Union Budget 2025: How Industry Leaders View the Future Overall, the Union Budget 2025 lays out a progressive and strategic vision for India's economic growth, balancing immediate fiscal responsibility with long-term development goals. Business leaders across industries have largely welcomed these initiatives, acknowledging their potential to drive inclusive and sustainable growth
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The Union Budget 2025 has set a definitive course for India's economic progress. With significant reforms aimed at boosting domestic manufacturing, enhancing infrastructure investment, and empowering key industries, the budget has received widespread appreciation from business leaders across sectors.
Electronics and IT
Kapal Pansari, managing director of Rashi Peripherals Limited (RP Tech), hailed the budget for reinforcing India's position as a global electronics hub. The increase in the tax-free income threshold to INR 12 lakh is expected to drive demand for consumer electronics, IT peripherals, and gaming products. "The budget strengthens India's commitment to domestic electronics manufacturing and aligns with the vision of 'Make in India' and 'Digital India'," Pansari remarked. "Policy measures encouraging domestic production of critical electronic components will contribute to a more self-reliant and resilient electronics supply chain," he continued. The government's push to promote Global Capability Centers (GCCs) in Tier-2 cities will accelerate digital adoption, providing new growth avenues for the ICT sector.
Infrastructure and investment
Virendra D. Mhaiskar, chairman & managing director of IRB Infrastructure Developers Limited, lauded the government's focus on infrastructure growth while maintaining fiscal discipline. "The budget reflects a genuine commitment to spur growth by placing more money in the hands of people while ensuring fiscal prudence. This is a tough act but a necessary one," he stated.
A significant highlight is the government's asset monetization target of INR 10 lakh crore, opening up substantial opportunities for private sector investment. The continued tax exemption for sovereign wealth funds and pension funds sends a strong signal to global investors, reinforcing India's appeal as a key investment destination.
Agriculture and rural development
Ajay S. Shriram, chairman & senior managing director of DCM Shriram Ltd, described the budget as responsible and balanced, addressing both tax concessions and long-term developmental spending. He emphasized the budget's focus on agriculture as a growth engine, particularly through initiatives like crop diversification, yield improvement, and irrigation expansion.
"The importance given to the National Mission on High Yielding Seeds and the Mission on Cotton Productivity is commendable. Agricultural research offers high returns on investment, and greater collaboration between public and private sectors will be essential in ensuring that India remains competitive in advanced agricultural technologies," he noted.
Defence manufacturing
The budget has made strong strides in bolstering domestic defence production, aligning with India's long-term strategic vision. Jaikaran Chandock, director of Balu Forge Industries Ltd, highlighted the government's move to allocate a sizable portion of defence modernization funds for procurement through domestic industries.
"This will significantly boost private sector participation and enhance capacity-building in India's defence ecosystem. Moreover, the emphasis on AI and deep tech innovation will lead to a future-ready talent pipeline, further augmenting India's defence manufacturing capabilities," Chandock stated. The budget sets a clear roadmap for achieving the ambitious target of INR 50,000 crore in defence exports by 2029.
MSMEs and manufacturing
The government's continued focus on strengthening India's MSME sector has been well-received. Neeraj Jain, group CFO of Cosmo First Ltd, highlighted the introduction of the credit guarantee scheme and the National Manufacturing Mission as game-changers.
"With MSMEs contributing over 45 per cent to India's exports, the new export promotion initiatives will enhance competitiveness in both domestic and global markets. Additionally, the budget's focus on technology upgradation and global supply chain integration is promising as we transition towards becoming a manufacturing and export-led economy," Jain explained. He also emphasized that the budget will enable domestic packaging manufacturers to compete more effectively in international markets, furthering the 'Make in India' vision.
Overall, the Union Budget 2025 lays out a progressive and strategic vision for India's economic growth, balancing immediate fiscal responsibility with long-term development goals. Business leaders across industries have largely welcomed these initiatives, acknowledging their potential to drive inclusive and sustainable growth in the years to come.
