Tech leaders, startup founders, investors welcome Budget 2025-26

India’s technology leaders, investors and startup founders have welcomed tax breaks and incentives in Finance Minister Nirmala Sitharaman’s Budget for 2025-26.

 

Kalyan Krishnamurthy, chief executive officer (CEO) of e-commerce giant Flipkart Group, said the Budget is a perfect booster shot for a self-reliant and Viksit Bharat.

 

With significant tax relief for the middle class, streamlined tax deduction norms, and a strong push for local manufacturing, Krishnamurthy said the Budget puts more power in the hands of consumers to boost their purchasing capacity and access to a wider range of quality products.

 

“The government’s focus on MSME growth, women entrepreneurs, and startups will not only strengthen local businesses but also enhance affordability and choice for millions of online shoppers,” said Krishnamurthy.

 

Dhiresh Bansal, chief financial officer (CFO) at e-commerce firm Meesho, said increasing the investment and turnover limits for MSME classification is a game-changer that will drive scale, innovation, and job creation. “The big boost for sectors such as toys, footwear and many others will lead to improved domestic capabilities in manufacturing and exports,” said Bansal.

 

AI, deeptech

 

The Budget announced a new Fund of Funds (FoF) with an expanded scope of Rs 10,000 crore. The initial FoF, announced by the government in 2016 with an investment of Rs 10,000 crore managed to catalyse commitments worth Rs 91,000 crore, said Sitharaman. The government will explore a deeptech FoF to provide a stimulus to the next generation of startups incubated in the country.

 

Arundhati Bhattacharya, chairperson and CEO of technology company Salesforce India, said the Budget is more than a fiscal plan—it is a bold blueprint for a stronger Digital India, prioritising technology-led development and inclusive economic growth.

 

Bhattacharya said the government’s commitment to advancing artificial intelligence (AI) and like deeptech FoF and 10,000 fellowships for technological research in IITs and IISc reflects a vision for India to lead in automation and emerging technologies. “The focus on Global Capability Centers (GCCs) in Tier-II cities will further unlock AI-powered digital services, fostering regional innovation and new employment opportunities at scale,” said Bhattacharya.

 

Prateek Maheshwari, co-founder of edtech firm PhysicsWallah (PW) and chair of India EdTech Consortium, said the recognition of AI’s role in education is commendable, with the Rs 500 crore Centre for Excellence in AI for Education paving the way for smart, adaptive learning. “These initiatives lay a strong foundation for a future-ready, inclusive, and tech-driven education ecosystem in India,” said Maheshwari.

 

Puneet Chandok, president of Microsoft India and South Asia, welcomed the minister’s announcements of establishing a Centre of Excellence for AI in Education and creating a deep tech fund to catalyze future startups. “As the Economic Survey 2025 highlights, India must capitalize on AI opportunities and leverage its young and dynamic population to create a tech-forward workforce for India and for the world,” said Chandok. “This resonates deeply with Microsoft’s work in the country and our commitment to put AI in the hands of everyone.”

 

He said Microsoft India recently announced plans to equip 10 million Indians with essential AI skills by 2030.

 

Awais Ahmed, founder and CEO of space technology company Pixxel, said a deeptech Fund, Rs 20,000 crore investment in private sector-led R&D, an enhanced credit guarantee cover and expanded PLI schemes for semiconductors and high-tech industries will drive breakthroughs in emerging technologies. “The National Geospatial Mission and National Manufacturing Mission will bolster high-tech domestic production and reinforce India’s global leadership,” said Ahmed. “Lower customs duty will further reduce input costs, deepen value addition, and enhance manufacturing and exports. This is arguably one of the most impactful developments for the private space industry since the space policy, providing a massive boost for Indian companies to compete globally.”

 

Gajendra Jangid, co-founder and CMO of pre-owned vehicles platform CARS24, said the introduction of a Rs 10,000 crore FOF for startups and the proposed deeptech Fund of Funds signal a robust push for innovation, particularly in high-impact sectors. Additionally, the extension of tax benefits for start-ups incorporated before April 1, 2030 provides much-needed financial relief and stability for early-stage ventures.

 

While these initiatives are promising, Jangid noted that many Indian startups have incorporated abroad due to regulatory complexities. He said the introduction of simplified regulations for 'reverse flipping' in India, effective from September 2024, is a step in the right direction. “But to truly make India a global startup hub, we need to fast-track its implementation and further streamline the process,” said Jangid.

 

Gopal Jain, managing partner at Gaja Capital, said the introduction of a new Fund of Funds for AIFs, the Deeptech FOF, and a Center of Excellence for AI in Education are all promising steps toward fostering a knowledge-driven economy.

 

“The Finance Minister’s emphasis on a ‘light-touch regulatory framework based on principles and trust’ is an important step forward. Regulation should enable, not hinder, business growth, and this approach signals a progressive shift in policy thinking. A business-friendly environment, backed by stability and trust, is key to unlocking India’s next phase of economic expansion,” said Jain.

 

Gig workers

 

Aadit Palicha, co-Founder and CEO at quick commerce firm Zepto said the introduction of social security measures for gig workers in the budget is a key highlight, acknowledging their valuable contribution to the economy.  “As a consumer tech company, we are excited about the opportunity to add buoyancy to the economy, especially as demand increases across emerging markets,” said Palicha.

 

Rohit Kapoor, CEO of Food Marketplace at delivery firm Swiggy, said the focus of the government is on the poor, youth, farmers and women. “At Swiggy, in one way or another, we are involved in all these facets- our workforce and delivery partner cohort is extremely young and we are creating significant job opportunities, we are getting more and more women in formal economy through entrepreneurship and gig opportunities, our retail business has a direct beneficial impact on our farmers,” said Kapoor.

 

Arpit Chug, CFO at fintech giant Razorpay, said the budget strikes a thoughtful balance between stimulating consumption, maintaining fiscal prudence, and fostering long-term economic growth. He said the budget reinforces the government’s commitment to building a business-friendly regulatory environment—one that empowers startups and MSMEs to scale with confidence. He said the push towards MSMEs with enhanced credit guarantees, the introduction of special cards for micro-enterprises, and the Rs 30,000 UPI limit on credit cards for street vendors is a game-changer.

 

“This is promoting financial inclusion, driving digital transactions, and creating employment,” said Chug.

Chug said the establishment of a mechanism under the Financial Stability and Development Council (FSDC) to assess financial regulations is a proactive step toward ensuring regulatory adaptability. “By fostering stability and clarity, this initiative will provide much-needed confidence to financial institutions and fintech players alike,” he said.

 

Manufacturing

 

Aravind Melligeri, chairman and CEO of Aequs, a precision manufacturing company, said the continuing tilt towards strengthening India’s manufacturing sector in the budget is more than welcome and a positive for growth. He said the stress on labor-intensive sectors like textiles, footwear and particularly toys, is something the industry has been looking forward to for some time.

 

For instance, he said toy manufacturing can be a force multiplier for employment, with every $10 million made in revenue by the sector having the potential of generating 1000 new jobs. Aequs, which entered toy manufacturing in 2016, also set up India’s first global scale toy manufacturing cluster, the Koppal Toy Cluster in 2021.

 

“Given the current market conditions and also long-term need to make India a global toy manufacturing hub, the emphasis on clusters for toy manufacturing is welcome,” said Melligeri.  “Having said that, we are awaiting some PLI announcements in the near future for components for consumer electronics, and manufacturing of toys which will provide a further fillip to Make in India.”

 

Chetan Maini, co-founder and chairman of SUN Mobility, which provides energy infrastructure and services for EVs, said the introduction of a National Manufacturing Mission is a welcome move designed to encourage small, medium, and large manufacturers, thereby promoting Make in India. Maini said this initiative can potentially position India as a global hub for clean technology manufacturing.

 

He said the exemption of customs duty on capital goods for EV battery manufacturing, along with the Rs 20,000 crore allocation for private sector-driven R&D, will undoubtedly spur innovation in battery and clean technologies. “As India starts to manufacture EV batteries, the proposed reduction in import duties for critical minerals will help reduce costs,” said Maini.

 

While this Budget aligns with India’s broader vision for progress and positive steps on promoting clean technologies, Maini said there remains an urgent need to rationalize the GST disparity between EVs and batteries that the EV industry needs. In addition, he said policies to enable a level playing field for battery swapping and fixed-battery electric vehicles can further accelerate investments and adoption of electrical mobility in the country.

 

Anirudh Arun, co-founder and CEO of BluSmart Fleet, the electric ride-hailing and EV charging infrastructure network, said the National Manufacturing Mission, under the broader Make in India initiative, is a game-changer in democratizing access to EVs. “By promoting domestic production of EV components—including batteries, motors, and controllers—and exempting an additional 35 capital goods for EV battery manufacturing, the budget lays a solid foundation for Clean Tech Manufacturing, aligning seamlessly with our vision of a cleaner and greener India,” said Arun.