Author: Sujata Achary

Budget 2025: Rs 25,000 Crore for Maritime Development – Swan Defence

Vivek Merchant, Director, Swan Defence and Heavy Industries Limited:

“The Union Budget 2025-26 sends a strong message about India’s ambitions in shipbuilding and maritime infrastructure. The ₹25,000 crore Maritime Development Fund is a game-changer, signaling the government’s serious intent to make India a global hub for shipbuilding. This investment, coupled with the push for port-led development and logistics efficiency, will drive growth for companies like ours. The ₹1.5 trillion allocation for infrastructure development is another positive step, ensuring better connectivity for shipyards and ports, which is crucial for scaling up operations.

However, the industry still needs policy reforms that encourage private sector participation and reduce dependency on imports for critical components. A clear roadmap for defence shipbuilding and incentives for indigenous manufacturing will further strengthen India’s maritime ambitions. The increased defence budget allocation and emphasis on modernization present a significant opportunity for private players in the defence sector. Encouraging strategic partnerships and fostering a robust domestic ecosystem for naval defence manufacturing will be key to enhancing India’s self-reliance in maritime security.

At Swan Defence and Heavy Industries, we are excited about these developments and look forward to leveraging these opportunities to contribute to India’s self-reliance in shipbuilding, maritime defence, and overall strategic capability.”

Budget 2025: Empowering Farmers & Strengthening Supply Chains

Rohit Mehrotra, Co-founder of Organic Tattva:

The budget announced today opens on a positive note with a focus on empowering farmers. Agricultural reforms aiming to strengthen supply chains, promote balanced nutrition, and enhance food security, & indirectly curbing long-term food inflation. This will support lower yields, boosting financial sector resilience to better sustain the broader economy. The launch of six-year mission to increase pulses and cotton production, will help to reduce import dependency. The inclusion of enhanced credit guarantee coverage for small and medium enterprises and an 8% increase in subsidies for food, fertilizer, cooking gas and infrastructure development aims to boost agricultural productivity, support farmer’s financial well-being.

Budget 2025: Tax Relief Boosts Middle Class – Manappuram

 

Mr. V. P. Nandakumar, MD & CEO at Manappuram Finance Ltd

“As Prime Minister Narendra Modi wished, Goddess Lakshmi has blessed the middle class, with Finance Minister Nirmala Sitharaman announcing a large-sized tax relief for this burgeoning population segment in her eighth consecutive budget. The income tax exemption up to ₹12 lakh per annum makes immense economic sense. The tax reduction will put significant amounts of money into the hands of the middle class, whose propensity to consume and save is very high. This will considerably boost private final consumption and household savings, which will add to economic momentum.
It must be remembered that the shrinking Private Final Consumption Expenditure, was the main factor behind the moderation in economic growth in the recent months.”

Budget 2025: ESAF Bank Applauds Inclusivity Focus

K. Paul Thomas, MD & CEO, ESAF Small Finance Bank

The Finance Minister’s emphasis on inclusive development in the Union Budget 2025-26, similar to the Government’s focus, clearly articulating ‘Inclusivity’ as the guiding principle, is highly welcome.

Initiatives such as the Grameen Credit Score, the enhancement of the KCC loan limit from ₹3 lahks to ₹5 lahks, and the introduction of Credit Cards for Micro Enterprises are key announcements that advance the cause of inclusivity. Digital Public Infrastructure receives a boost with the announcement of ‘BharatTradeNet’ (BTN) for international trade, which will serve as a unified platform for trade documentation and financing solutions, along with a revamped Central KYC Registry.

The exemption of income tax on annual incomes up to ₹12 lakh is a significant benefit, empowering middle-income households and boosting disposable income in both urban and rural markets.

Therefore, the Union Budget 2025-26 not only sustains the current economic growth but also lays a strong foundation for future growth and development.

Viral Kagrana,Finance head of Neoniche Integrated Solutions

Viral Kagrana, Finance Head of Neoniche Integrated Solutions

A long-waiting booster finally comes to the Middle Class of the Indian Population along with focusing of supporting to long-term sustainable economic growth driven by Agriculture, MSME, Investment, and Exports.

By exempting incomes from Rs 7 Lakhs to Rs 12 Lakhs putting back money in the pocket of the people there by boosting their disposable income and overall consumption of the economy.

Such a move will drive the engine for the coming years and resolve long awaiting benefits to the Middle-Class Indian Citizens.

Along with a focus on the Fiscal deficit goal to take the waves of economic global uncertainty and instabilities in parts of the world, it was great to see a boost in labor-intensive sectors such as food processors, textile, leather, and toys that are positioned to boost employment and skill development.

Also, the government continues its commitment to support MSME growth in the economy by focusing on ease of doing business whereas giving business benefits of the government scheme and access to credit thereby setting up the foundation for entrepreneurial culture in the ecosystem–

Budget 2025: Insights from Supply Chain & Retail Tech

Budget Reaction from Mr Leo Peter Charles, Founder & Managing Director at Jane Solutions -Supply Chain Management Company:

“In a major push for India’s maritime sector, Finance Minister Nirmala Sitharaman announced new provisions and facilities to enhance shipbuilding in India as part of the Union Budget 2025. This initiative is set to improve supply chain efficiency and strengthen the country’s logistics network.

With improved shipbuilding capabilities, India can expand its shipping fleet, reduce dependency on foreign vessels, and lower logistics costs. This will particularly benefit fisheries and agri-export sectors, ensuring faster, more cost-effective global trade. Strengthening domestic shipbuilding also supports port infrastructure and coastal connectivity, boosting India’s trade competitiveness worldwide.”

Budget Reaction from Mr Harsh Talwar, Founder & CEO, Cashforphone- Online Retail Tech Startup Company:

“The 2025 Budget holds promising avenues for startups and the retail industry, especially those companies that specialize in sustainable and technology-based services such as mobile phone recycling, repair, and resale. The incorporation period of five years for startups and an increased Credit Guarantee Scheme of ₹20 crore will provide much-needed financial support to emerging businesses and spur innovation and growth in the circular economy.

The removal of TCS on certain transactions, coupled with the simplification of tax compliance, will ease complexity in operations, thereby making business transactions in the refurbished mobile phone market smoother. Reducing the BCD on crucial minerals such as lithium-ion battery waste and scrap, as done by the government, is a step in the right direction and is likely to fortify the electronics recycling industry, in general, to use resources appropriately and sustainably.

This budget further cements India’s commitment to developing a robust, technology-driven retail ecosystem by pushing ease of doing business and further reinforcing financial support for startups. We look forward to using these reforms to drive the adoption of refurbished and recycled mobile devices into a wider consumer base while supporting India’s green economy.”

Budget 2025: Boost for MSMEs, Jobs & Consumption

Venkatraman Venkateswaran, Group President & CFO, Federal Bank

It is a growth-oriented budget, focusing on our journey towards Viksit Bharat. Labor-intensive sectors like agriculture, footwear, leather, toys, and food processing, which are largely MSME sectors, have received a boost. This budget complements our focus on the MSME sector and presents an opportunity to further strengthen our relationship with customers and finance their growth. The personal income tax rate reduction also provides a boost from the consumption side.

The fiscal consolidation roadmap outlined last year stays the course, and government capex spending will provide impetus for infrastructure and job creation.
In summary, it is a balanced budget with a boost to consumption

Budget 2025: Fiscal Roadmap for Sustainable Growth

Dhanpat Nahata, Managing Partner, Essar Capital:

“Given the current geopolitical landscape, India needed a decisive and forward-looking fiscal roadmap to maintain its position as one of the world’s fastest-growing economies. With the fiscal deficit targeted at 4.8% of GDP for FY25 and a structured plan to reduce it in the coming years, this budget sets the foundation for sustainable growth, fostering economic stability and ensuring India remains resilient in the global market.”

Srinivasan Vaidyanathan, Operating Partner, Essar Capital:

“The 2025 Union Budget effectively balances fiscal discipline with targeted, strategic investments. By focusing on critical sectors such as maritime, energy transition, and mining, the government is laying the groundwork for a ‘Viksit Bharat.’ These investments will also foster innovation and job creation, ensuring that economic growth remains resilient, sustainable, and inclusive.”

Union Budget 2025: Investing in People, Innovation, and Rural Prosperity

Chandigarh February 3, 2025, New Delhi: The Union Budget 2025 outlines a transformative agenda that addresses our economy’s immediate needs while paving the way for a sustainable future. This budget reflects our government’s commitment to the common man of India, ensuring that every citizen can thrive in a rapidly evolving landscape. The government’s strategic planning for this budget reflects a deep understanding of the challenges faced by our society. The proposed development measures in the Budget 2025 span broad areas focusing on enabling employment-led development, investing in people, economy, and innovation, and taking everyone together on an inclusive growth plan.

Discussing the budget, Shri Jayant Chaudhary, Hon’ble Minister of State (I/C), Ministry of Skill Development and Entrepreneurship (MSDE) and Minister of State, Ministry of Education, Govt. of India said “The Union Budget 2025 reflects a forward-looking vision that not only strengthens economic growth through tax reforms but also prioritizes key sectors driving India’s future. From enhancing Kisan Credit Card limits and boosting cotton productivity to empowering startups and MSMEs through credit guarantees, these measures will accelerate entrepreneurship and rural prosperity. The focus on deep tech funding, AI-driven education, and five Centers of Excellence in skills underscores India’s commitment to a future-ready workforce. Additionally, expanding medical education, strengthening cancer care at district hospitals, and ensuring social security for gig workers demonstrate a balanced approach to inclusive development. This Budget paves the way for a more skilled, resilient, and self-reliant India.”

The govt. is prioritizing inclusive growth, with targeted measures that uplift underprivileged communities, empower women, and support our farmers. It is also a big win for the individual taxpayers as they provide strength to the economy and to recognize their contribution, the government has provided relaxation to the middle class by exempting tax on income up to Rs. 12 lahks.

There has been a commendable focus on Skilling and Education in the Union Budget 2025. From nourishing children & mothers with Saksham Anganwadi & Poshan 2.0 to fostering innovation with 50k Atal Tinkering Labs, boosting digital learning with BharatNet & language resources, and strengthening skill development & IITs this has been a truly transformative budget for our future.

National Centres of Excellence for Skilling

The government will set up five National Centres of Excellence for Skilling with global expertise and partnerships to equip youth with the skills required for the “Make for India, Make for the World” initiative, focusing on curriculum design, trainer training, and a robust skills certification framework.

National Framework for Global Capability Centres (GCC)

A national framework will guide states in promoting Global Capability Centres in Tier 2 cities, enhancing talent availability and infrastructure while facilitating industry collaboration.

Fund of Funds for Startups

With a corpus of Rs 10,000 crore, our Fund of Funds for Startups will nurture over 1.5 lakh recognized startups, providing crucial capital across various stages and reducing reliance on foreign funding.

Centre of Excellence in AI for Education

The govt. are also establishing a Centre of Excellence in AI for Education with an investment of Rs. 500 crores to revolutionize learning accessibility.

Employment-led Growth Initiatives

To drive employment-led growth, we will implement intensive skill development programs and provide Mudra loans for home stays, enhance travel connectivity, and offer performance-linked incentives to states.

Skilling emerges as a cornerstone across all these initiatives, reinforcing the government’s commitment to fostering an environment where every individual has the opportunity to develop their skills, contribute meaningfully to the economy, and uplift their communities. The initiatives outlined include the scheme to establish India as a global hub for toys and support for 5 lakh first-time women, SC, and ST entrepreneurs, focusing on online capacity building and entrepreneurship training. Additionally, the ‘Rural Prosperity and Resilience’ program aims to combat underemployment in agriculture by providing targeted skilling and investment, empowering rural communities to thrive locally.

So, this budget is not merely about fiscal allocations; it lays a foundation for inclusive growth and sustainable development. As India strives towards becoming a ‘Viksit Bharat’, it is vital to foster an environment where every Indian can realize their potential and contribute to India’s progress and the possibilities that lie ahead.

Budget 2025 Focuses on Crop Productivity, Self-Reliance, and Farmer Prosperity

Rajavelu N.K. CEO – Crop Protection Business, Godrej Agrovet Limited & Co-Chairman of the FICCI Committee on Crop Protection Chemicals

“The government’s enhanced focus on crop productivity and protection is a promising step toward uplifting Indian farming families. The Mission for Cotton Productivity, integrating science and technology with extra-long staple cotton varieties, addresses declining cotton acreage while helping farmers boost yields and profits.

Proposals to reopen dormant urea plants and involve FPOs in vegetable and fruit initiatives are commendable, addressing both input and output challenges. However, awareness of urea’s excessive use and effective implementation will be critical.

Prime Minister Dhan Dhanya Krishi Yojana, targeting 1.7 crore farmers across 100 districts, aims to enhance output, promote crop diversification, and improve post-harvest storage—key to driving rural prosperity and resilience.

As we progress toward self-reliance, integrating crop protection, sustainable farming, and robust post-harvest infrastructure will be essential to increasing farmer