As the Union Budget 2025 unfolded on February 1, the sentiment across industries was largely positive. Entrepreneurs and business leaders welcomed the government’s evolved approach, seeing it as a big step to accelerate India’s economy. This year’s policies that are announced in the budget come across as direct and action-driven. From bolstering MSMEs to pushing for AI-driven innovation and rural transformation, the budget has set the tone for sustainable growth and financial inclusion.
Strengthening MSMEs: The Backbone of India’s Economy
For India’s micro, small, and medium enterprises (MSMEs), the backbone of the economy, the 2025 budget provides renewed hope. Tarun Joshi, CEO & Founder of Join Ventures & IGP, sees it as a transformative moment. He said
“The Union Budget 2025 is a strong step towards empowering India’s MSMEs. The enhanced MSME classification limits and improved credit facilities will drive innovation, scale, and global competitiveness. The expanded Credit Guarantee Scheme and Fund of Funds for startups are timely moves that will fuel entrepreneurship, particularly for first-time and women entrepreneurs. Additionally, the revamped PM Swanidhi Scheme for gig workers ensures greater financial inclusion and security for India’s growing digital workforce. These measures collectively pave the way for a more resilient and dynamic business ecosystem.”
A Recipe Assuming Best for Growth
Rahul Seth, co-founder of Burger Singh, sees this budget as a turning point for the gig economy and QSR sector. Plus, the tax relief for people with 12LPA salary and loan provisions will impact consumption and entrepreneurship, fostering business expansion and accessibility.
“The Union Budget 2025 takes a positive step toward strengthening India’s startup ecosystem and gig economy. New income tax rates will boost consumption by easing the financial burden on the middle class, while term loans of up to ₹2 crore for first-time entrepreneurs will drive business creation and employment. As a QSR brand deeply connected with both sectors, we welcome these measures that enhance ease of doing business and financial inclusion, ensuring greater accessibility to quality dining options across India.”
A Leap Toward Global Leadership
AbinavVarmaKalidindi, Founder & CEO of Ikonz Studios, believes India is positioning itself as a global contender in AI innovation. The substantial investment in AI centers, coupled with startup credit support, signals a strategic move toward becoming a developed economy fueled by technology and innovation.
“So far, AI innovation has been dominated by the US and China, but with the ₹500 crore investment in AI centers, India is signaling its intent to take a leading role in the global AI landscape. This move strengthens our position as one of the most committed economies driving AI advancements. Expanding credit support for startups is another step in the right direction, enabling founders to take risks and scale faster. While these initiatives are promising, consistent execution and long-term policy support will be crucial in making India a true AI and startup powerhouse. Additionally, the increase in income tax exemption to ₹12 lakh will also provide financial relief, boosting spending and overall economic momentum.”
Step forward to transform local lives
PreetSandhuu, Founder and MD, AVPL International, appreciates the Union Budget 2025 for its decisive focus on uplifting rural communities. By targeting low-productivity agricultural districts and enhancing education through technology, the budget addresses grassroots challenges while aligning with a vision of holistic and sustainable development.
“Union Budget 2025 takes significant steps toward rural development, technological advancement, and education, with a strong focus on capacity building. The Prime Minister KrishiYojana targets 100 low-productivity agri-districts, aiming to benefit 1.75 crore farmers through sustainable practices and improved credit access. The increased Kisan Credit Card loan limit to ₹5,000 addresses the challenges faced by 86% of farmers cultivating on small and marginal holdings. Additionally, the expansion of the Atal Tinkering Lab (ATL) initiative to 50,000 schools and the establishment of Centres of Excellence for AI in Education demonstrate a forward-thinking approach to education and innovation. The National Geospatial Mission will modernize land records and enhance urban planning, leveraging the PM Gati Shakti framework to improve infrastructure project execution.
The budget also boosts sectors like drones, auto components, and electronics manufacturing, fostering technological growth. All these improvisations align with AVPL’s mission to empower rural communities and support a holistic vision for sustainable development and technological progress, reinforcing a pathway to resilience across sectors.“
Vision for Viksit Bharat
Union Budget 2025 reflects a strong commitment to nurturing key sectors of the economy. By addressing industry needs through technological investments, tax reforms, and targeted incentives, the government is laying the groundwork for sustainable and inclusive growth. Industry leaders are optimistic that these measures will fuel innovation, create jobs, and solidify India’s position on the global economic stage.
