Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2025-26 on February 1, which was termed ‘pro-middle class’ by India Inc as it proposed zero tax on income up to ₹12 lakh under the new tax regime. The industry leaders opine that the budget manages to provide more money in the hands of the middle class which will help boost consumption without compromising on fiscal prudence.

India Inc reactions to the Union Budget 2025:

Change in tax slabs a welcome step: Sajjan Jindal, Chairman and MD, JSW Group

"This budget provides more money in the hands of the middle class which will help boost consumption. A change in tax slabs is a welcome step. The government has maintained its thrust on capex though the spend of ₹11.2 lakh crore is lower than a spending of around ₹13 lakh crore that I was hoping for, based on the past trend. But still, capex spend is at a robust level and will give a boost to the core sectors.”

Budget reaffirms India as global hub for innovation, advanced manufacturing: CS Setty, Chairman, SBI

“The Union Budget reaffirms India as an innovation and knowledge centric economy with a slew of reforms across agriculture, MSME, export centricity, education and healthcare and balancing skills and AI. The rationalisation of personal tax reforms could unleash a potential consumption boom of at least Rs 3.3 trillion spend over baseline. The fiscal numbers are conservative... The MSME sector will benefit from expanded credit availability through credit guarantees, empowering women entrepreneurs and credit cards for micro enterprises. The enhancement of TCS limit on remittances, the enhancement of TDS limits for senior citizens will significantly simplify ease of doing business.”

Budget to fuel India's growth engines: Pawan Munjal, Executive Chairman, Hero MotoCorp

“The Union Budget 2025 fuels India's growth engines with a bold push for manufacturing, green mobility, and rural empowerment—driving innovation, job creation, and global leadership… The automobile sector stands poised for a significant leap forward, with substantial investments in green energy and a clear policy framework to support energy storage solutions. These measures will accelerate India’s transition to a clean mobility future, reinforcing its commitment to sustainability and technological innovation.”

Budget reinforces Make in India vision: Anil G. Verma, Executive Director & CEO, Godrej Enterprises Group

“The Union Budget 2025-26 is holistic in its approach and has been well thought out as it addresses all sections of the society - students, farmers, the economically weak and women - which is a must for India to move forward…The Budget takes significant steps to strengthen India's manufacturing sector, boost MSMEs, and enhance supply chains, reinforcing the Make in India vision. By supporting domestic industries and easing business regulations, it paves the way for companies like Godrej Enterprises Group to contribute more effectively to the country’s progress through innovation and engineering.”

Budget prioritises growth in infra, manufacturing, and tech: Parth Jindal, Vice President, Cement Manufacturers’ Association (CMA) and Managing Director, JSW Cement

“The Budget presented by Finance Minister Nirmala Sitharaman is a forward-looking roadmap that will play a pivotal role in shaping the future of India’s cement industry, in line with the country’s vision for a Viksit Bharat by 2047. It prioritizes growth in key sectors such as infrastructure, manufacturing, and technology. The increased investment in technology will accelerate advancements in green cement solutions, driving both sustainability and innovation within the industry. Notable allocations, including ₹20,000 crore to foster innovation and ₹1.5 lakh crore in 50-year interest-free loans to states for capital expenditure on infrastructure development, are expected to significantly bolster growth in the core sectors, including cement sector.”

Budget to enable Viksit Bharat: Ashishkumar Chauhan, MD & CEO, NSE India

“The budget manages to deliver on consumption, investment and social welfare without compromising on fiscal prudence. The fiscal deficit to GDP for FY26 is budgeted at 4.4% of GDP, ensuring a downward trend in debt to GDP levels. Overall, the budget places India in a strong position and shall play an important role in towards achieving the objective of Viksit Bharat by 2047.

Tax relief to middle class will infuse liquidity into economy: Jagrut Kotecha, CEO, PepsiCo India & South Asia

“We welcome the Union Budget 2025 focused on an income-led economic revival that will provide relief to the middle-income group through policies designed to infuse liquidity into the economy. The measures introduced should alleviate the burden of inflation and rising living costs, bringing much-needed relief to consumers and in turn help in stimulating overall consumption.  PepsiCo India remains committed to supporting India’s journey to becoming the world’s third-largest economy by 2030.”

Budget to boost India’s logistics, economic landscape: Saahil Goel, MD & CEO, Shiprocket

“The transformation of India Post’s 1.5 lakh rural post offices, backed by a 2.4 lakh-strong workforce, marks a historic shift in Bharat’s logistics and economic landscape. This initiative will bridge the urban-rural divide, ensuring seamless access to financial, digital, and logistical services in tier 2 and 3 cities. With public-private partnerships and digitisation at its core, eCommerce will extend beyond urban centers, empowering local businesses, artisans, and entrepreneurs.”