Finance Minister Nirmala Sitharaman presented the Budget 2025-26 on February 1, 2025, focusing on the digital economy, technology, education, providing tax relief to people, and focusing on infrastructure and enhancing agricultural development.
Below are key business leaders’ reactions to Budget 2025-26.
Jyoti Sharma, CEO of Nasscom Foundation
“The 2025-26 Union Budget reinforces technology’s role as a catalyst for inclusive growth, with specific emphasis on digital inclusion, skills development, and empowerment of women, farmers, and marginalized communities, strongly aligning with our mission at nasscom foundation. It is elating to see a strategic emphasis on AI, particularly the establishment of a Centre of Excellence in AI for Education with an allocation of ₹500 crore coupled with further investments in upskilling and reskilling programs, particularly targeting women and rural populations, aligns with our vision and mission of fostering inclusive growth. With allocated funds, initiatives such as dedicated research centers for AI, expanded digital infrastructure, and support for the deep-tech ecosystem, will further fuel growth, innovation, and sustainable development.“
Swapna Bapat, Vice President & Managing Director, India and SAARC at Palo Alto Networks
“We strongly believe that innovation is the driving force behind sustainable progress. The Government of India’s ₹500-crore investment to establish a Centre of Excellence in Artificial Intelligence for education marks a decisive step toward realizing AI’s full potential. Equally critical is modernizing and securing both legacy and emerging systems, supported by a workforce skilled in meeting the demands of an increasingly digitally connected world.
We appreciate the government’s commitment to upskilling the young workforce for emerging technologies. The creation of national centers for skilling with global expertise under ‘Make for India’, alongside provisions for 10,000 fellowships for technological research in IITs and IISc, will play a pivotal role in bridging the talent gap and preparing professionals for the future of work.”
Sarvagya Mishra, Founder & Director at Superbot
“The Union Budget 2025-26 announcement has touched upon pivotal aspects to push the next wave of growth in India. We particularly commend the announcement of the Centre of Excellence for AI In Education, to be established with an outlay of INR 500 CR. Furthermore, the move to set up the Deeptech Fund of Funds and establish 5 new IITs after 2015, is another significant move, directed at boosting innovation in the space of AI and Tech. We commend the budget for its forward-looking measures and look forward to contributing towards India’s emergence as a global leader in the space of AI, Tech, and Innovation”
Bruce Keith, co-founder and CEO of InvestorAi
“While the Budget started with a big bang, quite literally, the Honourable Finance Minister has announced a string of boosters for the Indian startup sector. The extensions to the loan programs make sense in the context of micro-enterprises. However, the crucial fund of funds of Rs 10,000 crore will play a key role in boosting domestic capital in the startup sector. The announcement on deep tech fund, while details are awaited, it should be viewed through the DeepSeek lens of what can be done with relatively small amounts of capital when provided to agile and creative teams. We expect the VC ecosystem to bring velocity and momentum into funding these enterprises.
I was especially delighted to hear about the enhancing the “spirit of curiosity and innovation “with IIT expansions of capacity and centres of excellence for AI education – talent availability is a necessary part of continuing our growth”.
Pankit Desai, Co-founder & CEO of Sequretek
“With the unveiling of the Union Budget 2025-26, significant advancements in artificial intelligence come into focus, particularly with the creation of National Centers of Excellence (COEs) in AI. This shift signals a groundbreaking 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.”
Also Read: CXOs expectations from budget 2025: Prioritize focus on AI, digital transformation capabilities, cybersecurity policies; here are top expectationsPradeep Aggarwal, Chairman, Signature Global (India) Ltd.
“The Union Budget 2025 is a game-changer, reinforcing India’s commitment to inclusive and sustainable urban growth. The SWAMIH Fund 2, with ₹15,000 crore, will accelerate the completion of stalled housing projects, bringing relief to over one lakh homebuyers. The ₹1 lakh crore Urban Challenge Fund will play a pivotal role in transforming cities into vibrant growth hubs, ensuring balanced regional development.
The masterstroke of direct tax reform—exempting income up to ₹12 lakh—will significantly boost disposable income, increasing affordability for homebuyers and driving real estate demand. Additionally, the government’s thrust on PPP-driven infrastructure with a structured three-year project pipeline will accelerate urban expansion, unlocking new opportunities for real estate and housing. These progressive reforms align with India’s vision of ‘Sabka Vikas’, fostering a robust ecosystem for homebuyers, developers, and investors alike.”
Sachin Gajjaer, Managing Director of Sattrix India
“Budget 2025 lays a strong foundation for economic growth, digital transformation, and innovation-driven development. The government’s focus on infrastructure investment, business-friendly policies, and deep-tech innovation positions India as a global technology leader. The introduction of a Deep Tech Fund is a significant step, encouraging AI-driven advancements and strengthening cybersecurity. The government’s push for deep-tech innovation, AI, and cybersecurity will be a game-changer. Investing in next-gen technologies and digital resilience will empower businesses and accelerate India’s position as a technology leader.
The revised tax structure, ease of compliance, and 50-year interest-free loans to states for infrastructure projects will drive economic growth. Additionally, a strong emphasis on skill development in emerging IT domains ensures a future-ready workforce. With strategic reforms and a focus on technology, Budget 2025 paves the way for a digitally empowered and globally competitive India”.
Hitesh Garg, VP and India Managing Director of NXP Semiconductors
“The Union Budget 2025-26 continues to reinforce India’s ambition to be a global leader in technology, with initiatives focussed on driving self-reliant, advanced manufacturing as innovation. The launch of the National Manufacturing Mission is a key step in accelerating the ‘Make for India, Make for the World’ vision. Its focus on clean technology and sustainability ensures long-term competitiveness in global markets.
The government’s ₹20,000 crore investment in private sector-led R&D, alongside the Deep Tech Fund, is a strategic move to strengthen India’s leadership in AI, semiconductors, and next-gen manufacturing. The ₹10,000 crore Fund of Funds for startups and enhanced SME/MSME credit facilities will continue to encourage entrepreneurship across the board and in technology-led innovation, in particular. This, combined with existing policy-driven support for clean energy, will have a far-reaching impact on industries like semiconductors and automotive, accelerating EV adoption, enhancing chip design capabilities, and fostering broader technology advancements. The initiatives around lithium-ion batteries and other components that go into Electric Vehicles will drive up local innovation and manufacture not just of the finished product but also spur the development of a much-needed manufacturing ecosystem.
The plan to establish a national framework for Global Capability Centers in tier 2 cities will help India reap the benefits of its current and continued investments in skills and higher education beyond the metros, thereby creating job local opportunities and curbing urban migration.“
Aman Sarin, Director & Chief Executive Officer, Anant Raj Limited
“It is a well-balanced budget that not only promotes macro-level economic stability but also delivers direct financial relief to individuals and industries.
For the real estate sector, the government has reinforced its support for stalled housing projects through the SWAMIH Fund, ensuring the timely completion of financially stressed projects. This initiative will provide relief to lakhs of homebuyers who have been waiting for possession, instilling renewed confidence in the sector and boosting overall housing demand.
A major highlight of the budget is the introduction of significant tax relief measures, marking one of the most notable savings opportunities for taxpayers in recent years. With enhanced disposable income, individuals will have greater purchasing power, improving affordability in the housing market. This is expected to drive higher demand in the affordable and mid-segment housing categories, as potential homebuyers will find it easier to service home loans and invest in real estate.”
Gaurav Burman, Managing Director, APAC Operations, 75F
“The focus on accelerating India’s clean energy transition and infrastructure modernization is much needed to meet India’s goal to become a global powerhouse by 2047. Complementing this vision, incentivizing electricity distribution reform, and supporting clean-tech manufacturing aligns well with the urgent need for energy efficiency in commercial buildings.
We believe that smarter HVAC systems with automation, and predictive energy management technology will play a pivotal role in reducing carbon footprints in our country today. With India rapidly urbanizing, this is much needed. The National Manufacturing Mission is also set to boost domestic value addition in critical sectors. That being said, the challenge will now be to ensure seamless adoption of these reforms and to ensure complete cooperation within the industry.“
Vineet Dhawan, Founder & CEO, Digital Convergence Technologies
“The Union Budget of 2025 has included a new set of initiatives that will prove to be transformative for the technology sector, particularly in deep-tech innovation and the expansion of Global Capability Centers (GCC) in India. With a sum of ₹20,000 crore allocated for private-sector Research, Development, and Innovation and the proposition of a ‘Deep Tech Fund of Funds’, the government has committed to making India a technology leader. Once implemented, these initiatives will catalyze the next-gen startup evolution and accelerate projects in the areas of Artificial Intelligence, cloud migration, and cybersecurity.
Further, we are also excited to see how the national framework for promoting GCCs in emerging tier 2 cities will encourage talent availability, infrastructure improvement, and industry outreach. We hope this results in not just decentralized growth but also in growing various domestic talent pools. All in all, we observe some good steps taken towards continuing India’s prominence among global technology leaders.“
Saurav Ghosh, Co-founder of Jiraaf
“The boost to consumption by extending tax slabs and removing tax for income up to 12L could prove to be significant to revitalize the economy. The government has put more money in the hands of the taxpayer. We hope the new tax bill promised by the finance minister would make tax compliance easier and reduce the effective tax rate. It would be important to wait for the new tax bill before planning expenses and investments. Unleasing the consumption potential could benefit MSMEs as well. It was also encouraging to see the government focus on MSMEs as engine of growth. We hope to see private capex pick up from the prudence that the government has maintained on the policy front. The repositioning India post as a core logistics player can also help connect remote destinations and speed up growth.”
Manish Goel, Founder and MD, Equentis Wealth Advisory Services
“The Union Budget 2025-26 delivers a strong push for middle-class taxpayers, making personal finance a key beneficiary. With zero tax up to ₹12 lakh under the new tax regime and simplified TDS/TCS rules, individuals will have higher disposable incomes, driving consumption and savings. The rationalization of tax slabs and compliance relief further eases financial planning, making this budget a major step toward a more taxpayer-friendly system.
Beyond tax relief, the budget supports long-term wealth creation through pro-growth policies, infrastructure investments, and MSME incentives. The ₹10,000 crore Alternate Investment Fund (AIF) for startups and higher MSME credit limits aim to boost entrepreneurship and job creation, fostering an environment where individuals can benefit from expanding economic opportunities.”
Raghvendra Nath, MD, Ladderup Wealth Management
“After a long time, the middle class has a reason to cheer. By moving the tax exemption to Rs.12 lacs, the current income tax proposal is going to leave a lot of money in the hands of the middle class. While the government is foregoing Rs.1 lac crore of Income Tax, we think the increase in consumption can help offset some of the exchequer loss. On the fiscal side a budget estimate of 4.4% is tad on the higher side. I think the government recognizes the recent slowdown and the importance of govt expenditure to maintain the growth momentum. Bringing the gig workers into its notice, atleast through some medical relief, is a step in the right direction as 1 crore gig workers is a very large segment of the population and also the fastest growing portion of the employment pool. Overall the budget has balanced the large goals of Economic Development and the Social responsibility of the government.”
Anand Sahay, Global CEO of Xebia
The Union Budget 2025 signals a pivotal moment for AI-driven economic growth. The ₹20,000 crore Deep Tech Fund and private-sector R&D push are important steps, but execution will define their true impact. AI must move beyond pilots and become a core part of business strategy, efficiency, and competitiveness.
India’s greatest strength is its vast STEM talent and rapidly expanding AI-skilled workforce. With Global Capability Centres growing beyond metros, AI adoption is no longer limited to specific industries—it is transforming BFSI, manufacturing, retail and other industries at scale.
The priority now is scaling AI where it delivers measurable business impact. AI automation, supported by a skilled workforce and clear regulatory frameworks, will drive new revenue streams, optimize costs, and set new efficiency benchmarks. Businesses that integrate AI into core operations today will lead in the AI-driven economy.“
ADVERTISEMENT
