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.