India Inc Reacts to Budget 2025

By Anusha Konathala | February 3, 2025

The Union Budget 2025, presented by the Finance Minister, has sparked widespread discussions across industries. From corporate tax reforms to incentives for startups and infrastructure investments, India Inc has voiced mixed reactions. Let’s take a closer look at how business leaders, industry experts, and economists perceive this year’s budget.

Corporate Sector: A Welcome Move for Growth?

The budget introduced key changes in corporate taxation, focusing on boosting domestic production and foreign investment.

• Corporate Tax Reduction: The government reduced corporate tax rates for MSMEs and startups, making it easier for small businesses to scale.
• Incentives for Manufacturing: With the "Make in India 2.0" push, additional tax benefits have been announced for sectors like automobile, electronics, and textiles.

Industry Viewpoint:

Narayana Murthy (Infosys Founder): "A forward-thinking budget that strengthens India's innovation ecosystem."

Sanjiv Mehta (FICCI President): "The budget strikes a balance between growth and fiscal prudence, but execution will be key."

Startup Ecosystem: Encouraging, But More Needed

Startups had high expectations from Budget 2025, especially in terms of funding, compliance relaxations, and taxation policies.

• Tax Holiday Extension: The government extended the tax holiday for startups till 2027.
• Easier Compliance: A new single-window clearance system was introduced to simplify business registration.
• Boost for AI & Deep Tech: ₹10,000 crore allocated for AI startups and deep tech R&D.

Startup Reactions:

Vijay Shekhar Sharma (Paytm Founder): "A great push for fintech and AI, but we need more clarity on execution."

Ankiti Bose (Zilingo Co-Founder): "Tax benefits are a step forward, but funding support for women-led startups is missing."

Stock Market: Volatile But Optimistic

• Sensex & Nifty surged by 500+ points post-budget due to positive investor sentiment.
• Banking, infrastructure, and IT sectors saw gains, while FMCG and pharma remained flat.

Market Experts Speak:

Rakesh Jhunjhunwala’s Protégé (Investor): "A well-balanced budget with a focus on long-term economic stability."

Motilal Oswal (Market Analyst): "Investors should focus on sectors benefiting from infra push."

Infrastructure & Real Estate: Big Gains Ahead?

With a ₹10 lakh crore allocation for infrastructure, roads, and urban development, this budget prioritizes long-term economic growth.

• Home loan subsidies extended for first-time buyers.
• 100 new smart cities planned under the "Viksit Bharat Mission."
• New railways and metro projects to boost urban mobility.

Industry Experts React:

Anuj Puri (Anarock CEO): "A positive budget for real estate, but faster project approvals are needed."

Kushal Pal Singh (DLF Chairman): "The smart city initiative will transform urban living standards."

Final Thoughts: A Balanced Budget with Long-Term Vision

✔ Corporate tax relief boosts businesses 🚀

✔ Startups get tax breaks, but funding clarity is needed 💡

✔ Stock market reacts positively 📈

✔ Infrastructure and real estate emerge as winners 🏗

What are your thoughts on Budget 2025? Let us know in the comments! 👇

For more interesting blogs, visit our website: InspiresAndInnovate