership, and decision-making power. A truly progressive budget must ensure women are not just active in the economy but are financially secure, empowered, and in control of their future.

Pro-middle class, holistic budget

-GEETANJALI KIRLOSKAR,
Chairperson and MD, Kirloskar Systems Pvt Ltd.

The Union Budget of 2025 is a high powered budget and brings good tidings for the large, growing middle class. A positive change in taxation for the common man is great. A Rs.11.2 trillion Public Capex for FY26 with deficit kept at 4.4% underlines the fiscal and monetary efficiency are at the very heart of this dynamic budget. Similarly, given our agrarian roots, a boost to agro economy will increase rural productivity and go a long way in creating the rural Rs 3 trillion economy by the year 2030.

In a nutshell, this year’s budget is holistically crafted to strategically address the consumption, savings and financial needs of middle-class households, whether it is agriculture, employment, MSME employment intensive sectors or taxation relief.

A forward thinking budget

-DR. SUDHIR MEHTA,
Founder and Chairman, EKA Mobility and Pinnacle Industries Ltd.

We commend the government's forward - thinking budget, which emphasises sustainability, innovation, and domestic industrial growth. The Union Budget 2025 announcements underline the commitment to creating an environment that fosters economic growth while addressing major issues in the clean energy and mobility sectors. The Finance Minister’s initiatives, including the National Manufacturing Mission and strategic exemptions on critical minerals for EV battery production, are crucial steps toward strengthening the cleantech ecosystem. Importantly, the budget exempts 12 more minerals, cobalt powder, lead, zinc, lithium-ion battery trash, and other essential inputs from Basic Customs Duty (BCD). There has also been a noticeable increase in the manufacturing of 35 new EV capital products. These programmes demonstrate a strong commitment to sustainability, innovation, and greater industrial competitiveness, setting the framework for transformative progress in a variety of critical sectors. The Budget 2025 accelerates the transition to a more sustainable and environmentally conscious future.