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    HomeLatest NewsIndustry Leaders Hail Transformative Reforms Under Union Budget 2025

    Industry Leaders Hail Transformative Reforms Under Union Budget 2025

    The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has sparked widespread enthusiasm across industries, with leaders applauding the government’s focus on technology, manufacturing, and startups.

    Deepak Chand Thakur, CEO, NPST, said: “The Union Budget FY 2025-26 delivers a comprehensive framework to stimulate growth, enhance investment, and provide direct financial relief. The key highlight—no tax obligation on income up to Rs 2.75 lakh—marks a significant shift in personal taxation. By restructuring slabs and rates across the board, this measure is set to increase disposable income, fueling household consumption, savings, and investment. A direct consequence of increased discretionary spending will be a rise in digital transactions, further accelerating UPI adoption. As UPI cements its role as the dominant digital payment rail, higher transaction volumes are expected to follow. The revamped PM SVANidhi scheme introduces enhanced micro-loans from banks, UPI-linked credit cards with a Rs 30,000 limit, and structured capacity-building initiatives. This policy shift positions UPI beyond a payment rail into a fully integrated digital credit ecosystem, bridging India’s credit gap. With an estimated 10 million street vendors gaining access to formal credit, the initiative strengthens financial inclusion while driving digital-first lending. The introduction of the Grameen Credit Score Framework will significantly expand rural access to credit, while streamlined KYC processes and a revamped registry by 2025 will enhance financial participation. The structural reforms establish a robust foundation for inclusive economic growth, ensuring that investment, digital finance, and consumer-driven expansion work in tandem.”

    Also read: Key Union Budget 2025 Highlights

    Here’s how key voices from the industry reacted to the transformative announcements:

    AI in Education and MSME Support

    Gaurav Baheti, Founder and CEO, Procol, said: “The Union Budget 2025 demonstrates India’s commitment to becoming a global technology and manufacturing powerhouse. As a company rooted in AI and emerging technologies, we are particularly excited by the announcement of the Centre of Excellence for Artificial Intelligence in Education, with an investment of Rs 500 crore. This initiative will undoubtedly fuel India’s AI capabilities, positioning it as a global leader in AI-driven education and creating an ecosystem ripe for talent development and research.The Government’s focus on MSMEs is equally encouraging. With over 5.7 crore MSMEs playing a crucial role in India’s manufacturing and export sectors, the commitment to improving access to capital through enhanced credit guarantees and increased investment and turnover limits will create an environment where small businesses can scale with confidence and contribute to India’s growth as a manufacturing hub. By fostering technological upgradation and boosting efficiencies of scale, these measures will drive both job creation and economic growth, particularly in emerging sectors like clean tech. All of this is sure to create a fertile ground for AI and deep-tech startups. This budget most certainly signals a forward-thinking approach that integrates AI, clean tech, and entrepreneurship, positioning India for a prosperous and sustainable future in the global marketplace.”

    Boost to Global Capability Centers (GCCs)

    Lalit Ahuja, CEO, ANSR, said: “The proposed framework for expanding Global Capability Centers into tier-2 cities introduced by the Finance Minister marks a strategic pivot in India’s tech evolution and the recognition of the immense potential of GCCs as a force multiplier to our economic growth. With 80% of global firms yet to establish GCCs in India, this initiative unlocks tremendous potential for transforming India’s attractiveness as the global GCC capital, while creating millions of skilled jobs across the country’s emerging urban centers. As a global market leader in the GCC industry, ANSR is a huge proponent of expansion of GCC markets to emerging Tier-2 cities. ANSR has partnered with organizations such as KDEM, GIFT City and several state governments to amplify the GCC expansion to Tier-2 cities. It’s truly heartening to see the Finance Minister acknowledge the GCC industry in this year’s budget. This recognition marks a pivotal moment for our sector, poised to break through the sound barrier of growth and emerge as a vital component of India’s IT landscape. The proposed national framework will be instrumental in unlocking the potential of tier 2 cities, driving the next wave of growth, and enabling us to build a robust talent supply engine that fuels innovation and excellence.”

    Empowering Startups and Deep-Tech Innovation

    Ravi Mittal, Founder and CEO of QuackQuack, believes that the Union Budget 2025-2026 takes a strong step toward strengthening India’s startup ecosystem with the additional Rs 10,000 crore Fund of Funds. Access to capital remains one of the biggest obstacles for emerging businesses, and this fresh infusion of funds will provide critical support for startups to innovate, expand, and create jobs. Additionally, the new scheme for first-time women, SC, and ST entrepreneurs is a commendable move toward fostering inclusivity and diversity in the entrepreneurial landscape. At QuackQuack, we understand the challenges of building something from the ground up, and we believe such initiatives will empower more founders to take bold steps toward their dreams. This is a positive push toward making India a global hub for innovation and entrepreneurship.

    Ankit Anand, Founding Partner at Riceberg Ventures, said: ”Union Budget 2025 introduces significant measures to strengthen India’s startup ecosystem and deep-tech innovation. The Rs 10,000 crore renewal to the Fund of Funds for AIFs is a major boost to early-stage startups. The initial commitment has already attracted Rs 91,000 crore in investments, and the fresh infusion is expected to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital. This is crucial for accelerating innovation and positioning India as a global hub for startups. In addition, a new Deeptech Fund of Funds will be explored to further support technological advancements, making a direct impact on the deep-tech sector. This will be accompanied by the launch of 10,000 fellowships under the PM Research Fellowship Scheme, specifically targeting tech research at institutions like IITs and IISc. Over the next five years, this initiative will provide opportunities for young innovators and researchers, fueling the next wave of technological breakthroughs in India. The Budget also includes significant investments in nuclear and AI research, with Rs 20,000 crore allocated for Small Modular Reactors (SMRs) and Rs 500 crore for AI initiatives, highlighting the government’s commitment to building India’s leadership in advanced technologies. These initiatives align with the government’s goal to promote a sustainable startup ecosystem and nurture deep-tech innovations, strengthening India’s leadership in global technology markets.”

    Education and Interactive Technology

    Pankaj Jha, Managing Director, MAXHUB India, said: “The government’s decision to allocate Rs 500 crore for setting up a Centre of Excellence on AI in the education sector marks a significant step towards leveraging technology to transform learning. At MAXHUB, we welcome this forward-looking move, as it resonates with our mission to enhance educational experiences through AI-powered interactive panels. This initiative underscores the potential of technology to create immersive and future-ready classrooms, and we remain committed to driving innovation in this space to support the evolving needs of educators and students.”

    Driving GDP Growth with AI and Innovation

    Rahul Garg, Founder and CEO, Moglix, said: “The Union Budget 2025’s focus on AI and deep-tech marks a pivotal step for India’s tech landscape. The Rs 500 crore allocation for AI Centres of Excellence and the ₹10,000 crore Fund of Funds for startups will fuel innovation and strengthen the startup ecosystem. Additionally, the proposed deep-tech Fund of Funds aims to address funding gaps in long-gestation tech ventures. These initiatives position India to lead in next-gen technologies, driving GDP growth and global competitiveness.”

    Comprehensive Vision for Economic Growth

    Cheruku Srikanth, Founder and CEO, Digital CFO, said: “The 2025 Union Budget is a transformative step towards empowering MSMEs, startups, and the middle class. By reducing tax burdens, increasing access to finance, and fostering a thriving startup ecosystem, this budget lays a strong foundation for sustainable economic growth. It is now up to businesses and entrepreneurs to leverage these opportunities and drive India towards greater prosperity.”

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