A roadmap for growth, fiscal prudence & digital transformation
Mumbai: As India gears up for Budget 2025, all eyes are on the government’s roadmap for economic growth, fiscal discipline, and sectoral reforms. With global uncertainties, evolving consumer sentiment, and the rising influence of technology, this budget is expected to set the tone for India’s next phase of development. Key stakeholders—industries, businesses, and citizens—are anticipating measures that fuel investment, create jobs, and enhance ease of doing business while maintaining fiscal prudence.
From taxation policies and infrastructure spending to digital economy push and social welfare initiatives, Budget 2025 will be a crucial milestone in shaping India’s economic trajectory. Will it meet expectations? What are the key takeaways for businesses and individuals? Let’s dive in.
Finance Minister Nirmala Sitharaman presented the Union Budget for the 2025-26 financial year today, achieving a historic milestone as the first finance minister to deliver the budget for eight consecutive years. Before her presentation, she was warmly welcomed by President Droupadi Murmu, who offered her the customary ‘dahi-cheeni’ (curd and sugar), a traditional ritual believed to bring good fortune and sweetness ahead of the government’s financial announcements. This year’s budget was widely expected to prioritize fiscal discipline while introducing measures to boost consumption, underscoring the government’s commitment to economic stability and growth amid ongoing challenges.
MadeInMedia spoke to decision makers across industries for their reactions on the budget.
Anand Jain, Co-Founder and Chief Product Officer, CleverTap said, “The Union Budget 2025 signals a strong push towards innovation, the startup ecosystem, and technology-led growth through ‘Sabka Vikas,’ over the next five years. The government’s focus on expanding access to capital, simplifying regulations, and supporting skill development will further strengthen India’s startup ecosystem. The new Fund of Funds with an expanded scope, along with an additional ₹10,000 crore contribution, will strengthen the funding pipeline for startups and bridge capital gaps, while the increase in credit availability from ₹10 crore to ₹20 crore provides much-needed liquidity for early-stage startups.
Meanwhile, raising investment and turnover limits for MSME classification will help enterprises adopt advanced technologies, expand their operations and compete at a global level.
The introduction of a Deep Tech Fund and the PM Research Fellowship is a strong step towards enabling both technical and non-technical innovators to bring disruptive ideas to life. Investments in a Centre of Excellence for AI in Education and the establishment of five National Centres of Excellence for Skilling, along with global skilling partnerships, align with the Viksit Bharat vision. This will equip India’s workforce for the future, ensuring we remain globally competitive in high-growth sectors like AI and deep tech.
By introducing these forward-looking initiatives, coupled with revised income tax slabs that empower the middle class and drive consumption – a long-overdue relief to millions of individuals – the budget lays a strong foundation for making India a thriving hub for startups and technology-led innovation.”
Ashwin N Sheth, Chairman and Managing Director, Ashwin Sheth Group
The government’s unwavering focus on resolving stressed housing projects and boosting infrastructure development is a welcome move for the real estate sector. The completion of 50,000 housing units, with another 40,000 set to be delivered by 2025, will provide much-needed relief to homebuyers while easing financial pressures on middle-class families. The launch of SWAMIH Fund II, with a ₹15,000 crore blended finance facility, will further accelerate the completion of 1 lakh units, ensuring liquidity and project completion.
The special focus on urban infrastructure development will certainly boost real estate. A dedicated push for skilling initiatives in construction, real estate, and hospitality will equip the workforce with industry-relevant expertise, creating employment opportunities and strengthening India’s urban landscape. These forward-looking measures will reinforce confidence among homebuyers, investors, and industry stakeholders, paving the way for sustained economic growth.
Lastly with the revised classification of Income Tax slabs and with a wider set of population benefiting out of the resultant savings, a greater flux is expected to be observed in consumer spending that should eventually provide impetus to overall economic spending and reduce inflation in the long-run resulting in lowering of interest rates.
Shivam Puri, MD & CEO, Cipla Health Limited.
“The increase in the tax-free income limit is a significant relief for the middle class, putting more money in the hands of consumers. This boost is expected to drive overall consumption, benefiting essential categories, including health and wellness products.
It’s also encouraging to see the government’s focus on nutrition through targeted programs. As awareness of health and well-being grows, higher incomes will naturally lead to increased demand for wellness products.”
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.”
Pushkaraj Bidwai, CEO of People Matters.
His perspectives highlight the budget’s strategic focus on empowering India’s workforce and driving economic growth through targeted investments in skilling, job creation, and sector-specific initiatives.
“The Union Budget 2025-26 makes decisive strides toward strengthening India’s workforce and economic resilience. By raising the income tax exemption limit to ₹12 lakh, the government is putting more disposable income in the hands of over 2 crore professionals, fostering greater financial security and driving consumer spending, catalysing economic activity. But beyond tax relief, the real transformation lies in its commitment to job creation and skilling.
The ₹50,000 crore boost in the credit guarantee scheme for micro-enterprises, along with expanded MSME investment and turnover thresholds, is expected to generate over 30 lakh new jobs, particularly in manufacturing and services. Sector-specific allocations, such as ₹2,500 crore for the footwear and leather industry, reinforce the intent to create large-scale employment while strengthening India’s global competitiveness.
A key differentiator this year is the establishment of National Centres of Excellence for Skilling, designed to bridge the persistent gap between traditional education and evolving industry demands. Unlike previous skilling initiatives, these Centres will focus on high-growth sectors like AI, semiconductor design, and renewable energy, ensuring India’s workforce is future-ready. Coupled with a ₹10,000 crore investment in DeepTech, expanded research fellowships at IITs and IISc, and the creation of a National Institute of Food Technology in Bihar, the government is aligning its vision with industry needs, fostering both innovation and regional employment.
While the intent is strong, execution will determine impact. The success of these initiatives hinges on industry collaboration, agile policymaking, and the ability to translate investments into real employment opportunities. If implemented effectively, these measures could redefine India’s position as a global hub for talent, technology, and manufacturing.”
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.
Rajan Navani—Chairman of CII India @100 Council, Co-Chairman of CII National Committee on Media & Entertainment, and Founder & CEO of Jetsynthesys—shared his candid, real-time reflections on how the Union Budget 2025 sets a transformative agenda for India’s future.
“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.”
Saugata Gupta, MD & CEO, Marico Limited.
“The Union Budget 2025-26 is a bold and forward-looking plan that places the middle class at its core while ensuring inclusive and sustainable growth across all sectors. By prioritizing, agricultural reforms, health & nutrition, education, middle class consumption and economic acceleration, this budget aligns with government’s vision of ‘Viksit Bharat’ by 2047.
For middle-class families, strategic focus on targeted tax relief and enhanced social security measures, will uplift household sentiments, boost disposable income and drive consumption. This will provide much-needed financial stability to the masses. Inclusivity is at the heart of Budget 2025, with strategic initiatives to bridge economic disparities and foster equal opportunities for all. Support for women, entrepreneurs, small businesses, and marginalized communities will drive equitable growth, making economic prosperity more accessible.
The continued focus on rural development, with enhanced credit availability for farmers and initiatives like the National Mission for Edible Oilseeds and Aatmanirbharta in Pulses, will drive agricultural productivity and strengthen rural economies. The allocation of ₹1.71 lakh crore to agriculture and allied activities, coupled with initiatives like the National Mission for Edible Oilseeds, Aatmanirbharta in Pulses, and the Prime Minister Dhan-Dhaanya Krishi Yojana, will drive agricultural productivity, stabilize rural economies, and ensure farmers have access to essential resources. In the realm of health and nutrition, the enhancement of cost norms for nutritional support programs like Saksham Anganwadi and Poshan 2.0 is a significant step.
The emphasis on MSMEs, including credit support for micro enterprises, and emphasis on upskilling the youth and reforms in education is a step forward in fostering entrepreneurship and job creation. The focus on accelerated sectoral growth is evident through incentives for manufacturing, technology, infrastructure, and sustainable energy. By investing in digital infrastructure, skill development, and supply chain enhancements, the Budget paves the way for direct and indirect jobs, innovation, and long-term economic resilience.
Overall, Budget 2025 strikes a crucial balance between fiscal responsibility and progressive reforms. This is a budget that fuels aspirations, strengthens the middle class, drives simplicity, and charts a clear path toward a more prosperous and inclusive future.”
Dhiresh Bansal, Chief Financial Officer at Meesho
“We welcome the Union Budget 2025-26 for its strong push for MSME growth, digital commerce, and boosting consumption for mass Indians. Increasing the investment and turnover limits for MSME classification is a game-changer that will drive scale, innovation, and job creation. The big boost for sectors such as toys, footwear and many others will lead to improved domestic capabilities in manufacturing and exports. We also wholeheartedly welcome the paradigm shift in income tax, which will allow many more mass Indians to fulfil their aspirations. We at Meesho, remain committed to empowering millions of small entrepreneurs and look forward to the long-term impact of these reforms.”
Anirudh A. Damani, Managing Partner, Artha Venture Fund
This budget is nothing short of transformative—it covers a wide spectrum of critical areas, from tax simplification to deep-tech investments, infrastructure, and energy expansion. The increase in income tax exemption to ₹12.75 lakh is a bold, economy-igniting move that puts more money in the hands of salaried individuals, fueling consumption and economic momentum. The renewal of the ₹10,000 crore Fund of Funds and the focus on deep-tech funding will provide much-needed capital to early-stage ventures and India’s next wave of innovation.
The increased allocation for nuclear and power sectors, alongside massive infrastructure CAPEX, signals that this budget isn’t just about the next year—it is about building a globally competitive India by 2047. This is the first full-fledged budget of the Modi government’s third term, and it has delivered on the needs of the economy, startups, and investors alike. The next big moment to watch will be the income tax bill set to be tabled next week, which could further revolutionize India’s tax system. Overall, this budget sets the foundation for sustained, long-term economic growth, and we at Artha Venture Fund are supremely excited about the future it promises.”
Faisal Farooqui – Founder & CEO, Mouthshut.com
“Any budget announcement should be analyzed, not interpreted. Interpretation is inherently subjective, influenced by the proverbial glass we wear and hence the sadness or happiness.
A true analysis, is rooted in facts and the fine print, ensuring an objective and accurate understanding.”
Dhruv Shringi, Co-Founder & CEO, Yatra Online Limited
“The Union Budget 2025 reflects a clear commitment and lays a strong foundation for boosting India’s tourism sector through targeted and impactful initiatives, and we commend the government’s efforts in this area, particularly in making it easier for tourists to visit important religious and cultural sites.
The government has done a great job of allocating more funds towards infrastructure development, and expanding the UDAN scheme to 120 new destinations, including greenfield airports in Bihar. This will significantly improve regional connectivity, unlocking the tourism potential of emerging Tier 2 and 3 cities and driving the next wave of air travel growth. Enhanced infrastructure, including hotel integration in the harmonized scheme and development of top destinations in partnership with states, will further enrich the travel experience.
We applaud the focus on medical tourism, simplified e-visas, and support for homestays, which will create new opportunities for travelers and entrepreneurs. At Yatra, we’re committed to supporting this growth by leveraging our network and technology to offer competitive fares, curated travel packages, and empowered local homestays. We look forward to collaborating with the government and stakeholders to realize the full potential of these initiatives and drive the continued growth of India’s tourism sector.”
Aasif Malbari, Chief Financial Officer – Godrej Consumer Products Ltd.
“The Union Budget 2025 takes a balanced approach by strengthening rural infrastructure, manufacturing, and consumer spending—three critical pillars for the FMCG sector. Investments in rural development and job creation will boost economic activity and drive higher consumption, opening new opportunities for market expansion. The National Manufacturing Mission is a strong step toward enhancing domestic production, reducing import dependencies, and improving cost efficiencies. Additionally, tax reforms benefiting the middle class will increase disposable income, further fueling demand across essential and aspirational FMCG categories.
Overall, the Budget lays a strong foundation for a more consumption-driven economy, creating significant growth opportunities for the FMCG industry.”
Shrenik Gandhi, Co-founder and CEO, White Rivers Media
For years, the middle class has been like that student who studies hard but rarely gets a gold star in the Budget. This time, the government has finally handed them a well-deserved reward! The exemption of incomes up to ₹12 lakh from tax is a game-changer, giving millions of salaried professionals more breathing room. More money in their pockets means more spending, which fuels businesses and strengthens the economy—it’s a win-win!
But this Budget isn’t just about relief; it’s about building the future. With increased investments in AI, digital skilling, and startup growth, India is doubling down on becoming a global digital powerhouse. These steps will not only boost entrepreneurship but also future-proof the workforce for the next wave of economic expansion.
For once, the middle class isn’t just getting a mention—it’s getting a real, tangible benefit. A tax break today, a stronger digital economy tomorrow—this Budget is balancing immediate relief with long-term progress!
With more disposable income in the hands of consumers due to the ₹12 lakh income tax relief, ad spends are expected to see a positive uptick, particularly in consumption-driven sectors from salaried class.
Expected Growth in Ad Spends:
The overall advertising market could see a 10% boost, driven by increased discretionary spending.
Digital ad spends, already on a growth trajectory, may accelerate further as brands look to capitalize on rising consumer sentiment.
Sectors Likely to Increase Ad Spends:
Retail & E-commerce: More spending power = more online & offline shopping. Expect aggressive ad campaigns.
Automobile: Higher disposable incomes often drive car & two-wheeler purchases. Auto brands will likely increase ad investments.
Real Estate: With better affordability, developers might push marketing for mid-income housing.
Consumer Electronics & Smartphones: A direct beneficiary of increased disposable income, this sector will ramp up promotions.
Travel & Hospitality: As financial pressure eases, expect a surge in domestic and international travel promotions.
Fintech & BFSI: With extra savings, more consumers may explore investments, mutual funds, and insurance, prompting BFSI brands to up their ad spends.
Overall, this Budget not only benefits individuals but also creates a ripple effect for brands and advertisers, making it a big win for the ad industry.
Nirvaan Birla, Managing Director of Birla Open Minds Education Pvt Ltd and Birla Brainiacs
“The Union Budget 2025 presents a forward-looking vision for the education sector, aligning with India’s goal of becoming a knowledge-driven economy. The emphasis on skilling through National Centres of Excellence, the PM Research Fellowship Scheme, and AI-driven education hubs is a commendable step towards strengthening India’s human capital and fostering technological innovation. The expansion of IITs, medical institutions, and Atal Tinkering Labs further reinforces the government’s commitment to building a future-ready workforce. The Bharat Net project’s broadband expansion in schools is a welcome move to bridge the digital divide, but its success will depend on effective accessibility and implementation.
However, the real challenge lies in execution. Streamlining PPP models for upskilling, simplifying regulatory frameworks for edtech, and ensuring efficient subsidy distribution will be crucial for achieving meaningful impact. Additionally, greater emphasis on facilitating ease of doing business for private players, including support for trade fairs and global collaborations, would have further strengthened the sector.
As we align with the vision of Viksit Bharat, ensuring that these ambitious initiatives translate into tangible outcomes will be key to empowering students, educators, and institutions. This budget sets a strong foundation, and with strategic execution, it can drive meaningful transformation in India’s education landscape.”