The Union Budget 2025 has set the stage for India’s next phase of economic transformation, addressing key sectors with bold initiatives and forward-looking policies. Industry leaders from different sectors weigh in on how the government’s announcements align with their expectations and pave the way for growth.
Strengthening MSMEs: The Backbone of India's Economy
Tarun Joshi, CEO & Founder, Join Ventures & IGP, highlighted the pivotal role of MSMEs and startups in India’s economic ecosystem. Reflecting on the government’s initiatives, he said:
“The Union Budget 2025 is a strong step towards empowering India's MSMEs. The enhanced MSME classification limits and improved credit facilities will drive innovation, scale, and global competitiveness. The expanded Credit Guarantee Scheme and Fund of Funds for startups are timely moves that will fuel entrepreneurship, particularly for first-time and women entrepreneurs. Additionally, the revamped PM Swanidhi Scheme for gig workers ensures greater financial inclusion and security for India’s growing digital workforce. These measures collectively pave the way for a more resilient and dynamic business ecosystem.”
Empowering the F&B Sector: A Recipe for Growth
Rahul Seth, Co-founder, Burger Singh, expressed optimism about measures supporting entrepreneurship and the gig economy:
“The Union Budget 2025 takes a positive step toward strengthening India’s startup ecosystem and gig economy. New income tax rates will boost consumption by easing the financial burden on the middle class, while term loans of up to ₹2 crore for first-time entrepreneurs will drive business creation and employment. As a QSR brand deeply connected with both sectors, we welcome these measures that enhance ease of doing business and financial inclusion, ensuring greater accessibility to quality dining options across India.”
Driving AI Innovation: A Leap Toward Global Leadership
Abinav Varma Kalidindi, Founder & CEO of Ikonz Studios, emphasized the transformative potential of AI investments and startup credit expansion:
“So far, AI innovation has been dominated by the US and China, but with the ₹500 crore investment in AI centers, India is signaling its intent to take a leading role in the global AI landscape. This move strengthens our position as one of the most committed economies driving AI advancements. Expanding credit support for startups is another step in the right direction, enabling founders to take risks and scale faster. While these initiatives are promising, consistent execution and long-term policy support will be crucial in making India a true AI and startup powerhouse. Additionally, the increase in income tax exemption to ₹12 lakh will also provide financial relief, boosting spending and overall economic momentum.”
Transforming Rural Development
Preet Sandhuu, Founder and MD, AVPL International, commended the focus on rural development and education:
“Union Budget 2025 takes significant steps toward rural development, technological advancement, and education, with a strong focus on capacity building. The Prime Minister Krishi Yojana targets 100 low-productivity agri-districts, aiming to benefit 1.75 crore farmers through sustainable practices and improved credit access. The increased Kisan Credit Card loan limit to ₹5,000 addresses the challenges faced by 86% of farmers cultivating on small and marginal holdings. Additionally, the expansion of the Atal Tinkering Lab (ATL) initiative to 50,000 schools and the establishment of Centres of Excellence for AI in Education demonstrate a forward-thinking approach to education and innovation. The National Geospatial Mission will modernize land records and enhance urban planning, leveraging the PM Gati Shakti framework to improve infrastructure project execution.
The budget also boosts sectors like drones, auto components, and electronics manufacturing, fostering technological growth. All these improvisations align with AVPL’s mission to empower rural communities and support a holistic vision for sustainable development and technological progress, reinforcing a pathway to resilience across sectors.“
A Vision for Inclusive Growth
Union Budget 2025 reflects a strong commitment to nurturing key sectors of the economy. By addressing industry needs through technological investments, tax reforms, and targeted incentives, the government is laying the groundwork for sustainable and inclusive growth. Industry leaders are optimistic that these measures will fuel innovation, create jobs, and solidify India’s position on the global economic stage.