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The Union Budget 2025-26 has been met with positive reactions from various industry leaders, reflecting the government’s emphasis on technological advancement, sustainability, and economic growth. Key stakeholders from the semiconductor, agriculture, manufacturing, and recycling sectors have expressed their support for the initiatives outlined in the budget.
Semiconductor Industry: A Step Towards Global Recognition
Rajendra K Chodankar, Chairman & CEO of RRP Electronics Ltd., lauded the government’s decision to increase the allocation to the Ministry of Electronics and Information Technology (MeitY) by 48% to Rs. 26,000 crore. This substantial investment, which includes subsidies for semiconductors, is expected to accelerate India’s growth in the global semiconductor market.
“The welcome move by the Government to promote compound semiconductors is also very heartening and will indeed take India beyond horizons. We are very confident that the Government of India will announce Semiconductor Mission 2.0, which will boost the sector and put India on the world map. I am very confident that in the changing dynamics of the world, Indian semiconductor players like us and the others are going to play a major role, and the unstinted support by the Government of India and the State of Maharashtra is very pivotal in the short to long run,” said Chodankar.
Agriculture Sector: Strengthening Sustainable Practices
The budget's focus on sustainable agriculture has been praised by industry experts, particularly with the introduction of the PM Dhan Dhanya Krishi Yojana and enhanced credit support for farmers. These measures are expected to drive technological advancements and improve agricultural productivity.
Sanjay Shirodkar, Co-Founder of Wavar, emphasized the importance of these initiatives in promoting sustainable farming:
“The Union Budget 2025-26 reinforces the government’s commitment to sustainable agriculture and farmer empowerment. The introduction of the PM Dhan Dhanya Krishi Yojana and the enhanced credit support for farmers are welcome steps that will drive innovation and technology adoption in the sector. As a company dedicated to Integrated Pest Management (IPM) solutions, we see these initiatives as catalysts for a more resilient and eco-friendly agricultural ecosystem. By prioritizing sustainability, the budget lays the foundation for long-term agricultural growth, ensuring better productivity and profitability for farmers.”
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Manufacturing & Economic Growth: A Strong Push for Viksit Bharat 2047
Baba Kalyani, Chairman & MD of Bharat Forge Ltd., appreciated the budget’s focus on economic drivers and India’s long-term vision for development:
“The budget presents a strong focus on the inherent strengths of the Indian economy and key economic drivers of Viksit Bharat 2047.
The 3M's that bring me cheer are - Middle Class, MSMEs, and Make in India!
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Big boost to the salaried middle-class will accelerate economic growth
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Revised Classification and Exports push to help Indian MSMEs go global!
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Focused attention to 'Make in India' in HiTech and labor-intensive industries will attract investments.
I also welcome the launch of the Manufacturing Mission, the Exports Promotion Mission, and the Nuclear Energy Mission.
Initiatives such as Cancer Care Centers in every district across the country will further modernize the Healthcare and Medical Infrastructure across the country.
Special development measures to boost agricultural productivity, self-reliance in pulses, and leveraging 'India Post' to deliver financial services are expected to drive Rural Growth.
What is noteworthy is a special mention of revamping the Bilateral Investment Treaty Model - a sign of following an India First model amidst heightened global volatility.
The hallmark of successive governments under the leadership of Hon'ble Prime Minister has been continued thrust on ease of doing business, fiscal prudence, and investment-led growth.
This Budget continues to deliver on these three levers, and I am confident that these initiatives collectively signal a robust blueprint for India's progressive and inclusive development.”
Battery Recycling & EV Manufacturing: Strengthening India’s Circular Economy
A major highlight of the budget was the exemption of Basic Customs Duty (BCD) on critical minerals such as cobalt, lithium-ion battery scrap, lead, and zinc. This move is set to enhance domestic resource availability, reduce dependency on imports, and boost investment in battery recycling and EV supply chains.
Rajesh Gupta, Founder & Director of Recyclekaro, welcomed these provisions, stating:
“The Union Budget 2025 takes a decisive step towards strengthening India's battery recycling and manufacturing ecosystem. The exemption of Basic Customs Duty (BCD) on critical minerals like cobalt, lithium-ion battery scrap, lead, and zinc will enhance domestic resource availability, reduce dependency on imports, and accelerate value addition within India. This move aligns with India's vision for a circular economy, fostering investment in battery recycling and EV supply chains. The addition of new capital goods for EV and mobile battery manufacturing will further boost local production and job creation.”
Conclusion
The Union Budget 2025-26 has set the stage for transformative growth across key industries. From boosting India's semiconductor capabilities to fostering sustainable agricultural practices, strengthening the battery recycling ecosystem, and propelling manufacturing growth, the budget has laid a strong foundation for innovation and economic resilience. With proactive policies and increased allocations, India is poised to emerge as a leader in these critical sectors, ensuring long-term benefits for businesses and citizens alike.