Union Budget 2025 industry reactions highlights: Budget lays emphasis on tax reforms, fostering innovation, and skills development, says Wipro CFO

The Finance Minister has presented a clear, growth-driven budget that aligns with the Prime Minister’s vision of fostering a competitive and resilient India with inclusive growth by investing in people, economy and innovation. The budget prioritizes extensive national infrastructure development and accelerates the digitization of the economy. Continuous government investments in infrastructure are set to fuel sustained economic growth. Additionally, the government’s strong commitment to green mobility is expected to create new avenues for innovation and growth across the country. The launch of the National Manufacturing Mission will support the sector by providing crucial policy backing, execution plans, and a governance and monitoring framework. With strategic investments in skilling, digitization, healthcare, education, agriculture, and electrification, the budget aims to shape India’s economic trajectory in the years ahead. Furthermore, it reinforces our commitment to clean energy vehicles, contributing to a greener, cleaner future as part of the national mission to achieve net-zero carbon emissions, says Ashok Leyland’s Executive Chairman Dheeraj Hinduja.

The budget’s focus on establishing a National Manufacturing Mission aligns with our goal of engineering in India for ‘Make in India’ and enhancing the nation’s self-reliance in manufacturing, says Tata Technologies CEO & MD Warren Harris. 

This initiative is poised to attract investments and improve efficiency, positioning Indian companies as globally competitive players. 

The establishment of five National Centres of Excellence for Skilling is a pivotal move in building a future-ready workforce. This initiative resonates with our commitment to engineering a better future for India’s youth through investment in in-demand training programs across Industry 4.0, IoT, and advanced manufacturing, and collaborating with state governments to upgrade ITIs into technology hubs. 

Additionally, the allocation of ₹500 crore for a Centre of Excellence in Artificial Intelligence for education underscores the importance of fostering innovation and research in AI, which will benefit both the education sector and the broader technology landscape.

This year’s budget is a significant step toward making India a global hub for innovation and advanced manufacturing. The Deep Tech Fund and ₹1.5 lakh crore credit guarantees will empower MSMEs and startups to embrace automation, while expanded PLI schemes and the National Manufacturing Mission will strengthen India’s industrial backbone, says Addverb co-founder Satish Shukla.

The push for AI-led skilling through Centres of Excellence and Atal Tinkering Labs aligns with the need for a future-ready workforce. At Addverb, we see this as a moment of transformation-one that reinforces our commitment to automation and robotics, driving India’s journey toward Viksit Bharat.

The Union Budget 2025-26, presented by Finance Minister Smt. Nirmala Sitharaman has a laser sharp focus on boosting economic growth, says Kalyan Jewellers MD T.S. Kalyanaraman. 

With definitive steps in infrastructure investment and key support for agriculture, manufacturing and urban development, there is a deep commitment to continue on the growth momentum. As brands continue their growth in the real Bharat, the Centres of Excellence for Skilling, coupled with global skilling partnerships, will add to the available talent pool. The tax reforms proposed in the Budget will ensure that the consuming class will have enhanced discretionary income in their hands leading to a significant demand stimulus. This Union Budget will definitely energise the market sentiment and is another key step to realising our combined vision of a Viksit Bharat!

The Union Budget delivered today showcases a clear vision for India’s economic future. The reforms in income tax structure will put more money in the citizens’ pockets, creating a cycle of spending and growth says Mr. Sanjaya Mariwala, President of the IMC Chamber of Commerce and Industry and Executive Chairman & Managing Director of OmniActive Health Technologies. 

What is particularly encouraging is the focus on agricultural and MSME improvements. The Finance Minister signalled a strong commitment to enhance crop diversification, self-reliance and agriculture productivity. Furthermore, the Government’s focus on streamlining business processes and enhancing manufacturing by providing policy support to industries will boost job creation and enhance productivity.

In terms of medical care, the addition of 10,000 seats and opening of daycare centres for cancer in all districts highlight an increasing emphasis on accessible and premium medical care. Additionally, skilling programs including the setting up of National Centres of Excellence in AI education will ensure that our youth can compete in the global economy.

These measures, rooted in Sabka Saath, Sabka Vikas, Sabka Vishwas, Sabka Prayaas, ensure inclusive progress, balancing economic expansion with social upliftment. Aligning seamlessly with the Viksit Bharat 2047 vision, driving India towards sustained prosperity and global leadership.

Commenting on the Union Budget 2025, Puneet Chandok, President, Microsoft India & South Asia said“It’s heartening to see the government’s vision of building Viksit Bharat by 2047 with AI and technology in the Union Budget 2025. We welcome the hon’ble Finance Minister’s announcements of establishing a Centre of Excellence for AI in Education and creating a deep tech fund to catalyze future startups. As the Economic Survey 2025 highlights, India must capitalize on AI opportunities and leverage its young and dynamic population to create a tech-forward workforce for India and for the world. This resonates deeply with Microsoft’s work in the country and our commitment to put AI in the hands of everyone. We recently announced our plans to equip 10 million Indians with essential AI skills by 2030. This includes an MoU with IndiaAI to skill 500,000 individuals, including students, educators and women entrepreneurs, by 2026. Moreover, with our strategic investments, such as the recently announced US $3 billion commitment to cloud and AI infrastructure in India, we aim to drive innovation that enhances productivity, accessibility and trust. There is no doubt AI has the potential to transform every sector of the Indian society, from boardrooms to classrooms, commerce to communities, and finance to farmers. At Microsoft, we are committed to helping India lead in an AI-centric world for its benefits to translate into ‘Sabka Saath, Sabka Vikas’.”

Commenting on the Union Budget 2025-26 proposals announced earlier today, Mr Harsha Vardhan Agarwal, President, FICCI said, “Through the Budget the government has made a strong effort to address the immediate challenges being faced by the economy, particularly on the consumption front, while keeping an eye on the long-term target of pursuing the vision of ‘Viksit Bharat’. FICCI would like to compliment the Finance Minister for a comprehensive, inclusive and forward-looking budget that encompasses a heavy dose of reforms, fiscal stimulus and a clear focus on the farm sector, MSMEs, youth and women of the country.”

“The budget proposals will re-energise the economy by lifting the sentiments of the middle class and nudging the private sector to advance its investment plans as demand improves across sectors,” he added. 

The Budget was presented at a time when the economy was seeing a slowdown in growth and FICCI had requested the government to consider taking steps that would spur both consumption and investment demand. The changes brought about in the personal income tax structure are noteworthy and will leave more money in the hands of the people translating into higher consumption demand. Likewise, while the increase in the capital expenditure of the government may seem modest compared to the previous years, it is still a good sign.

The agriculture sector once again saw a huge thrust being placed on it with the government announcing a focused program that would cover 100 districts with low productivity, moderate crop intensity and below-average credit parameters. FICCI had requested in its pre-budget submission that an agricultural yields mission for bottom 100 districts similar to aspirational districts programme must be considered by the government and we are happy to note that this suggestion has been taken up in the budget. Additionally, the announcement pertaining to launch of a National Mission on High Yielding Seeds will aid the country’s efforts to mitigate the impact of climate change on the farm sector. Further, the six-year mission focusing on improving yields of pulses will help us address the inflationary pressures seen in this important category of food, which is a primary source of protein for many Indians. The private sector of the country stands ready to partner the government in both these missions and support the same in all possible manner.

The Union Budget proposals have prioritized consumption through personal tax cuts even while staying the fiscal consolidation path, says Tata Asset Management’s Equities CIO Rahul Singh. 

The focus on investment cycle continues but mainly through measures pertaining to ease of doing business and creating conducive environment for private investments rather than budget allocations. Focus on building domestic manufacturing base, urban infrastructure and simplification of tax structures (both direct and indirect) is a positive development. Government has also chosen to sustain the push for the tough reforms in power sector as well as developing a long-term plan for public-private partnerships in infrastructure. Lack of any changes in capital gains is a short-term boost to the equity markets.

The significant reform in personal taxation is set to boost consumption, providing a major advantage for D2C brands, quick commerce, and FMCG sectors. Additionally, the increase in loan limits up to ₹20 crore is a substantial boost for new-age companies. Overall, this budget presents a highly positive outlook, with a clear focus on simplifying tax regulations and enhancing the ease of doing business, says InCred Finance’s Head of Digital Business Loans Nishith Maheshwari.

The Union Budget 2025 outlines a strategic plan for economic growth, fostering private sector investment and strengthening the MSME ecosystem, says PMI Electro Mobility CEO Dr. Aanchal Jain. It prioritizes local manufacturing with the establishment of five National Centres of Excellence for skills training, ensuring a highly skilled workforce.

A key focus is the expansion of India’s electric vehicle (EV) industry. Incentives for domestic production of EV components, including batteries, motors, and controllers, aim to lower costs and enhance supply chain efficiency. The removal of duties on essential tools and critical minerals like lithium and cobalt further supports this goal.

This forward-looking approach strengthens clean mobility, enhances domestic manufacturing, and positions India as a global leader in sustainable transportation. The budget also offers opportunities for the first time women entrepreneurs and financial independence for rural women which will lay foundation for Viksit Bharat

The Union Budget prioritizes economic progress by placing a strong emphasis on tax reforms, fostering innovation, and skills development, without losing sight of the fiscal deficit target, says Wipro Limited CFO Aparna Iyer. 

With AI becoming an essential tool for a tech powered economy, it is heartening to see the introduction of Centers of Excellence (COE) for Artificial Intelligence in education. To position India as a leader in the global AI race, it is imperative to prioritize investment in STEM talent. We also have the digital infrastructure, and the talent pool required to cultivate a thriving startup ecosystem capable of propelling innovation. To unleash this potential, it is also important to offer financial support and streamline the process of conducting business to bolster the startup community. The Fund of Funds for Startups (FFS) will provide the impetus to boost this ecosystem.

Rationalization of tax rate for middle class will also help in improving domestic consumption and household savings and it’s a welcome move. The budget has also continued its efforts towards improving ease of doing business through multiples measures such as rationalization of TDS and TCS compliances, changes to Transfer pricing assessments etc.. By prioritizing these key areas, India can solidify its position as a frontrunner in the global economy and harness the full potential of technological advancements and we commend the Government’s efforts in this direction.

The Deep Tech Fund of Funds is a crucial step toward positioning India as a global leader in emerging technologies, says Rahil Patel, Chief Growth Officer, QNu Labs. This initiative will provide essential financial support to startups in quantum computing, AI, and advanced semiconductors, promoting innovation and global competitiveness. It reflects the government’s commitment to breakthrough technologies that drive economic growth and digital resilience. We welcome this development and look forward to its impact on India’s tech-driven future.

Mr. Uday Narang, Founder and Chairman of Omega Seiki Pvt. Ltd., remarked, “The Union Budget 2025-26 has taken a commendable step towards strengthening India’s manufacturing ecosystem by removing the Basic Customs Duty (BCD) on critical materials such as cobalt, lithium-ion battery scrap, and lead. These materials are essential for the production of lithium batteries, which are the backbone of the electric vehicle and clean energy industries. By eliminating these duties, the government is not only reducing the cost of production for manufacturers but also accelerating the transition towards more affordable and sustainable technologies.”

“This bold move will help make electric vehicles and electronics more affordable for consumers while fostering the growth of domestic industries. With a focus on local manufacturing, the government is laying the foundation for India to become a global leader in battery production and renewable energy technologies, while significantly reducing dependence on imports. At Omega Seiki, we are excited about the future prospects of this policy and its potential to drive innovation and sustainability in the sector.” Added Mr. Narang

On Skill Development Mr. Narang said, “The announcement of three Centres of Excellence in Artificial Intelligence with a ₹500 crore allocation in the Union Budget 2025-26 is a remarkable initiative that will significantly boost India’s technological and educational landscape. This focus on AI research and its application in education will empower the next generation with cutting-edge skills, preparing them for the challenges of tomorrow’s workforce. At Omega Seiki, we strongly believe that this forward-thinking investment in skill development will drive innovation across sectors, particularly in industries like EVs, clean energy, and electronics, paving the way for a digitally proficient and globally competitive India.”

This budget provides a shot in the arm for a sector that has not received consistent funding , despite being one of the older nuclear programmes in the world. The R&D efforts needed for an indigenous modular reactor are significant and the 2033 timeline for 5 reactors would put it as one of the fastest to market. International collaboration to accelerate the development and learn from what other countries have done would also be a welcome step, says Karthik Ganesan, Fellow and Director - Strategic Partnerships at Council on Energy, Environment and Water.

The government’s move to hike the FDI limit to 100% from the current 74% will be instrumental in attracting fresh capital from overseas insurers, thereby securing robust growth for the insurance sector over the next two decades, says Anup Rau, MD & CEO of Future Generali India Insurance Company Limited. 

According to government data, since 2015, when the government liberalised the foreign direct investment, or FDI, norms, and allowed at first 49% FDI in 2015 and increased it to 74% in 2021 the sector has received close to ₹54000 crore as FDI. The hike in FDI limit to 100% announced by the Union Finance Minister, Nirmala Sitharaman, in her Budget speech, will help provide a huge fillip to the sector. 

Both the Indian economy and the insurance market hold immense appeal for international insurers. However, we have too few players for a country and economy of our size. The number of players servicing the Indian market currently is comparable to much smaller emerging markets such as Malaysia and South Africa. Developed markets on the other hand have a much broader and deeper insurance market – the United States has over 5,000 insurers, the United Kingdom around 400, and Singapore over 200. 

This scarcity is partly due to the challenge global insurers face in finding suitable local partners. With just over 60 insurers operating in both life and general insurance sectors, and many of them functioning as joint ventures, the shortage of capable and willing local partners is evident. Permitting 100% FDI would be a game-changer, given its potential to address this issue.

The Union Budget 2025 is a forward-looking blueprint that effectively touches upon key engines of development—agriculture, MSME, investment, and exports—ensuring sustained economic momentum. The government’s commitment to accelerating growth towards Viksit Bharat, securing inclusive development, and uplifting household sentiments is commendable, says Domnic Romell, President at CREDAI-MCHI.

The move to raise the annual TDS limit on rent from ₹2.40 lakh to ₹6 lakh will significantly benefit small taxpayers and landlords, easing compliance burdens. Additionally, the increase in the income tax exemption limit to ₹12 lakh under the new regime will enhance spending power, particularly among India’s rising middle class, and drive housing demand.

A particularly welcome move is the amendment allowing taxpayers to claim the annual value of two self-occupied properties as nil, exempting them from notional rental income tax. Previously, homeowners could claim tax exemption only on one self-occupied property, while additional properties were subject to tax, even if they were not rented out. This progressive reform provides significant tax relief, encourages homeownership, and acknowledges the evolving housing needs of Indian families.

For the real estate sector, especially in the Mumbai Metropolitan Region (MMR), the announcement of SWAMIH Fund 2 with an infusion of ₹15,000 crore is a welcome step, ensuring liquidity for stalled projects and expediting housing deliveries. The completion of 50,000 dwelling units under the existing SWAMIH scheme, with another 40,000 in the pipeline, highlights the government’s strong push towards resolving the housing crisis.

The budget’s increased funding for affordable housing, including the enhancement of the tax deduction limit on home loan interest payments from ₹2 lakh to ₹5 lakh, is a game-changer. This will significantly improve housing affordability and stimulate market demand, particularly in urban centers like MMR. 

Regulatory reforms under RERA and GST have already brought much-needed transparency and efficiency to the sector, with 1.38 lakh real estate projects and nearly 96,000 agents registered under RERA as of January 2025.

Furthermore, the government’s continued commitment to infrastructure development under the National Infrastructure Pipeline (NIP) and enhanced urban infrastructure policies will provide a strong foundation for real estate growth. Investments in roads, highways, energy, and transportation will not only improve connectivity but also create jobs and fuel economic expansion.

We appreciate these growth-centric measures and look forward to further structural reforms, including the rationalization of GST and input tax credit for real estate, to unlock the sector’s full potential and drive urban transformation.

Budget 2025 underscores the Indian government’s commitment to positioning tourism as a key pillar of economic growth, job creation, and global engagement, says Lucas Ramos, Senior Director at Travel & Membership. By developing top destinations in partnership with states, enhancing medical tourism through the ‘Heal in India’ initiative, and introducing visa reforms, India is strengthening its appeal as a world-class travel and healthcare hub. 

The inclusion of hotels in the harmonized scheme and visa waivers for select foreign tourists further reinforce a comprehensive, future-ready travel ecosystem. With strategic policy alignment and private sector collaboration, this budget paves the way for India to become a more accessible, competitive, and thriving global destination.

The Finance Minister has demonstrated that the Government holds the pulse of the nation and has tried a bold yet balancing act by increasing the income tax threshold to 12 lakh, says Kumarmanglam Vijay, Partner at JSA Advocates & Solicitors.

This move provides relief to the middle class, boosts consumption by injecting liquidity thereby helping the GDP, reducing compliance and the feeling of unjust treatment of salaried taxpayers - all in a single step. By focusing on decriminalising various provisions and increasing the threshold on interest and rental income, not taxing the deemed rent on self-occupied properties up to two properties, it also helped the senior citizens who were forced to claim refunds resulting in interest cost to the Government and feeling of injustice amongst the taxpayers. 

By focusing on various rural and agricultural schemes focusing on exports and import substitution of oil seeds and pulses, formulating a presumptive tax scheme for non-resident suppliers to electronics manufacturing, and extending tax holidays for certain activities in IFSC and sovereign investment, it has tried to address specific issues that may help the country sector specific issues and imbalances.

The increase of limit from 74% to 100% should not just be viewed as an incremental 26 percentage points, says Balamurugan Shanmugam, Chief Investment Officer at Aviva India. 

This is rather a paradigm shift. This is expected to bring in more players and more capital from existing players supporting IRDAI’s vision of “Insurance for all by 2047.” In addition to brining in much-needed FDI into the country, this will also bring in better technical capabilities and new propositions for the overall benefit of the customers. 

As the economic survey pointed out, out of the total FDI received in Apr-Sep’24 period, 12% came into Insurance sector. This was a result of the previous increase in FDI limit from 49% to 74% in 2021.

Contributing to India’s goal of achieving ‘Insurance for All by 2047,’ the decision to raise FDI in insurance to 100% will drive greater capital infusion into the sector. This move will not only deepen investments but also foster innovation, enhance competition, and accelerate insurance penetration. We welcome this progressive reform, which aligns with our commitment to delivering greater financial security to Indians. With strengthened investment, the industry can further drive digital transformation, develop customer-centric solutions, and expand its reach to those who need it most, says Prashant Tripathy, MD & CEO at Axis Max Life Insurance.

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, says Aasif Malbari, Chief Financial Officer at Godrej Consumer Products Ltd.

Overall, the Budget lays a strong foundation for a more consumption-driven economy, creating significant growth opportunities for the FMCG industry.

The Budget 2025 marks a significant step towards economic prosperity by driving consumption, investment, and real estate growth. It presents a progressive approach to real estate and homeownership, reinforcing India’s aspirations for financial growth and stability, says Arvind Nandan, Managing Director, Research & Consulting at Savills India.

By ensuring a more streamlined approach to taxation, the government has strengthened household purchasing power, potentially driving demand for both primary and secondary housing markets. Additionally, long-term capital from insurers can fuel affordable housing and smart city initiatives, making real estate a more attractive investment avenue.

The National Geospatial Mission, linked to PM Gati Shakti Yojana, will enhance urban planning, infrastructure development, and land record transparency, reducing disputes and boosting investor confidence. Moreover, the expansion of the SWAMIH-2 Investment Fund is a major boost for India’s real estate sector, particularly in addressing stalled housing projects and supporting middle-class homebuyers. With an additional ₹15,000 crore allocation, the initiative will help unlock stuck inventory, stabilize property prices, and increase the supply of affordable housing, benefiting both developers and homebuyers. Further, the approval of 100% FDI in insurance is set to boost the BFSI sector, which will augment the demand for office real estate in the near future.

The new income tax slabs and rebates have pushed up the annual incomes free from taxation from 7 lacs to 12 lacs. This is a big relief to the middle and lower middle class in terms of higher savings, which should drive consumption. The government has increased the capex expenditure to 11.20 lakh crores, which should be positive for the Investment cycle. Overall, the govt has been able to take care of the investment cycle and prop up consumption, says Aniruddha Naha, CIO Alternatives at PGIM India Alternatives

The Budget has provided a significant boost to the MSME sector by significantly raising the thresholds for capital investment and turnover criteria for classification as Micro, Small, or Medium enterprises, said K.V. Srinivasan, Executive Director and CEO at Profectus Capital Private Limited. 

Combined with the enhanced credit guarantee scheme, this move is expected to drive increased capital investment. This would help MSMEs to modernise and expand their operations. Improved credit flow for startups is also a very welcome move. With the personal tax burden also coming down sharply, the increased consumption power should also help increase the overall demand for goods and services from MSMEs.

The Union Budget 2025-26 charts a transformative path toward ‘Viksit Bharat’ with a balanced focus on economic growth, social welfare, and structural reforms. With strategic investments in infrastructure, power, financial services, and urban development, the budget fosters long-term economic resilience. Strengthening MSMEs, manufacturing, and agriculture reflects its commitment to inclusive prosperity. Incentives for research, AI, and startups position India for global leadership in innovation. Tax relief for the middle class and simplified compliance frameworks further reinforce a pro-growth, investment-friendly, and forward-looking economic vision, says Ajit Mishra, SVP, Research at Religare Broking Ltd.

The Union Budget 2025-26 represents a significant milestone in the direction of accessible and affordable healthcare. The establishment of daycare cancer treatment centres in each district hospital, with 200 for FY 2025-26, will facilitate early diagnosis and treatment. Thirty-six life-saving drugs included in the exemption list for full customs duty and concessional rate of duty on bulk drugs will guarantee price affordability for the treatment of cancer and rare and chronic diseases. The strengthening of medical tourism under the ‘Heal in India’ initiative, in collaboration with private healthcare, will help make India a global healthcare destination. Thus, the budget takes a forward-looking view on public health, with accessibility, affordability, and innovation as the pillars, says Dr. Sameer Bhati, Director of Star Imaging and Path Lab Pvt. Ltd.

The two key themes that came out of the financial sector reforms have been around deregulation and ease of doing business. Deregulation through increased insurance FDI norms, NABfid credit enhancement for corporate bonds, pension regulatory reforms, light touch regulatory framework and ease of doing business through reforms around revampes kyc registry and speedy merger approval process are some examples of how the announcements are driven across these two themes as articulated in the economic survey. says Vivek Iyer, Partner and Financial Services Risk Leader at Grant Thornton Bharat.

The Finance Minister’s announcement regarding access to global best practices for farmers is a significant step towards modernizing Indian agriculture. This initiative has the potential to not only improve yields and farm incomes but also strengthen the connection between agriculture and healthier food systems for generations to come. This link between agriculture and health is a great way to enhance a dual focus on productivity and health; and this also provides greater opportunities for Indian and foreign businesses for more technical cooperation, says Sameer Sah, Partner at Khaitan & Co

Budget 2025 announces reforms in the agriculture sector including Dhan Dhanya Krishi Yojna, high yield seed varieties, and crop diversification to allow for greater produce and creation of employment. This helps farmers achieve self-sufficiency and reduce migration. These measures will allow for higher export of produce outside India and boost cross-border trade, and ultimately limit migration to metro cities, says Moin Ladha, Partner at Khaitan & Co.

The Union Budget focused on economic expansion, infrastructure development, MSMEs, futuristic cities, and middle-class welfare and brings substantial relief for the middle class. It also aims to stimulate rural consumption - an essential step toward unlocking India’s economic potential, said Anuj Puri, Chairman at ANAROCK Group.

From a real estate perspective, the budget delivers both direct and indirect benefits, acting as a catalyst for growth. However, a notable shortfall was the absence of major announcements for the affordable housing sector, leaving stakeholders disappointed.

Despite this, the budget overall remains strong and growth-oriented, with a clear focus on economic development and enhanced consumption.

The Union Budget has struck the right chord balancing the fiscal prudence with supporting the slowdown in private demand. The re-emphasis on fiscal consolidation roadmap over the next few years too remains comforting for the markets, says Upasna Bhardwaj, Chief Economist at Kotak Mahindra Bank

Tax collections is aimed at increasing mainly paid by above ₹12L income earners in personal income tax & by corporate sector who is assumed to earn more due to GDP growth assumed at 10.1%, said Deven Choksey, MD, KRChoksey. 

GST collections will increase also because higher savings in hands of below ₹12L income earners, will lead to higher spending, leading to higher GST collections . 

There is good news for taxpayers as there are major Personal Income Tax Reliefs in Budget 2024, says Amit Maheshwari, Tax Partner at AKM Global, a tax and consulting firm. 

The recent budget introduces significant tax relief measures, reducing compliance burdens and enhancing savings for individual taxpayers. A key highlight is the exemption from income tax on earnings up to ₹12 lakh, providing substantial relief to the middle class. Additionally, the TDS exemption limit for rent payments has been raised to ₹6 lakh, while senior citizens will benefit from the doubling of the TDS threshold on interest income to ₹1 lakh, easing their tax obligations.

Homeowners will also see relief, as two self-occupied properties can now be claimed with Nil Gross Annual Value (GAV) without conditions, reducing the tax burden on property ownership. To facilitate tax compliance, the window for filing updated returns has been extended from two to four years, allowing taxpayers more time to rectify past filings. Furthermore, students seeking education abroad will benefit from the removal of TCS on education loans, making foreign studies more financially accessible.

These reforms collectively aim to simplify tax processes, ease compliance requirements, and provide greater financial flexibility to taxpayers, ensuring a more taxpayer-friendly system.’

Stocks related to agriculture surged up to 13% after Finance Minister Nirmala Sitharaman announced PM Dhan-Dhaanya Krishi Yojana, covering 100 districts with low yields, modern crop intensity and below-average credit parameters.

Beyond brief mentions of boosting EV battery manufacturing, and climate resilience in agriculture, the Budget falls short of delivering the bold and comprehensive climate action India urgently needs, says Harjeet Singh, Climate Activist and Founding Director, Satat Sampada Climate Foundation. 

It lacks a renewed commitment to scaling up renewable energy, tackling deadly air pollution, restoring ecosystems, and safeguarding communities on the frontlines of the climate crisis. With worsening environmental degradation and escalating climate threats, we need decisive, transformative action—not fragmented gestures.

The Union Budget 2025-26 carries forward the push towards Ease of Doing Business, while promoting Agriculture, MSME, Healthcare, Dr. Jaijit Bhattacharya, president of Centre for Digital Economy Policy Research said. 

There is no one large announcement but a series of critical initiatives impacting investments into the economy, both foreign and domestic. Sticking to the downward glide path of fiscal deficit and targeting 4.4%, will help keep inflation at check, while instilling further confidence in investors. 

The initiatives on Ease of Doing Business, especially moving towards a trust based governance, will help further unshackle up the entrepreneurial spirits of the country. Continued focus on building large industries such as Ship Building, Energy, Nuclear power etc would help lift the MSMEs and propel the economy. 

These are obviously multi-year initiatives but provides a good indication of the intent of the government in various sectors. Personally, I would have like to see some budgetary allocation on reducing pollution, especially air pollution. Overall, this is a budget in continuity, making life easier for people and businesses, supporting the vulnerable sections of the society and helping in building investor confidence.