Union Budget With Praxis Global Alliance
Decode Union Budget 2025 with Praxis Global Alliance | BudgetConvos
01 Feb 2025

The #UnionBudget2025, presented by Finance Minister Nirmala Sitharaman today, lays a strong foundation for the vision of Viksit Bharat (Developed India). This budget introduces transformative reforms across six critical sectors:

-Taxation

-Power sector

-Urban development

-Mining

-Financial sector

-Regulatory reforms

Mit Desai, Practice Leader, Wealth Management, Praxis Global Alliance

The government’s financial sector reforms mark a significant leap towards increased investment, rural financial inclusion, and regulatory efficiency.Raising the FDI limit in insurance to 100% for companies reinvesting their premiums in India will attract global capital and strengthen the sector.Expanding India Post Payment Bank in rural areas and introducing a Grameen credit score framework will enhance financial accessibility. Additionally, a revamped central KYC registry and streamlined re-KYC processes will boost efficiency.

Akshat Gupta, Practice Leader, Food & Agriculture at Praxis Global Alliance

"The Finance Minister’s budget announcements mark a transformative shift in India's agricultural sector, strengthening financial access, productivity, and self-reliance. The increase in Kisan Credit Card (KCC) loan limits to 500000 will provide much-needed financial support to 7.7 crore farmers, fishermen, and dairy producers, ensuring better liquidity for agricultural production. The launch of the Dhan Dhanya Krishi Yojana, focusing on 100 low-productivity districts, along with an agriculture program to support 1.7 crore farmers, highlights the government’s commitment to improving yield and economic stability.The six-year mission for self-reliance in pulses, backed by procurement of ururad, and masoor by central agencies, will enhance domestic production and price stability. The establishment of a Makhana Board in Bihar will further drive processing and value addition for farmers. Additionally, initiatives promoting crop diversification, irrigation expansion, and post-harvest storage will benefit 1.7 crore farmers, ensuring resilience and sustainability in farming. The National Mission for Edible Oils and Seeds reinforces India's push for Aatmanirbharta in the sector, reducing import dependency while boosting domestic production.

Aryaman Tandon-Managing Partner Technology, Praxis Global Alliance 

"The Union Budget 2025-26 reinforces India's commitment to innovation and digital transformation. The ?500 crore allocation for the Centre of Excellence in Artificial Intelligence and the 20,000 crore investment in private sector-driven R&D will accelerate tech-led growth. The expansion of Atal Tinkering Labs and broadband connectivity to government schools will nurture a future-ready workforce.These initiatives position India as a global technology powerhouse, fostering innovation, skilling, and economic expansion" 

Mit Desai- Practice Leader, Travel and Tourism at Praxis Global Alliance

"The focus on tourism as an engine for employment-led growth is commendable. The introduction of MUDRA loans for homestays, streamlined e-visa facilities, and performance-linked incentives for states will boost domestic and inbound tourism.The plan to enhance connectivity to 120 new destinations under UDAN and develop top 50 tourist sites in partnership with states will strengthen India's position as a global travel destination. These measures will drive infrastructure growth, job creation, and economic prosperity in the tourism sector."The Union Budget 2025-26 provides a strong boost to the hospitality sector with initiatives aimed at enhancing tourism infrastructure and employment generation. The ?1 lakh crore Urban Challenge Fund for city redevelopment, MUDRA loans for homestays, and streamlined e-visa facilities will significantly improve travel and accommodation experiences. Additionally, the plan to develop 50 top tourist destinations in partnership with states and the expansion of UDAN to 120 new destinations, targeting 4 crore passengers over the next 10 years will drive domestic and international tourism. These measures will unlock new growth opportunities for the hospitality industry, attracting investment and strengthening India’s position as a global travel hub. 

Garima Malhotra- Associate Partner, Healthcare and Lifesciences at Praxis Global Alliance
"The Union Budget 2025-26 takes a significant step toward strengthening India's healthcare ecosystem. The expansion of medical education with 10,000 additional seats and the plan to add 75,000 seats over the next five years will address the shortage of healthcare professionals. The establishment of Day Care Cancer Centres in all district hospitals is a critical move towards enhancing accessibility to specialized treatment. These measures, along with continued investment in public health infrastructure, will improve healthcare access and affordability, fostering a healthier India.The government’s push for improved access to life-saving medicines through the addition of 36 drugs to the exempted list and enhanced support for rare disease treatments is a welcome move. The rationalization of customs tariffs for industrial goods, including incentives for domestic pharmaceutical manufacturing, will further boost India’s position as the ‘Pharmacy of the World.’ The emphasis on R&D with a 20,000 crore investment in private-sector-led innovation will also accelerate drug discovery and biotech advancements." 

Kshiteej Mishra, Practice Member, Mobility Energy and Transportation at Praxis Global Alliance

"The Union Budget 2025 signals a transformative shift in India's energy landscape with bold reforms in electricity distribution and nuclear energy. The provision allowing states an additional 0.5% borrowing of GSDP, contingent on power sector reforms, will incentivize much-needed efficiency and modernization in electricity distribution. Recognizing the critical role of nuclear energy in India's energy transition, the government has committed to developing at least 100 GW of nuclear power by 2047. Key legislative amendments to the Atomic Energy Act and Civil Liability for Nuclear Damage Act will open doors for private sector participation, fostering innovation and investment. The launch of the Nuclear Energy Mission, with a ?20,000 crore outlay for R&D on small modular reactors, is a significant step towards energy self-sufficiency. The plan to operationalize five indigenously developed small modular reactors by 2033 underscores India's commitment to sustainable and scalable nuclear power solutions.

Madhur Singhal, Managing Partner, Private Capital at Praxis Global Alliance

The Union Budget 2025 strategically enhances India’s investment climate by expanding opportunities for private equity (PE) and venture capital (VC) investors. With the broadened definition of MSMEs, which now includes enterprises with investment limits of ?2.5 crore and turnover limits of ?500 crore, a larger pool of high-potential businesses can access affordable financing and government incentives, attracting increased investor interest. The 10,000 crore fund of funds for startups further strengthens the ecosystem, providing essential seed and early-stage funding to drive innovation and growth. Additionally, the budget includes key initiatives like ?1.5 lakh crore in interest free loans for state infrastructure projects and a ?10 lakh crore asset monetization plan, unlocking significant investment opportunities in real estate and construction. The Jan Vishwas Bill 2.0, which decriminalizes over 100 business law provisions and replaces criminal penalties with civil fines for minor violations, modernizes the regulatory framework, aligning it with global standards and boosting investor confidence. These measures collectively position India as an increasingly attractive destination for long-term, sustainable investments.

Sandeep Ghosh, Practice Leader, Financial Services at Praxis Global Alliance

"The budget introduces transformative reforms in the financial sector, reinforcing India’s position as a global financial hub. The increase in the FDI limit for insurance from 74% to 100% will attract greater international capital, while the ‘Partial Credit Enhancement Facility’ by NaBFID will strengthen corporate bond markets. Additionally, the revamped Central KYC registry and regulatory simplifications will enhance ease of doing business.These initiatives will fuel financial inclusion, capital market growth, and economic resilience."

Shivaraj Jayakumar, Practice Leader, Consumer and Internet at Praxis Global Alliance

"The Union Budget 2025-26 brings significant support for the Food & Beverage sector, with a strong focus on food processing and agricultural value addition. The establishment of a National Institute of Food Technology in Bihar, along with enhanced credit for farmers and MSMEs, will strengthen the farm-to-fork ecosystem. Additionally, the push for high-yielding seeds, sustainable farming, and improved warehousing infrastructure will enhance food security, quality, and exports, driving long-term sectoral growth. With increased credit availability for MSMEs and startups, along with a focus on ease of doing business, the budget lays the groundwork for a more dynamic retail ecosystem. The rationalization of customs tariffs and support for domestic manufacturing will benefit retailers by ensuring a more efficient supply chain. Additionally, initiatives like BharatTradeNet and digital public infrastructure will facilitate smoother trade, enhancing the retail sector’s digital and offline integration to meet evolving consumer demands. The announcement of the National Geospatial Mission, with a significant focus on modernizing land records, urban planning, and infrastructure design through PM Gati Shakti, is a game-changer for India’s digital and physical infrastructure. With an allocation of 20,000 crore for private sector-driven R&D and the establishment of Bharat Trade Net to streamline trade documentation, geospatial intelligence will play a critical role in accelerating economic development. This initiative will enhance precision in large-scale projects, optimize logistics, and strengthen India's global competitiveness in geospatial technology."

Vishal Bhave, Practioner Partner,Insurance at Praxis Global Alliance

"The Union Budget 2025-26 marks a transformative shift for the insurance industry with the increase in the FDI limit from 74% to 100%. This move is set to attract greater global investments, enhancing competition, innovation, and penetration in the sector. Additionally, initiatives like the ‘Grameen Credit Score’ framework and the revamped Central KYC registry will improve financial inclusion and streamline access to insurance products. These reforms will accelerate the sector’s growth, making insurance more accessible and efficient for India’s diverse population."

Madhur Singhal, Managing Partner, Next Gen Industrials

The Union Budget 2025-26 lays a strong foundation for the growth of next-generation industrials, including manufacturing, cement, and allied sectors. The focus on clean-tech manufacturing, ease of doing business, and enhanced credit guarantees for MSMEs and exporters will drive industrial expansion. Additionally, the rationalization of customs tariffs, infrastructure investments, and incentives for future-ready workforce development will accelerate India’s transition into a global manufacturing powerhouse. These measures will not only boost domestic production but also strengthen India’s position in global supply chains. 

Mit Desai, Practice Leader, Education and Employability at Praxis Global Alliance The establishment of three Centres of Excellence for Artificial Intelligence in Education, with an outlay of 500 crore, marks a significant step towards integrating AI-driven learning solutions and enhancing digital education. This initiative will equip students with future-ready skills, fostering innovation and accessibility in the education sector. Furthermore, the expansion of medical education with 10,000 additional UG and PG seats next year, building on the addition of 1.1 lakh seats over the past decade, reflects the government’s commitment to strengthening healthcare education and ensuring greater access to quality medical training.

Ready to talk?

I want to talk to your experts in:

We work with ambitious leaders and transformative clients who are defining the future. Together, we achieve extraordinary outcomes.

I have read the privacy policy and I agree to its terms.