The Budget of 2025-26 was presented by the Finance Minister today. It contained many features for the middle class, youth, farmers and for women. It appears that the recent political campaigns by different parties going on in Delhi had an impact on the government's framing of the economic policies for this financial year. These segments have been in major focus in these campaigns.
Apart from these segments mentioned above, MSMEs were given a special mention in the budget.
Schemes such as issuing of credit cards with a limit of 5 lakhs to the MSMEs, increase of credit availablity from 5 crores to 10 crores and revision of classification criteria for MSMEs are some important steps taken in this budget. According to the new classification, micro enterprises have been redefined with a turnover of 10 crores as against 5 crores earlier, small enterprises with a turnover of 100 crores as against 50 crores earlier and medium enterprises with a turnover of 500 crores as against 250 crores earlier.
Indirect tax benefits include exemption of tariffs for Make in India LCD/LED TVs and for mobile phones.
Personal income tax slabs have been revised keeping in mind the middle class and may also apply to many MSMEs. These include no tax upto 4 lakhs, 5% upto 8 lakhs, 10% upto 12 lakhs and 15% upto 16 lakhs of annual income. Spcifically for the IT and Telecom sector, the government proposes to spend Rs 95,298 Crores in this FY.
Several IT business leaders have given their views about the budget -
“With the unveiling of the Union Budget 2025, significant advancements in artificial intelligence come into focus, particularly with the creation of National Centres of Excellence (COEs) in AI. This shift signals a ground breaking transition from AI being a mere boardroom discussion to becoming a central budgetary focus, complete with serious financial commitments. By earmarking funds specifically for deep tech, the government is actively fostering an environment ripe for innovation, acknowledging the high-risk nature of such investments, and putting resources right where they're most needed. This policy shift could elevate India's skilled tech workforce, facilitated by increased funding and programs such as Train the Trainers, ensuring capable instructors for burgeoning student populations. The expansion of broadband access further ensures that students even in remote areas can emerge technologically proficient, broadening the talent pool to Tier 3 and 4 cities and rural India.
The FM also announced a 5-year extension of the startup incorporation period, allowing more startups, including those established before January 2013, to enjoy benefits like extended tax concessions—a vital move as startups often require longer timelines to become profitable. The decriminalization of TDS and TCS further underscores the government's focus on supporting MSMEs. In addition, easing the tax deduction and collection structures simplifies financial management for startups, alleviating cash flow concerns and enabling companies to operate more smoothly.”
--Pankit Desai, Co-founder & CEO, Sequretek
“The Union Budget 2025 presented by the Finance Minister marks another reforms-led budget in India's economic journey. The strategic focus to boost domestic mobile battery manufacturing, coupled with the new fund of funds for start-ups, exemption of 28 mobile battery goods from BCD, will have a positive impact on the technology sector. The National Manufacturing Mission further strengthens the Make in India initiative, while enhanced support for domestic electronic equipment manufacturers will boost our export capabilities. This multi-pronged approach positions India as a dominant force in global electronics manufacturing.”
-- By Yug Bhatia - Founder and CEO, Control Z
“The government’s decision to allocate Rs 500 crores for setting up a Centre of Excellence on AI in the education sector marks a significant step towards leveraging technology to transform learning. At MAXHUB, we welcome this forward-looking move, as it resonates with our mission to enhance educational experiences through AI-powered interactive panels. This initiative underscores the potential of technology to create immersive and future-ready classrooms, and we remain committed to driving innovation in this space to support the evolving needs of educators and students.”
-- Pankaj Jha, Managing Director of MAXHUB India
“The Union Budget paves the way for holistic and fast-paced rise of the country as an economic super house. Pertaining to technology industry, the provisions and initiatives announced to setting up of Centre of Excellence for AI as well as special fund focused on deep tech, will further place India at the global centre stage of revolution. With reference to focus on employment and skilling for the youth, the Union Budget provides the right impetus to gain industry-relevant skillsets and opportunities. Furthermore, the ecosystem also stands to benefit out of the opportunities arising for Industry 4.0 inclination for domestic manufacturing push with IoT and smart tech capabilities expected to gain prominence. Overall, the five engines of growth are well thought-off and the onus is on the industry to play its part.”
--Joseph Sudheer Thumma, Global Chief Executive Officer & Managing Director, Magellanic Cloud
“The Union Budget 2025-26 presents a balanced approach to strengthening India’s manufacturing and electronics sector. The National Manufacturing Mission announced, along with policy support for clean technology manufacturing, will further solidify India's position as a global manufacturing hub. The government's focus on domestic value addition, with a focus on manufacturing of EV batteries, solar PV cells, and electronics, is a step towards enhancing self-reliance and sustainability.
The emphasis on skill development through initiatives such as establishing National Centres of Excellence aligns with the need for a highly skilled workforce in Industry 4.0. This, along with targeted policies for MSME growth and global supply chain integration, will create new opportunities for businesses like ours.
Additionally, the push for R&D and innovation with dedicated financial support will help drive advancements in emerging technologies. The government's continued commitment to improving ease of doing business through a modern, trust-based regulatory framework is a welcome move. Streamlining approvals, updating outdated regulations, and reducing compliance burdens will enable faster innovation and greater competitiveness for industries like electronics manufacturing.
While certain duty revisions will require careful industry evaluation, the verall budget signals a strong commitment to long-term industrial growth. We look forward to leveraging these opportunities to expand our capabilities and contribute to India's growing role in global electronics manufacturing.”
-- J S Gujral, Managing Director, Syrma SGS Technology
Overall, the Union Budget 2025 reinforces India’s commitment to “Make in India” and “Viksit Bharat,” with a strong push for manufacturing and MSME growth. With over 1 crore MSMEs driving 36% of manufacturing and 45% of exports, enhanced investment and turnover limits will empower them with scale, technology, and capital access. The National Manufacturing Mission will provide policy support and execution roadmaps, fostering an ecosystem where companies like Scandron can thrive.”
--Arjun Naik, Founder & CEO, Scandron
The comments show that the Indian businesses in the IT sector are quite optimistic about this budget. It remains to be seen how its impacts unfold.
Read more from Archana Verma
Indian IT Business Leaders Comment on the Budget 2025
Indian IT Business Leaders Comment on the Budget 2025 to show their support for the government in its steps to alleviate the MSMEs and the new taxation scheme
The Budget of 2025-26 was presented by the Finance Minister today. It contained many features for the middle class, youth, farmers and for women. It appears that the recent political campaigns by different parties going on in Delhi had an impact on the government's framing of the economic policies for this financial year. These segments have been in major focus in these campaigns.
Apart from these segments mentioned above, MSMEs were given a special mention in the budget.
Schemes such as issuing of credit cards with a limit of 5 lakhs to the MSMEs, increase of credit availablity from 5 crores to 10 crores and revision of classification criteria for MSMEs are some important steps taken in this budget. According to the new classification, micro enterprises have been redefined with a turnover of 10 crores as against 5 crores earlier, small enterprises with a turnover of 100 crores as against 50 crores earlier and medium enterprises with a turnover of 500 crores as against 250 crores earlier.
Indirect tax benefits include exemption of tariffs for Make in India LCD/LED TVs and for mobile phones.
Personal income tax slabs have been revised keeping in mind the middle class and may also apply to many MSMEs. These include no tax upto 4 lakhs, 5% upto 8 lakhs, 10% upto 12 lakhs and 15% upto 16 lakhs of annual income. Spcifically for the IT and Telecom sector, the government proposes to spend Rs 95,298 Crores in this FY.
Several IT business leaders have given their views about the budget -
The comments show that the Indian businesses in the IT sector are quite optimistic about this budget. It remains to be seen how its impacts unfold.
Read more from Archana Verma
Read more IT News