Budget 2025 LIVE: FM bets on tax cuts to spur growth; Oppn calls it 'election package for Bihar'

Union budget 2025-26 Live Updates: Modi govt has made some big announcements including changes in the new tax regime with taxpayers not having to pay any income tax on earnings up to Rs 12 lpa

6:06 PM

'Tax waivers, deductions on certain essential drugs are a welcome step'

Speaking on the Budget, VP Chandrasekaran, COO,  SRM Global Hospitals, said, "The Union Budget 2025 has made some positive moves in the healthcare sector... The tax waivers and deductions on certain essential drugs are a welcome step. However, a more impactful reform would be a complete tax exemption on all healthcare-related products, making medical care more affordable for the public."

 

6:04 PM

'Welcome the strong push to energise consumption'

According to Akshat Seth, MD & CEO of HIL Limited, a part of CK Birla Group, "The Union Budget 2025-26 underscores the government’s strong push for infrastructure-led growth together with the themes of innovation and global competitiveness. The Rs 1.5 trillion allocation for 50-year interest-free loans to states, enhanced outlay for the Jal Jeevan Mission to achieve 100 per cent household water supply, and the introduction of public-private partnership plans can be pivotal for strengthening India’s infrastructure."

 

He added, "We welcome the strong push to energise consumption by putting more money in the hands of people, coupled with a forward looking investment push in infrastructure, nuclear power, artificial intelligence and geo-spatial missions. We are confident that this one-two punch will drive economic expansion, create employment and boost demand for home and building solutions – a segment that we are deeply interested in."

6:03 PM

'Budget underscores strong commitment to research, development and innovation'

According to Kunal Patni, Executive Director and Country Head, Natural8 India, "The Union Budget 2025 underscores a strong commitment to research, development, and innovation, which will be instrumental in driving India's technological leadership on the global stage. The ₹20,000 crore allocation for private-sector-led R&D, along with the exploration of a Deep Tech Fund, presents a significant opportunity for startups and innovators to push boundaries in next-gen technology."

 

He added, "Encouraging collaboration between academia and the private sector through initiatives like the PM Research Fellowship Scheme will further accelerate breakthroughs in AI, blockchain, and other emerging fields. For industries like ours, which thrive on continuous innovation, these measures will create a more dynamic ecosystem for technological advancement. The focus now should be on efficient execution to ensure that these funds and opportunities translate into real, transformative impact."

5:28 PM

Rationalisation of slabs in new tax scheme to stipulate demand'

According to Nishant Arya, Vice Chairman & MD, JBM Auto Ltd, "The Union Budget 2025 prioritises private sector investment, MSME growth, and a strong domestic EV manufacturing ecosystem. A push for CleanTech manufacturing, including duty exemptions on EV battery production and critical minerals, aligns with the Prime Minister’s E-Drive scheme to accelerate green mobility and will further boost India’s mission to promote cells and battery manufacturing capacity."

 

He added, "This will not only lower production costs but also incentivize companies to scale up operations, drive technological advancements, and create high-value job opportunities for India’s youth alongwith setting up of 5 National Centres of Excellence. The addition of 120 new regional airports will increase demand for electric tarmac buses, further supporting sustainable transit."

 

5:25 PM

'Budget takes proactive approach to strengthen India’s financial markets'

According to Nikhil Aggarwal, Founder & Group CEO, Grip Invest, "The Union Budget 2025-26 takes a proactive approach to strengthen India’s financial markets by reducing the TDS on securitisation trusts from 25 per cent to 10 per cent and bringing it in line with other fixed income instruments like corporate bonds. This $20 billion a year market will now see great participation from all investor segments. Over the last 2 years retail investors have also started investing in this asset class and creating additional pool of capital for the Indian economy's growth."

 

He added, "Additionally, the introduction of the Partial Credit Enhancement Facility by NaBFID is a strategic move to support corporate bond issuances. By reducing credit risk for issuers, this initiative should encourage more corporations to tap the bond market for funding. Together, these measures are expected to broaden capital access, lower financing costs, and promote long-term stability in India’s credit and bond markets."

5:20 PM

'Budget will augment business growth and nation building'

According to PV Murthy, Head of Labour & Employment at Economic Laws Practice, "Finance Minister Nirmala Sitharaman’s measures to promote employment and entrepreneurship are in the right direction and would not only address the issue of unemployment but also will augment business growth and nation building. As part of the initiatives announced in the last budget, Corporates like TATAs have already started working actively towards internships which is gaining great traction. Announcing further measures in this budget will  build a sustainable momentum in the right direction!"

5:17 PM

Mandaviya hails Budget for transformative steps for gig workers

Union Labour & Employment Minister Mansukh Mandaviya on Sunday hailed the budgetary allocation for labour welfare, saying social security for gig workers is a transformative step. Finance Minister Nirmala Sitharaman on Saturday announced a social security scheme for one crore gig workers engaged with online platforms and said the government will provide them identity cards and facilitate their registration on the e-Shram portal. The move will help these platform workers get benefits of social welfare schemes run by various government agencies.

5:06 PM

'Budget provisions to reduce compliance burden'

Speaking on the Budget, Mitesh Jain, Partner, Economic Laws Practice, "In order to reduce the compliance burden on the assessee and administrative burden on the Transfer Pricing Officer, it is proposed that the assessee can exercise an option (to be validated by TPO) wherein the ALP determined by TPO for a particular year shall apply to similar transaction for following two consecutive years. The proposed provision is intended to reduce the compliance burden on the assessee and administrative burden on the TPO by avoiding the same transfer pricing analysis repeatedly every year for similar transactions. It may be noted that the proposed provision of block TP assessment will not be applicable for search cases."

5:03 PM

'Focus on nuclear energy a significant highlight of the Budget'

According to Satyadarshi Kunal, Partner at Saraf and Partners, "A significant highlight of the Budget is the focus on nuclear energy. The government has allocated substantial funds to develop and enhance nuclear energy infrastructure, aiming to increase the share of nuclear power in the country's energy mix. This includes investments in new reactor technologies, research and development activities, and the establishment of new testing facilities at national labs."

 

He added, "Further, the government's support for Small Modular Reactors (SMRs) development is expected to drive innovation and attract private investments in this emerging technology. The Budget underscores the need for amendments to the Atomic Energy Act to facilitate private sector participation in nuclear energy projects. These amendments are expected to streamline regulatory processes, enhance transparency, and provide a robust legal framework for the safe and secure development of nuclear energy infrastructure. The budget also addresses the Civil Liability for Nuclear Damage Act, emphasising the need for a balanced approach that protects public interests while encouraging private investments in the nuclear sector. The government has proposed measures to clarify liability provisions and ensure adequate compensation mechanisms for nuclear damage."

5:01 PM

'Budget will provide a major fillip in overcoming maritime sector constraints'

According to Nishant Shah, Partner at Economic Laws Practice, "The growth of Indian International Trade and considering the government's ambition to reach higher trade quantum, there is a concurrent need for strengthening the shipping sector. Currently, the Indian shipping sector is facing significant constraints from global competition as well as internal constraints arising on account of country's regulatory regime."

 

He added, "The current focus on the maritime sector and allocation of Rs 25,000 crores to this sector will provide a major fillip in overcoming these constraints and cater to growing Indian International trade, major portion of which is currently catered to buy foreign shipping companies. This is resulting in outflow of critical foreign exchange from the country."

4:55 PM

'Budget 2025 delivers a significant boost to India's startup ecosystem'

According to Joji Varghese, Founder and CEO, Print2Block, "The Union Budget 2025 delivers a significant boost to India's startup ecosystem, particularly in deep tech and innovation-driven sectors. The increase in loan limits from Rs 10 crore to Rs 20 crore, coupled with a moderated guarantee fee, will provide critical financial support to startups in key sectors under Atmanirbhar Bharat. This initiative will enable entrepreneurs to scale their ventures more effectively while reducing financial constraints."

 

He added, "One of the most notable announcements is the introduction of a Deep Tech Fund of Funds, a potential game-changer for India's next-generation startups. By fostering investment in AI, blockchain, and other cutting-edge technologies, this initiative positions India as a global leader in deep-tech innovation."

4:45 PM

'Budget to give a strong push to retail consumption'

Speaking on the Budget, Achint Setia, CEO Snapdeal, said, "This budget is welcome news for crores of Indians in the middle and lower income brackets. By leaving more money in their hands and encouraging savings and investments, the budget is likely to add a strong push to retail consumption and economic growth.”

4:34 PM

FM cites India's fiscal discipline as key to Moody's unchanged ratings

Finance Minister Nirmala Sitharaman on Sunday flaunted India's unblemished track record of not faltering on any of its fiscal consolidation or debt reduction targets as she seemed to shrug off the passiveness of agencies like Moody's which have not upgraded India's ratings.

4:29 PM

Budget 2025: ME-Card announced for credit access to MSMEs; key features

Union Finance Minister Nirmala Sitharaman, while presenting the 2025-26 Budget on February 1, announced significant reforms aimed at strengthening Micro, Small, and Medium Enterprises (MSMEs) and start-ups. To facilitate credit accessibility, the finance minister introduced a customised credit card scheme for micro enterprises (ME-Card) registered on the Udyam portal.

 

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4:25 PM

'Welcome the expansion of medical education'

According to Smeet Patel, Director, Mayflower Women’s Hospital, Ahmedabad, "The budget introduces key healthcare reforms, and I welcome the expansion of medical education, with 10,000 new seats this year and a plan to add 75,000 over five years. This will help address the doctor shortage, particularly in women’s healthcare."

 

He added, "Setting up daycare cancer centres in every district hospital is a crucial move towards improving access to cancer treatment, particularly for patients with cervical and ovarian cancers. Furthermore, the exemption of customs duties on 36 essential medications, along with Patient Assistance Programs, will help alleviate the financial strain on those fighting chronic and rare illnesses. A great move is the government’s push to strengthen urban healthcare—this will help women in low-income groups access better treatment options."

4:23 PM

'Budget will have a positive impact for citizens and companies alike'

According to Gagan Anand, Founder, Scuzo Ice ‘O’ Magic, India’s Fastest-Growing Gelato and Live-Popsicle Brand, "The Union Budget 2025 comes with a series of positive actions that will stimulate economic growth and have a positive impact for citizens and companies alike. Most noticeably, individual income tax exempted level has been boosted to Rs 12 lakh, effectively reducing taxes for most and putting additional purchasing power in citizens' pockets."

 

He added, "That will stimulate consumption, and in its wake, stimulate industries such as ours. Besides, the Finance Minister announced that credit guarantee cover for micro ventures will be boosted to Rs 10 crore, with a view to providing an additional Rs 1.5 trillion in credit in five years' time. That will provide much-needed financial boost to small ventures, and enable them to expand and generate additional jobs for citizens."

3:54 PM

'Union Budget sets the right direction with AI-driven education'

According to Kunal Vasudeva, Co-founder & Managing Director, Indian School of Hospitality, "The Union Budget 2025-26 sets the right direction with AI-driven education, research fellowships, deep-tech funding, and global skilling partnerships. These are crucial steps toward positioning education as an economic powerhouse. However, policy is always a work in progress—the real test is execution. If India is to leapfrog in education the way it did in digitisation, we need a 10X mindset in implementation, institutional accountability, and adaptability."

 

He added, "The focus must now shift to outcome-driven reforms — aligning research with national priorities, empowering universities to lead innovation, and embedding competency-building over mere skilling. This decade will define India’s global standing. Bold policy must now meet bold execution."

3:51 PM

'Budget aligns India's tax structure more closely with global standards'

According to Harsh Patel, Founder - Water & Shark, "The Union Budget 2025-26's decision to raise the income tax exemption threshold to ₹12 lakh is a commendable move. This reform not only provides significant relief to middle-class taxpayers but also aligns India's tax structure more closely with global standards, potentially enhancing economic equity and consumption."

3:00 PM

India macro fundamentals strong, rupee not depreciating against any currency other than US dollar: FM

Finance Minister Nirmala Sitharaman on Sunday rejected criticism over the slide of the Indian rupee, saying it has depreciated only against a strengthening US dollar but remained stable against all other currencies because of the strong macroeconomic fundamentals.

 

In an interview with PTI, she said a 3 per cent depreciation in the rupee against the US dollar in past few months is a matter of concern as it makes imports costlier, but she rejected criticism that the local currency has seen all-round weakness. "I am concerned but I will not accept the criticism that 'Oh Rupee is weakening!' Our macroeconomic fundamentals are strong. Rupee wouldn't be stable against all the currencies if the fundamentals were weak," she said.

2:39 PM

'Specific focus on SMEs and start ups will accelerate innovation and deep-tech development'

According to Kunal Mundra, CEO & Co-founder, Electrifi Mobility,  "The Union Budget has taken significant steps towards accelerating India's transition to sustainable transportation. In particular the focus on domestic EV battery manufacturing as well as the duty exemptions on related capital goods will ensure that as a country we not only grow EVs in the immediate term but also create the foundation for the growth over the longer term by creating a robust local manufacturing foundation with limited cross-border dependence."

 

He added, "The specific focus on SMEs and start ups across multiple initiatives will also further accelerate the innovation and deep-tech development in the nation which will be the bedrock for our economy and our journey to net-zero in the years to come."

2:25 PM

'Removing TCS on education loan remittances much-needed relief for students'

According to Dr Priestly Shan, Vice-Chancellor, Alliance University, “The Budget 2025 reflects a progressive vision for strengthening India’s education, skilling, and research ecosystem. As a private university committed to fostering innovation and industry-relevant learning, we welcome key announcements such as the Centre of Excellence in Artificial Intelligence for Education, which will cost Rs 500 crore, the establishment of five National Centres of Excellence for Skilling with global expertise and partnerships, and the Bharatiya Bhasha Pustak Scheme, which will promote Indian language books in digital form for school and higher education."

 

He added, "Removing TCS on education loan remittances is a much-needed relief for students aspiring for global education. Furthermore, the government’s focus on expanding medical education with 10,000 additional seats this year and a target of 75,000 new seats in the next five years is a commendable step toward strengthening India’s healthcare sector."

2:13 PM

'Budget shows Centre's commitment to staying at forefront of the AI revolution & empowering entrepreneurs'

Speaking on the Budget, Pravesh Dudani, Founder and Chancellor, Medhavi Skills University, said, “Budget 2025-26 is a crucial step towards advancing skill development and employability of Indian youth as it reiterated that Viksit Bharat encompasses 100 per cent skilled labor with meaningful employment. The proposal of establishing 5 National Centers of Excellence for Skilling with global expertise and partnerships is a transformative move to equip the youth with industry-relevant skills."

 

He added, "The setting up of AI Centre of Excellence for education with Rs 500 cr outlay and the Rs 20,000 crore investment in innovation, coupled with the proposed DeepTech Fund of Funds, underscores the Centre's commitment to staying at the forefront of the AI revolution and empowering entrepreneurs. We are particularly excited about the industry-academia collaboration opportunities the CoE initiatives will invite, paving the way for groundbreaking innovation and skill development."

2:02 PM

'Huge tax relief to Indian middle class is sure to boost consumer spend'

According to Ajay Singhania, MD & CEO of EPACK Durable, "The National Manufacturing Mission outlined in this budget is a significant step forward in strengthening India’s position as a global manufacturing hub. At EPACK Durable, we welcome this initiative, as it aligns with our commitment to 'Make in India' and expanding our export footprint. Government-backed incentives such as the PLI scheme and MSIPS have already played a crucial role in our growth, leading to a 115 per cent increase in employment in the sector from FY20 to FY24."

 

He added, "And now, the introduction of the new National Manufacturing Mission, coupled with the blueprint for industry 4.0, demonstrates the government's strong commitment to industrial growth. We also welcome the Government’s move to integrate domestic manufacturing with global supply chains which will facilitate the advent of advanced technology and innovation in Indian manufacturing going forward."

1:57 PM

'Welcome plan to increase number of seats at medical colleges and hospitals'

According to Prof Supriya Pattanayak, Vice Chancellor, Centurion University, Odisha, "It is an encouraging sign that the government has continued to put adequate focus on the need for skill development for the second consecutive year. With new National Centres for Skilling announced by the Finance Minister, it is evident that the government has a vision to facilitate the creation of industry-ready workforce that can strengthen India's global positioning. We also welcome the plan to increase the number of seats at medical colleges and hospitals, as it will play an instrumental role in enhancing healthcare across the country."

 

She added, "We further welcome the decision to increase seats at eminent institutions like IITs, as well as the outlay to establish multiple Centres of Excellence in AI for Education. We also request the government to consider policies that promote and enhance skill-integrated higher education at existing public as well as private institutions, especially in regions outside the metro, much the allocation for national framework to promote global capabilities sector in tier 2 cities. With the Finance Minister herself pointing towards the Industry 4.0 banking on high skill and education, this pretty much becomes the need of the hour."

1:53 PM

Modi govt keeps prioritising island communities: Lakshadweep Yuva Morcha

Lakshadweep Yuva Morcha has expressed support for Budget 2025, presented by Union Finance Minister Nirmala Sitharaman on Saturday. According to an official statement by the Yuva Morcha, "On Saturday, Union Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26, unveiling a forward-thinking vision for India's marine sector with a specific focus on the Andaman and Nicobar and Lakshadweep islands. The government's unwavering commitment to empowering island communities and advancing the fisheries sector was evident in the Budget speech."

1:50 PM

'National Manufacturing Mission will strengthen domestic capabilities'

According to Nikhil Sawhney, VC&MD, Triveni Turbines, "The government’s renewed commitment to manufacturing excellence and energy sector reforms marks a transformative step for India’s industrial growth. The National Manufacturing Mission and enhanced credit support for MSMEs will not only strengthen domestic capabilities but also drive energy-efficient solutions across industries. Additionally, the emphasis on clean-tech manufacturing, power sector reforms, and the Nuclear Energy Mission opens new avenues for sustainable energy innovation. At Triveni, we see these initiatives as a catalyst for innovation, sustainability, and self-reliance, reinforcing India's leadership in advanced energy solutions."

1:28 PM

'India accelerating towards a future of reduced emissions and energy self-reliance'

According to Kartick Nagpal, President of Rosmerta Technologies, “We are aligned with the Union Budget 2025-26’s focus on advancing India’s transition to sustainable mobility and infrastructure. With strategic investments in EV adoption, clean energy, and green public transport, India is accelerating towards a future of reduced emissions and energy self-reliance."

 

He added, "At Rosmerta, we are proud to support this vision through our sustainable solutions, including our Registered Vehicle Scrapping Facility, Diesel Exhaust Fluid, and Automated Testing Stations (ATS), all of which contribute to reducing environmental impact. Over the years, we’ve showcased a blend of advanced solutions and sustainable vehicle scrapping practices, alongside impactful community initiatives, driving a cleaner, more efficient mobility ecosystem. Together, we are paving the way for a greener, more sustainable future in mobility.”

1:05 PM

'Income tax cuts will give much-needed fillip to consumer durables'

According to Subhash Chand Aggarwal, Chairman & MD, SMC Global Securities Ltd, "The Finance Minister's latest budget announcement is a New and refreshing, packed with initiatives that promise to boost consumption, entrepreneurship, agriculture and economic growth. The capital expenditure for the financial year 2025-2026 has been raised to Rs 11.2 trillion. In FY25, the target was Rs 11.11 trillion, which is revised to Rs 10.18 trillion."

 

He added, "Finance minister has lowered the fiscal deficit target for FY26 to 4.4 per cent of the GDP from the budget estimate of 4.9% in FY25. The government has kept its financial year 2026 disinvestment target at Rs 47,000 crore. For financial year 2025, the revised estimates stands at Rs. 33,000 crore, compared to the budgeted estimate of Rs 50,000 crore. One of the most significant takeaways is the tax exemption for income up to Rs 12 lakh under new tax regime with revised tax slab, will undoubtedly increase disposable income and give a much-needed fillip to consumer durables, automobiles, and consumer discretionary sectors." 

 

12:39 PM

'Every budget of Modi govt is an election package': Sanjay Raut on Bihar specific announcements in Budget

Amid opposition criticism on the Union Budget, Shiv Sena (UBT) leader Sanjay Raut on Sunday claimed that every budget of the Prime Minister Narendra Modi's government's was an election package and this time too proved no exception with maximum sops given to Bihar the state which will see elections later this year.

 

"Election is due in Bihar - Modi government's every budget is an election package. This time there is an election in Bihar and hence they have allocated the maximum amount to Bihar," Raut told media persons.

12:39 PM

'Budget announcements to bolster AI-related education, research'

According to Ajay Garg, Director and CEO, SMC Global Securities Ltd, "The Finance Minister’s 2025-26 budget focuses on transformative reforms across six key sectors: taxation, financial services, power, urban development, mining, and regulatory changes. The government's capital expenditure (capex) for FY26 is set at Rs. 11.2 trillion, slightly above the Rs 11.11 trillion target for FY25. In terms of disinvestment, the target for FY26 is Rs. 47,000 crore, while FY25’s revised estimate stands at Rs. 33,000 crore, lower than the initial Rs 50,000 crore forecast. A notable increase is the allocation for defense, which has seen its capex spending double under the Modi administration, now accounting for 27.7 per cent of total expenditure in FY24-25, up from 25.2 per cent in the previous year."

 

He added, "Additionally, the budget introduces the income tax exemption for up to Rs 12 lakh under new tax regime with revised tax slab, benefiting sectors like consumer durables, automobiles, and FMCG. Proposals include exemptions on withdrawals from National Savings Scheme accounts and extending startup incorporation benefits to 5 years. In a move to support domestic manufacturing, the government has increased the Basic Customs Duty on certain electronic products while exempting duties on 36 lifesaving drugs. The budget also promotes regional connectivity through an expanded UDAN scheme and strengthens rural credit through enhanced loan limits for farmers under the Kisan Credit Cards program."