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Union Budget 2025: Key Announcements and Industry Reactions
Union Budget 2025 is announced by the finance minister, Nirmala Sitharaman. This budget is pronounced a mixed bag, which has something for everyone. Whether it is income tax relief, MSME credits, tax reductions for senior citizens, or extending support for women entrepreneurs, this Union Budget has it all.
To summarize some of the major Key Announcements of Union Budget 2025:
Income Tax Relief: This is one of the major announcements for the middle class. No tax payable for up to ₹12 lakh for the salaried employees. Introduction of 25% slab to ease up tax for employees earning between ₹20 lacs to 24 lakh and 30% above ₹24 lakh. For senior citizens, the deduction limit is doubled from ₹50,000 to ₹100,000.
Announcements for MSMEs: Customised credit cards under the Udyam Portal with a limit of ₹5 lakh for MSMEs; 10 lakh will be issued in the very first year; increased credit guarantee cover for MSME from ₹5 crore to ₹10 crore; new scheme announcements for the first-time entrepreneurs.
Make in India Announcements: The National Manufacturing Mission will be there to boost the Make in India initiative; moreover, the government is going to promote sustainable technology. EV batteries, PV cells, wind turbines, etc. will be strengthened to promote clean technology.
Initiatives for Exports: A digital platform, BharatTradeNet (BTN), is announced, which will assist in international trade documentation and financing solutions. The Ministry of Commerce, MSME, and Finance will establish a new export mission to ease up export credit and support MSMEs working with foreign markets.
These are some of the points that are useful for traders, manufacturers, MSMEs, startups, and the middle class. Furthermore, there are several announcements for rural India as well as for the agriculture sector.
Union Budget 2025 - IT Sector Shared Positive Reaction
Very encouraging and prosperous industry friendly budget. Up to ₹12 lakh no income tax is a good move for employees, seeing the inflation. We expect Simply 20% on profit for companies, which will help us on not getting into complicated calculation and auditor fees, etc.
Overall, an encouraging budget.
-- Amitanshu Satpathy, Promoter and Group MD, Best Power Equipments
My initial thoughts on the GOI budget proposals: 2025-2026.
The changes in personal income tax come as a relief to all taxpayers.
This will contribute to a feel-good factor with all taxpayers.Initiatives in the budget with respect to investments in Infra and Nuclear Energy, investment limit changes for MSME's, additional seats in IIT's and Medical Colleges, exemption extension to startups, and the investment in COE for AI should help the Indian IT sector to achieve increased growth for this coming year.
-- Alok Gupta, CEO, Softmart Solutions
"The allocation of Rs 20,000 crores for private-sector-led innovation initiatives stands out as the key provision of the Union Budget 2025. “The creation of the Deep Tech Fund will boost ventures' growth while encouraging startups to build and scale their businesses,” says Ashutosh Kumar, CEO and Founder of GrowthJockey, “The move will have transformational impacts on the productivity of existing businesses as well.”
Offering 10,000 technical research fellowships in IITs, NITs, and IISc under the PM Research Fellowship Scheme will also catalyse digital transformation in the country. “The setting of the National Geospatial Mission, land records modernisation, and infrastructure project designing will also encourage the use of digital tools and technologies across industrial sectors,” opines Ashutosh, “The National Manufacturing Mission specifically focusing on clean-tech will specifically help AI, ML, and Automation adoption.”
The Union Finance Minister also announced the centre of excellence in artificial intelligence (AI) that will be established with an outlay of Rs 500 Cr. “This underscores the government's commitment to position India as the leading tech player” concludes Ashutosh, “Even as the country strives to take digital transformation initiatives to the next level.”-- Ashutosh Kumar founder & CEO GrowthJockey.
Conclusion
Overall, industry has taken this budget positively. This budget has even brought some relief for the salaried employees, which in turn will improve the spending of the middle class income group, which will definitely boost the industry further.
Read More:
Union Budget 2025: IT Industry Expectations on R&D, Cybersecurity