Finance Minister Nirmala Sitharaman today presented her 8th consecutive budget that included key measures that will alleviate burden on India’s middle class grappling with soaring prices and sluggish salary growth. Earlier, according to the Economic Survey presented on January 31, 2025, Indian economy is likely to grow at 6.3% to 6.8% for financial year 2025-26. The FY25 union budget announced major changes in custom duties and exemptions across several sectors.
Nirmala Sitharaman also announced that as per the new tax regime, individuals earning up to Rs 12 lakh would no longer have to pay taxes. If individuals are fetching incomes up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers with basic deduction of Rs 75,000), the latest tax slab will give nil income tax. Meanwhile, Prime Minister Narendra Modi hailed Buget 2025 and called it a “people budget” that will give a boost to investment and pave way for “Viksit Bharat” goal.
Meanwhile, leading industry experts, economists, fund managers shared their reactions to Budget 2025:
- Motilal Oswal, Group MD & CEO, Motilal Oswal Financial Services Ltd on Finance sector: “overall budget as manage a fine balance between growth and fiscal prudence. Fiscal deficit is packed at 4.4% below the long term target of 4.5% which will be positive for the economy. Budget has focused on key areas like rural farmers low income which will boost consumption both in the near term as well as long term and help in reviving the economic growth. Overall capex spending planned at 11.2 lakh crore is inline with market expectation. Focus on MSME manufacturing will also be positive for several sectors. Sectorial budget would be positive for consumption driven sectors like FMCG , auto footwear etc.She delivered six in the last over by reducing the income tax on the middle class. I remain positive in the medium to long term.”
- Pratik Shah, Financial Services Leader, EY India: “Simplifying KYC processes is a step in the right direction that will help streamline and bring down costs of customer acquisition significantly. The 100% FDI limit in insurance will open doors for foreign players who, with their knowhow of products, can foster deeper market penetration. NaBFID’s impact on infrastructure financing is pivotal, addressing a longstanding gap where many organizations lacked internal capacity for underwriting such projects. NaBFID’s partial credit guarantees, will help create fillip in infrastructure financing space. Moreover, the launch of the Digital Public Infrastructure (DPI) will be transformative for trade and supply chain finance, acting as a digital enabler similar to UPI. This shift will dramatically reduce costs, accelerate transaction speed, and unlock strategic opportunities to capitalize on the rapidly evolving trade finance landscape.”
- Amit Koshal, Co-founder & CEO of TWID:“Budget 2025 marks a transformative shift in consumer empowerment, with increased disposable incomes driving smarter spending and a greater focus on value. With the rebate limit under Section 87A raised to Rs 12 lakh and a standard deduction of Rs 75,000, salaried individuals will see a significant reduction in their tax burden, putting more money in their hands. As digital payments continue to grow, this higher disposable income will enable consumers to maximize every rupee spent, reshaping spending patterns.”
- Suresh Darak, Founder, Bondbazaar: “In a challenging economic environment with slowing GDP growth, the budget could have taken a prudent approach by fiscal expansion rather than fiscal consolidation, reducing the fiscal deficit from 4.8% in FY25 to 4.4% in FY26. While this reflects a commitment to financial stability, a stronger push on capital expenditure could have further strengthened employment, business growth, and overall economic activity.”
- Kunal Varma, Co-Founder and CEO, Freo – Insurance sector: “The government’s decision to increase FDI in insurance from 74% to 100% is a transformative step. This policy balances global capital and expertise with domestic economic interests. We expect it to attract global players, foster competition, drive innovation, and make insurance more affordable and accessible. The influx of foreign investment will also catalyze digital transformation, aligning with our vision of leveraging technology for seamless financial solutions.”
- Vishal Jain, CEO, Manipal Business Solutions – BFSI sector: “The government’s initiative to revamp the Central KYC Registry in 2025 marks a transformative leap toward a more efficient and seamless compliance process. By streamlining the KYC framework, this move will eliminate redundancies, accelerate digital onboarding, and further enhance financial inclusion. With technology at the forefront, automation and AI-powered solutions will drive real-time compliance, minimizing friction for both financial institutions and customers. This visionary step lays the foundation for a more secure, transparent, and agile financial ecosystem in India, empowering progress and trust across the sector.”
- Sagar Shah, Head – Domestic Markets, RBL Bank: “The budget continues on its roadmap of fiscal consolidation. The Government walked the path of fiscal prudence and lowered next year’s fiscal deficit target to 4.4 % vs current year’s 4.8% without loosing focus on growth. Along with that focus on consumption to promote growth and tax simplifications are the biggest highlights of this budget. Much wanted consumption boost for the middle class has been provided to support growth. Overall, a highly constructive budget with a new tax code will take care of the tax payer’s concerns.”
- Mihir V Shah, Executive Director, Vipul Organics Limited: “It is a fabulous budget with the focus on meeting the aspirations of the booming middle class. The Manufacturing Mission that the Hon’ble minister has set up will further the cause of Make in India and boost domestic manufacturing. Extending the Credit Guarantee Scheme for facilitating term loans for purchase of machinery and equipment without collateral or third party guarantee, to the MSMEs for up to ₹100 crore, is a welcome step and will ease the credit requirements of the sector. Structural reforms that focus on ease of doing business, especially with regards to time limit for Provisional assessments and TCS/TDS compliances are also a welcome step.”
- Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Limited (RSBL): Finance Minister has announced a populist Union Budget 2025 with a main aim to continue growth momentum of the Viksit Bharat. There have been no announcements on Gold and Silver Import Duties as market expected. There are few things specified in the finance bill about increase in tariffs on gold and silver, which is not clear, so we will have to wait for DGFT notifications.
- Alekh Yadav, Head of Investment Products at Sanctum Wealth: “The current budget has shifted its emphasis on infrastructure and manufacturing in previous budgets to a more consumption-driven approach. While this shift was somewhat expected, the larger-than-anticipated reduction in personal income tax could help support the recovery of consumption demand. The trade-off is lower than expected capital expenditure allocation. The budget also prioritizes the rural economy by supporting agriculture and strengthens MSMEs through reclassification and expanded credit access. Additionally, the government has signalled upcoming regulatory reforms aimed at improving the ease of doing business.”
- Anurag Mittal, Head of Fixed Income at UTI AMC: “The budget continued the path of inclusive development by boosting personal spending while continuing the trajectory of fiscal consolidation. The borrowing number is marginally higher than bond market expectations as Government has not kept any short-term borrowings. This is more positive for short to medium end of the yield curve. The road map of debt/gdp to 50% by 2031 is positive from a medium-term structural perspective.”
- Saily Lad- CEO & Founder of Volksara Techno Solutions: “The Union Budget 2025, introduces pivotal reforms that promise to accelerate growth in sectors critical to India’s development. The enhanced investment and turnover thresholds for MSMEs and startups will empower businesses to scale operations and drive innovation. Notably, the substantial allocation for smart city initiatives underscores the government’s commitment to urban transformation. This focus aligns seamlessly with our mission at Volksara Techno Solutions, where we specialize in integrating advanced technologies into urban infrastructure to create safer, more efficient, and sustainable cities. Additionally, increased funding for healthcare and education technology will enable us to further our efforts in delivering cutting-edge solutions that enhance public services and quality of life. These strategic investments not only bolster the technology sector but also pave the way for a more connected and prosperous India.”
- Sanjay Dighe, CEO & Whole-time Director of Krystal Integrated Services Ltd: “The Union Budget 2025-26 promotes infrastructure growth, urban development, and skill enhancement. These have been the growth drivers for the facility management sector. The push on PPP projects and tier-2 city growth offers new avenues for public-private collaboration and economic growth. The ₹1.5 trillion interest-free loans and ₹1 trillion Urban Challenge Fund will accelerate infrastructure development, boosting demand for facility management services. The establishment of five national skilling centers will strengthen the talent pool, essential for high-quality services.
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