Post-Budget 2025: Insights and Reactions from Experts

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Anirudh A. Damani, Managing Partner, Artha Venture Fund

This budget is nothing short of transformative—it covers a wide spectrum of critical areas, from tax simplification to deep-tech investments, infrastructure, and energy expansion. The increase in income tax exemption to ₹12.75 lakh is a bold, economy-igniting move that puts more money in the hands of salaried individuals, fueling consumption and economic momentum. The renewal of the ₹10,000 crore Fund of Funds and the focus on deep-tech funding will provide much-needed capital to early-stage ventures and India’s next wave of innovation. The increased allocation for nuclear and power sectors, alongside massive infrastructure CAPEX, signals that this budget isn’t just about the next year—it is about building a globally competitive India by 2047. This is the first full-fledged budget of the Modi government’s third term, and it has delivered on the needs of the economy, startups, and investors alike. The next big moment to watch will be the income tax bill set to be tabled next week, which could further revolutionize India’s tax system. Overall, this budget sets the foundation for sustained, long-term economic growth, and we at Artha Venture Fund are supremely excited about the future it promises.”

Manish Jain, Director , Institutional Business  

Overall, positive for FMCG, Consumption, Retail, Realty, Auto and new age companies. Not as much positive for banking. Rise in gross borrowings is negative for banks as yield could rise which could impact treasury income. Fiscal deficit target at 4.8% for FY25, and 4.4% of GDP for FY26. With rationalization in direct taxes, one needs to see how government capex targets are set. Move in personal taxes and reduction in BCD in consumer electronics (like flat panel) to boost consumer electronics. Positive for shipbuilding with Maritime Development Fund outlay of Rs 25000, exemption of BCD on raw material and equipment and benefits to ship leasing units announced if they are in GIFT city. Announcements on PM Gati Shakti Data and Maps are positive for logistics players. Announcement of daycare cancer centres in district hospitals is positive for regional diagnostics companies. Promotion in medical tourism is positive for large hospitals. Increase in FDI limit in insurance sector to 100% is positive for investments in the sector. Positive move on critical minerals and BCD exemption for EV batteries to promote EV battery manufacturing in India and also positive for battery chemical manufactures.

Manish Chowdhury, head of research, StoxBox

Amidst darkening clouds of global uncertainty and early signs of slowing economy, consumption and corporate earnings, the budget has delivered on expectations of reviving economic growth through a slew of measures along with treading a path of fiscal prudence by setting a fiscal deficit target of 4.4% for FY26. The key highlight of the budget was relief for the middle-income class through tax relief, with measures aimed to increase the disposable income and boosting consumption. The government’s capex allocation of Rs. 11.21 lakh crores in FY26 (vis-à-vis Rs. 10.18 lakh crores in FY25 RE) and efforts to align it into the most productive areas of the economy such as roads, railways, airports and infrastructure through 5-year planning is likely to have a multiplier effect and help accelerate capital formation in the economy. The intent to make these efforts percolate deep into the economy through close coordination with states (interest free loans), higher efforts towards simplifying ease of doing business (lowering TDS and TCS, decriminalization of about 100 laws) and incentives to drive investments (insurance, shipping) bode well for the long term. To sum it up, “no bad news is good news” is the essence of today’s budget and has the right ingredients to drive home the theme of predictability and conservatism from the government.

Koteswararao Anne, Dean of MPSTME, NMIMS Mumbai

The establishment of a Centre of Excellence in AI for Education marks a transformative step in India’s educational landscape. This initiative strategically aligns with the National Education Policy 2020’s vision of achieving 50% Gross Enrollment Ratio by 2035. By leveraging AI, India can revolutionize rural education through intelligent tutoring systems and vernacular language processing, making quality education accessible in remote areas.

The 500 Crore investment will catalyze personalized learning pathways for unemployed youth, offering targeted skill development programs aligned with industry demands. AI-driven analytics can identify regional skill gaps and customize training modules, potentially impacting crores of youth across India’s diverse socio-economic spectrum.

This initiative perfectly complements NEP 2020’s emphasis on multidisciplinary education and digital literacy. The potential to integrate AI with traditional teaching methods could significantly improve learning outcomes while preserving India’s rich educational heritage, positioning India as a global leader in educational technology and creating an inclusive, future-ready educational framework.

Sagnik Bagchi, Assistant Professor, Economics 

The stock market response has been mixed and been cautious. Initially, after days of high volatility, the Indian stock market has responded well to the budget proceedings. NIFTY50, NIGTY Bank, FINNIFTY and other indices of the Indian market have shown an increase but goes down by about 2-3%. The announcement of increasing no income tax slab has just moved the mood of stock market cautiously upward but yet to gain back the initial momentum.
The sustained focus on capital expenditure by Government of India has created a positive momentum for infrastructure and its related sectors. Key sectors like insurance, energy and power, banks, FMCG had a positive impact. The market also witnessed fluctuations of 2-3% depicting a cautious approach.

Prakarsh Gagdani, CEO, Torus Digital

Increased money in the hands of taxpayers will drive more consumption. A portion of that might flow to the capital market but not substantially.

Secondly, retail participation in markets is any way at an all-time high. Markets will show growth more from corporate earnings, and overall growth in the economy and not from domestic money flowing into capital markets.

Neha Chhabra, Associate Professor, Financial Modelling

The Union Budget 2025 marks a strategic step toward realizing the vision of Viksit Bharat (Developed India) by fostering fiscal prudence, sustainable economic growth, and workforce development through education and technology. Anchored around four key economic engines—Agriculture, MSMEs, Investment, and Exports—the budget sets a strong foundation for long-term economic resilience and global competitiveness. A major thrust is also given to exports, with a focus on Digital Public Infrastructure, MSME support, and fiscal policies designed to enhance India’s global competitiveness. The Critical Minerals Development Scheme will be instrumental in ensuring raw material security for key industries, boosting international trade prospects. The budget’s personal income tax relief measures and reductions in customs duties, particularly for essential goods such as life-saving drugs, will further stimulate consumption and economic expansion.

For the MSME sector, the budget introduces targeted reforms, including enhanced credit guarantees, support for first-time entrepreneurs, and incentives for innovation-led growth. With schemes like Startup India and the Startup India Seed Fund, the government is fostering an entrepreneurial ecosystem that will create jobs, stimulate domestic industries, and enhance economic diversification. These measures will strengthen the MSME backbone, which contributes nearly 30% to India’s GDP and plays a crucial role in employment generation.

C.S. Vigneshwar, President 

The Union Budget 2025-26 is a well-balanced and growth-oriented budget that prioritizes middle-class spending, rural prosperity, and MSME empowerment. The increase in the income tax exemption limit to ₹12 lakh will directly boost demand for two-wheelers, passenger vehicles, and EVs, as consumers have more disposable income to upgrade their vehicles.

For the rural economy, the Dhan Dhanya Krishi Yojana, benefiting 1.7 crore farmers, along with the Kisan Credit Card loan limit expansion, will drive demand for tractors, small commercial vehicles, and two-wheelers. MSMEs, which form the backbone of the economy, are set to thrive with higher credit limits, enhanced fund-of-funds for startups, and new financing options—a move that will also encourage the expansion of auto dealerships and fleet businesses.

The National Manufacturing Mission and incentives for solar, EV batteries, and clean mobility infrastructure will accelerate the growth of the EV sector while making India a global hub for sustainable mobility. Additionally, the increase in FDI for insurance to 100% will bring more competition and innovative financing options for auto buyers, further stimulating demand.

FADA welcomes this progressive budget, which will fuel India’s auto retail sector across rural, urban, and electric vehicle segments, supporting the vision of ‘Viksit Bharat’ and sustainable mobility. – Mr C S Vigneshwar, President – Federation of Automobile Dealers Association (FADA).

Aasif Malbari, Chief Financial Officer

“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.

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

Dhimant Bakshi , CEO of Imagicaaworld

“In the recent Union Budget 2025, the government has made key strides to positively influence both consumption and the entertainment sector. With the introduction of changes in direct taxation, there is an increase in disposable income for middle and lower-income groups, which is expected to result in a boost in overall consumption. This shift is an encouraging signal for industries like entertainment, where a stronger consumer spending power is crucial.

However, to truly amplify the growth of outdoor and indoor recreational entertainment, including theme parks, water parks, amusement parks, and family entertainment centers (FECs), it is essential that the government reconsiders the Goods and Services Tax (GST) structure. Currently, these sectors are taxed under higher GST slabs, which can inhibit affordability and limit access, particularly for middle and lower-middle-class families who would benefit the most from these experiences.

Reducing the GST rate for these sectors to lower slabs would not only make these recreational activities more affordable but would also allow for increased participation, especially among the mass consumer base. More importantly, it would directly support mental well-being by promoting stress relief and overall happiness—two significant factors contributing to public health and productivity.

This shift in taxation aligns with the government’s goal of fostering social well-being and economic inclusion, ensuring that access to entertainment becomes a viable option for a larger segment of society. By bringing down taxes on recreational services, we can stimulate economic growth, improve happiness, and reduce stress, benefiting individuals, families, and the economy as a whole.”

Prashant Sharma, President, NAREDCO Maharashtra

“The Union Budget 2025-26 has emphasized economic growth and inclusive development, but the absence of specific measures for the real estate sector is a major disappointment. While the ₹1 lakh crore Urban Challenge Fund is a step in the right direction to transform cities into growth hubs, the sector was expecting direct incentives such as industry status, single-window clearances, and increased tax benefits for homebuyers.

The increase in the income tax exemption limit to ₹12 lakh per year is a significant relief for the middle class. This will not only improve disposable incomes but also provide a much-needed boost to affordable and mid-income housing projects, encouraging homeownership. Moreover, the rationalization of TDS and the relief provided to the middle class through tax reductions will further boost spending power, indirectly benefiting housing demand.

A notable highlight is the progress under SWAMIH which has completed 50,000 homes in stressed projects and will deliver 40,000 more in 2025, easing financial strain on homebuyers. The ₹15,000 crore SWAMIH Fund 2 will accelerate the completion of another one lakh homes, benefiting middle-class families and boosting market sentiment.

Additionally, the announcement of a new Fund of Funds (FoF) with an expanded scope and fresh contribution of ₹10,000 crore will have a spillover effect on the start-up ecosystem and may drive innovation in PropTech, enhancing technology-driven solutions in real estate and improving efficiency in project execution and homebuying experiences.

However, we urge the government to consider targeted interventions to address liquidity concerns, expedite approvals, and create a more robust framework for real estate investments.”

Rohan Khatau, Director, CCI Projects

“The increased infrastructure spending and PPP initiatives are welcome moves that will facilitate urban development. However, the real estate sector was expecting much-needed reforms in stamp duty rationalization, higher home loan interest deductions, and incentives for rental housing. While the rationalization of TDS and higher exemptions for the middle class will provide liquidity, a more direct stimulus to the sector could have accelerated investment and demand. We hope the government considers mid-year policy interventions to support real estate growth.”

Vikas Sutaria, Founder, Irah Lifespace

“The budget once again misses the opportunity to introduce dedicated incentives for NRIs and HNIs, who play a crucial role in the luxury housing segment. Streamlining taxation policies and easing investment norms for these investors could have significantly boosted investments in this segment. The rationalization of TDS and tax relief for the middle class will improve disposable incomes, indirectly benefiting housing demand. The Urban Challenge Fund will help in urban renewal, but specific measures to encourage luxury and second-home investments were needed. While the government’s commitment to infrastructure and PPP-driven development is commendable, the lack of direct incentives for real estate is disappointing.”

Abhishek Jain, COO, Satellite Developers Private Limited (SDPL)

“The budget’s focus on infrastructure and PPP-driven urban transformation is a positive step, but the real estate industry was expecting more direct support. The rationalization of TDS and tax benefits for the middle class will improve disposable incomes, which could have an indirect positive impact on housing demand. However, critical issues such as liquidity constraints, high taxation, and policy bottlenecks remain unaddressed. A more comprehensive real estate policy would have further accelerated sectoral growth.”

Shridhar Venkat, CEO, The Akshaya Patra Foundation

Shridhar Venkat has over 25 years of professional experience and has worked with leading multinationals, including Philips, ABB and Webex Communications (now CISCO). Before he joined The Akshaya Patra Foundation in search of existential purpose in life, he was the VP – Sales at Webex Communications. He holds a Bachelor’s Degree in Engineering and a Master’s Degree in Management. He is an Eisenhower Fellow for innovation, a graduate of the Advanced Management Programme from the Wharton Business School and a recipient of the Mother Teresa Social Leadership Scholarship. At Akshaya Patra, he brings to the table strong people management and organisation skills. He believes that it is important to blend missionary spirit and professionalism to deliver value.

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