The Union Budget 2025 brings important changes across real estate, healthcare, startups, EVs, and agriculture. Industry experts share their views on how these measures will boost growth, improve accessibility, and drive innovation in India.
Payal Jain , Founder of Funngro
The Union Budget 2025 recognizes the vital role of gig workers and startups in India’s growing digital economy. The government’s initiative to provide identity cards and e-Shram registration for nearly 1 crore gig workers, along with healthcare benefits under PM Jan Arogya Yojana, is a major step toward securing their future. Additionally, the ₹10,000 crore Fund of Funds for startups, higher MSME classification limits, and increased credit guarantee cover from ₹5 crore to ₹10 crore will fuel entrepreneurship and innovation. These measures will provide better financial access, stability, and growth opportunities for gig workers and young entrepreneurs. Funngro applauds this move and remains committed to empowering India’s youth and freelancers to thrive in the evolving job market.
Bhavik Vasa, Founder of GetVantage
“The Union Budget 2025 delivers a decisive push for India’s startup and MSME ecosystem. The abolition of the angel tax, a ₹1 Lakh Crore Innovation Fund, and a ₹10,000 Crore Fund of Funds signal a bold commitment to fueling AI, innovation and risk capital. Doubling MSME turnover limits, expanding investment thresholds, and enhancing credit guarantees to ₹10 Cr reinforce the government’s vision of MSMEs as the second engine of the economy. These reforms aren’t just financial interventions, they are structural shifts that position India as a global hub for manufacturing, entrepreneurship, and innovation.”
Tanul Mishra, Founder of Afthonia Labs
The budget focuses on four pillars of the Indian economy: Agriculture, MSMEs, Investment, and Exports, ensuring sustainable growth. The increase in Kisan Credit Cards is commendable, but the government must enhance the execution of incentives through stronger public-private partnerships.
The ₹10,000 crore Fund of Funds and a potential Deep Tech fund in the Union Budget 2025 will significantly boost India’s startup ecosystem. By targeting high-impact areas like fintech, AI, robotics, blockchain, and clean energy, this initiative will provide much needed boost to innovative startups.
Afthonia remains committed to supporting innovation-driven entrepreneurship, aligning with our mission to nurture transformative startups.
Mohit Singhal, Founder of Fundbook
The Union Budget 2025 delivers a strong boost to India’s MSMEs, enhancing access to funding and credit. With an additional ₹10,000 crore allocated to the Fund of Funds for Startups, early-stage ventures will find it easier to secure growth capital, fostering innovation and expansion.
The revised MSME classification, raising investment limits by 2.5 times and doubling turnover thresholds—ensures that more businesses can retain MSME benefits like tax breaks, priority lending, and government contracts. This will encourage growth without fear of losing crucial incentives.
A major shift in credit access comes with the CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) guarantee doubling from ₹5 crore to ₹10 crore, making collateral-free loans more accessible. Under CGTMSE, banks and financial institutions can offer loans to MSMEs without requiring collateral, as the government-backed scheme provides a credit guarantee. This reduces lending risk, encouraging more financial institutions to extend loans to small businesses. The increase in the guarantee limit is expected to unlock ₹1.5 lakh crore in additional credit over five years, reducing borrowing costs and fueling MSME expansion.
Adith Poddar, Founder of Gemba Capital
This budget is a significant boost for the middle class in India and has been long overdue. The increase in the tax exemption limit to 12 lakhs is expected to further stimulate domestic demand and consumption. The “Make in India” initiatives aligned with expectations, particularly the rationalization of customs duties for electronic components, batteries, and open cell parts.
The increase of foreign direct investment (FDI) in insurance to 100% supports the government’s initiative of “Insurance for All by 2047”. However, we anticipated a reduction in the Goods and Services Tax (GST) on insurance premiums, which was not addressed in the budget.
Reducing the fiscal deficit to 4.4% of GDP is a prudent decision that aims to promote sustainable growth over the long term without increasing government borrowing. While we hoped for a ~10% increase in capital expenditure for FY26, it remained relatively flat at 11 lakh crores.
The continued support and expansion of the Startup Fund of Funds by an additional 10,000 crores is a positive development, along with the announcement of a new Fund of Funds for the deep tech sector.
In terms of easing business operations and governance, the budget includes:
- Rationalization of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS)
- Fast-tracking mergers
- An Export Promotion Mission, which, along with the unified Bharat Tradenet, will simplify documentation for cross-border transactions.
Mehul Shah, Founder of Intelligere:
As an entrepreneur, I find this year’s budget quite exciting. The finance minister has taken a commendable approach by prioritizing digital transformation, which will certainly benefit businesses in the long run. The increased focus on ease of doing business and the introduction of reforms to promote MSMEs and startups is a welcome move. These initiatives can help provide much-needed support to entrepreneurs and foster innovation.Overall, it’s a step in the right direction, but the real impact will depend in the fine print.
Saahil Bhanot, Founder of Sylvr:
The higher investment, turnover limits and credit guarantee covers will relax several lakhs of MSME Entrepreneurs who were conflicted in the previous slabs. The govt. has progressively revamped policies to bring better days to MSMEs and lift them from the bygone cottage industry era.
Giridhar LV, Founder of Nuvepro Technologies:
The establishment of a Centre of Excellence for Artificial Intelligence with a ₹500 crore allocation in the Union Budget 2025 should provide a much-needed impetus for AI-driven research and job creation focused on addressing India-specific challenges. By concentrating on areas such as healthcare, personalized education, better weather predictions for farmers, and improved safety for citizens, the institute can play a key role in solving some of the country’s most pressing problems. These advancements can generate a significant number of jobs, essential for India to fully capitalize on its demographic dividend. Harnessing AI for these critical sectors could not only transform industries but also enhance the quality of life for millions, creating a lasting socio-economic impact.
