Budget 2025 haa been presented, and there is quite some buzz about different income tax cuts, import duty cuts and more. How did the business leaders and fonders, CEOs find this budget?
Here are the major highlights:
Mr. Vikas Jain, Chief Advisor, Financeseva.COM and Constrique.com
The Union Budget 2025 is a visionary step towards empowering the middle class and bolstering MSMEs, laying the groundwork for inclusive economic growth. Historic measures like zero tax up to ₹12 lakh income, enhanced MSME loan guarantees up to ₹10 crore, and the National Green Hydrogen Mission reflect a bold approach to improving disposable incomes, driving business expansion, and promoting sustainability. Additional tax reliefs on second self-occupied properties and higher TDS thresholds on rent further ease financial burdens, making this a truly transformative budget for India’s growth story.
Dr. Jyotsana Singh, Associate Dean, Computer Engineering/ School of Technology Management & Engineering, NMIMS Chandigarh
The establishment of a ₹500 crore Centre of Excellence in AI for Education is a landmark step towards integrating artificial intelligence into the learning ecosystem. This initiative will revolutionize curriculum development, enable adaptive learning, and foster research-driven pedagogy. AI-powered tools will enhance personalized learning, bridging gaps in accessibility and skill-building across disciplines. With India producing over 1 million STEM graduates annually, this investment ensures our workforce remains globally competitive. The Centre’s interdisciplinary approach will catalyze innovations in digital classrooms, assessment models, and teacher training, fostering a future-ready education system. By embedding AI in education, we are not only enhancing learning outcomes but also preparing students to navigate an AI-driven economy with confidence and competence. This move underscores the government’s commitment to leveraging AI for inclusive and sustainable education.
Ms Sonali Chowdhry, CEO- Officenet
The Union Budget 2025 highlights the government’s commitment to strengthening India’s workforce, a crucial factor in making the country a global manufacturing powerhouse. The introduction of the National Centers of Excellence in Skilling will equip workers with specialized skills, enhancing employability and productivity across industries. Additionally, the budget provides good support for gig employees, ensuring better protections and opportunities for this growing workforce segment fostering a more inclusive labour market.
With strong backing for MSMEs, agriculture, and overall economic growth, the budget creates opportunities for businesses to scale efficiently while ensuring workforce readiness. As India aims to be a global manufacturing leader, HRMS providers will play a key role in streamlining workforce management, optimizing productivity, and bridging skill gaps through digital solutions.
Gagan Preet Singh Malhotra, Director, Wybór
The Union Budget 2025 presents a balanced approach, offering relief to the middle class through the new tax regime while taking some positive steps for the consumer electronics industry. However, more could have been done to stimulate demand and address key challenges in the sector.
Encouraging Indian Manufacturing
One of the most welcome moves is the increase in customs duty on Interactive Flat Panel Displays (IFPD) from
10% to 20%. This change will significantly benefit Indian manufacturers like us, as the majority of IFPDs were being imported. The higher duty will encourage local production, reduce reliance on imports, and strengthen India’s position as a manufacturing hub for interactive displays.
Additionally, the reduction in customs duty on parts of open cells used in Smart TVs is a positive step. However, the actual benefit to end users is minimal, with an estimated cost reduction of less than $1 on a 32-inch TV. This falls short of the industry’s expectations, as we were hoping for a more substantial impact.
The Need for GST Rationalization in Consumer Electronics
A major concern that remains unaddressed is the high Goods and Services Tax (GST) on LED TVs of 40 inches and above. Currently taxed at28%, these televisions are no longer a luxury item but a household necessity. Despite the shrinking overall demand for LED TVs, the budget did not provide any relief in this regard. In contrast, high-end refrigerators priced at ₹3 lakh and above attractonly18%GST, whereas a 40-inch LED TV priced at ₹12,000 is taxed at 28%.This disparity needs to be corrected to make smart TVs more accessible to consumers.
Similarly, Room Air Conditioners (RACs) continue to fall under the 28% GST bracket, making them unaffordable for many lower-middle-class families. Given the increasing global temperatures and record-breaking heatwaves, air conditioning is becoming a necessity rather than a luxury. A reduction in GST to18% for1-tonand1.5-ton ACs would have provided much- needed relief, allowing more families to access comfortable and healthy living conditions.
A Missed Opportunity for Consumer Demand Boost
While the budget takes steps to encourage domestic manufacturing, it falls short in boosting consumer demand. Reducing GST on essential electronics like LED TVs and air conditioners could have led to increased sales, benefiting both consumers and the industry. The declining demand for LED TVs is a red flag, and urgent action is needed to reverse this trend.
Final Thoughts
Overall, Budget 2025 is an average one for the consumer electronics industry. While there are some positive aspects, such as promoting domestic manufacturing, the government missed an opportunity to make electronics more affordable for Indian households. A more consumer-centric approach with rationalized GST rates could have driven growth and ensured that essential appliances reach a larger section of society. The industry will continue to push for these necessary reforms, hoping that future policy decisions address these critical concerns
Subhasis Majumdar – Managing Director – Vertiv
The Union Budget 2025 marks a transformative milestone in India’s journey towards becoming a global leader in manufacturing, technology, and innovation. We welcome the Government’s renewed focus on manufacturing through the National Manufacturing Mission, a key initiative that positions India to lead on the global stage. By focusing on building domestic capacities, integrating into global supply chains, and forming industry facilitation groups, this mission is set to significantly boost businesses and propel the ‘Make in India’ vision forward. Moreover, the integration of Industry 4.0 will unlock new opportunities by harnessing the immense potential of our youth’s skills and talent, laying the foundation for a more competitive, self-reliant India.
The Budget’s commitment to transformative reforms, particularly in the power sector, aligns perfectly with India’s ambition to enhance its global competitiveness. These efforts, coupled with a modern regulatory framework and a continued focus on ease of doing business, are vital to creating an environment where innovation and enterprise can flourish. This is a win for domestic production, a leap toward a greener future, and an essential step in establishing India as a global economic powerhouse.
Furthermore, the strategic investment in skilling, AI, and technological innovation is a testament to India’s commitment to nurturing talent and maintaining its edge in the digital revolution. The establishment of National Centres of Excellence for skilling and the PM Research Fellowship scheme for IITs and IISc will ensure India remains at the forefront of global advancements in AI and deep tech. As we move forward, this budget sets the stage for a more dynamic, inclusive, and innovation-driven India—ready to lead the world in the digital and technological age.
Ravin Saluja, director with STERLING AGRO INDUSTRIES LIMITED( Nova Dairy Products )
The increase in the Kisan Credit Card (KCC) loan limit from ₹3 lakh to ₹5 lakh is a commendable step towards strengthening financial support for India’s 7.7 crore farmers, including those in the dairy sector. Access to higher credit at subsidised interest rates will enable dairy farmers to invest in better livestock, improve farm infrastructure, and enhance productivity. This initiative will not only support rural livelihoods but also contribute to the growth of the dairy industry, ensuring a stable and self-reliant supply chain. The enhanced loan cap within the revised interest subvention scheme further reduces financial strain, empowering farmers to meet rising operational costs. We appreciate the government’s commitment to uplifting the agricultural and dairy sectors, reinforcing India’s position as a global dairy leader.
Mr. N.P Ramesh, COO and Co-Founder of Orb Energy
With the 2025 budget announcement, Finance Minister Nirmala Sitharaman has set a clear path for India’s clean tech revolution. The National Manufacturing Mission aims to accelerate domestic production of solar cells/panels, and EV storage batteries ensuring that India not only strengthens its ‘Make in India’ vision but also becomes a key player in global supply chains. The reduction of BCD on Lithium batteries is a very welcome step, as Storage goes along with increased adoption of renewable energy.
2Alongside this, the focus on Industry 4.0 opens up exciting opportunities for our youth to lead the charge in innovation, creating a sustainable and energy-efficient future for generations to come. This is more than just a step toward economic growth—it’s a bold move to make India a global hub for clean energy solutions, driving job creation, reducing dependence on imports, and ultimately contributing to India’s clean energy goals
Mr. Rajesh Gupta, Founder & Director, Recyclekaro
The Union Budget 2025 takes a decisive step towards strengthening India’s battery recycling and manufacturing ecosystem. The exemption of Basic Customs Duty (BCD) on critical minerals like cobalt, lithium-ion battery scrap, lead, and zinc will enhance domestic resource availability, reduce dependency on imports, and accelerate value addition within India. This move aligns with India’s vision for a circular economy, fostering investment in battery recycling and EV supply chains. The addition of new capital goods for EV and mobile battery manufacturing will further boost local production and job creation.
Mr. Girish Hirde, Global Delivery Head at InfoVision
We appreciate the Union Budget 2025 announcement and believe that it balances that aspirational, futuristic growth with overall infrastructure development in the nation. The announcement of a Deeptech Fund of Funds to support technological advancements, while providing 10,000 Fellowships for tech research in IITs and IISc, under the PM Research Fellowship Scheme, is going to play a pivotal role in building national capabilities in the field of Deeptech & research. This, coupled with the establishment of Centre of Excellence for AI in Education, established with an outlay of INR 500 CR will prove to be another significant boost for indigenous capabilities and prowess. At InfoVision, we commend these developments and look forward to supporting India’s evolution as a global leader in Deeptech & AI.
Mr. Praveen Kakulte – CEO, Powercon Group
The Budget 2025 marks a crucial turning point in advancing India’s clean energy goals. The strong focus on capacity building through National Centers of Excellence of Skilling across the country is a vital step to equip the nation with the specialized skills and deep domain expertise needed to build advanced power plants and optimize energy extraction. This commitment will play a key role in achieving India’s Clean Power target of 500 GW by 2030 while maintaining cost efficiency.
With a clear roadmap in place, this budget sets the stage for India to ‘generate more GWh of energy from every installed GW of power,’ driving not only energy efficiency but also contributing to a greener, more sustainable future for generations to come. It’s an investment in both the workforce and the future of India’s energy landscape.
Mr. Srinivasa Addepalli, Founder and CEO, GlobalGyan Leadership Academy
This year’s budget places a strong emphasis on skilling, digital transformation, and industry-led workforce development, creating a solid foundation for a more competitive and future-ready talent pool. With a focus on MSME growth, the budget aims to drive employment generation and foster innovation—key catalysts for economic expansion. The establishment of National Centers of Excellence in Skilling will be instrumental in upskilling professionals, ensuring they have the capabilities needed to navigate today’s fast-evolving job market. These initiatives not only enhance workforce agility but also play a crucial role in nurturing leadership and entrepreneurship, empowering individuals to drive meaningful business and economic impact.
Parimal Heda, Chief Investment Officer, Go Digit General Insurance
The Union Budget presented by the government has provided a huge boost to the middle-class Indians with the much-awaited revision in the tax structure. The fact that this has been achieved by not diverting too much from the fiscal glide path is extremely commendable.
Here are the key takeaways for the Insurance Sector:
FDI in Insurance
From an insurance point of view, the government on expected lines raised the FDI limit for the insurance sector from 74 per cent to 100 per cent. This will give a boost to the insurance sector and lead to more global players setting shops in India, thereby improving country’s insurance penetration in the coming years.
Last-mile Insurance Connectivity
Using the sheer connectivity of India Post as a catalyst to provide varied range of services including insurance will provide a huge boost in last-mile delivery of insurance offerings, especially in tier-3, tier-4 cities and villages. Apart from utilising banks, NBFCs and microfinance institutions, insurers can now also look at leveraging technology and utilising the vast network of India Post to make various insurance offerings accessible to rural and semi-urban Indians.
Health Insurance
Announcement of Day Care Cancer Centres in all district hospitals and relief on import of 36 lifesaving drugs and medicines for various chronic diseases will also aid in hospitalization costs of such diseases coming down, providing a tertiary effect on health insurance sector as well. Bringing nearly 1 crore gig-workers under the ambit of PM Jan Arogya Yojana will provide them the much-needed insurance coverage and also lead to increase in the market size of the health insurance sector.
Boost to Tourism
Certain big announcements have also been made to boost domestic tourism in the country. Developing Top 50 tourist destination sites in the country and promoting Medical Tourism through Heal in India will significantly boost domestic tourism and health tourism and make India among the top holiday destinations globally. The announcement of modified UDAN scheme and boosting regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years will also boost the tourism economy in the coming decade. This will also have an auxiliary effect on insurance companies as demand for domestic travel insurance offerings will likely see an uptick due to increased tourism.
MSMEs: The Powerful Engine
With MSMEs being identified as one of the four powerful engines for development and the government providing significant enhancement of credit availability with guarantee cover for Micro and Small Enterprises and Startups, the insurance needs of this segment will become even more important and likely lead to increased uptake of various business-related insurance products and provide a fillip to the liability portfolio of insurance companies. The focus on MSME segment as a whole will also lead to the development of specialized insurance products tailored to their specific needs.
Fillip to EV Sector
Adding 35 additional capital goods for EV battery manufacturing to the list of exempted capital goods will provide a boost to domestic manufacturing of lithium-ion battery for electric vehicles. This will likely improve the pricing for EVs, providing a fillip to the Niti Aayog’s EV penetration target of 30-35% by FY30. This will also lead to increased demand for EV-specific motor insurance coverage as EV volumes drive up in the coming years
Tax Threshold Limit on Insurance Commission
Increasing the threshold limit for TDS/TCS for insurance commission from Rs 15,000 to Rs 20,000 will also give a boost to the income of insurance agents, leaving more money in their hands.
Bharath Aitha, Vice President of Marketing at eInfochips (An Arrow Company)
The Union Budget 2025-2026 is a forward-looking blueprint that aligns closely with India’s aspirations to become a global technology and innovation powerhouse. We are particularly encouraged by the government’s emphasis on clean tech manufacturing, R&D investments, and skill development, which are critical to driving sustainable growth and technological self-reliance.
The allocation of ₹20,000 crore for private sector-driven R&D and the proposed Deep Tech Fund of Funds are significant steps toward fostering innovation in emerging technologies like semiconductors, AI, and quantum computing. These initiatives, coupled with the focus on green energy and sustainable manufacturing, will not only accelerate India’s transition to a low-carbon economy but also position the country as a leader in global green-tech innovation.
Additionally, the budget’s focus on skilling and digital infrastructure underscores the importance of creating a future-ready workforce, especially in Tier 2 and Tier 3 cities. By bridging the digital divide and empowering underserved sectors through AI and IoT-driven solutions, this budget lays the foundation for inclusive growth and equitable access to opportunities.
Source:https://trak.in/stories/budget-2025-reactions-find-out-how-business-leaders-founders-ceos-reacted/