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The Union Budget 2025 has received widespread appreciation from industry leaders across various sectors, highlighting its emphasis on economic growth, infrastructure development, sustainability, and MSME empowerment. Experts have praised its focus on strengthening India’s industrial foundation, fostering innovation, and enhancing global competitiveness. Below are key industry reactions to the budget:
Textile Industry: Boosting Cotton Productivity
Naveen Malpani, Partner and Consumer Industry Leader, Grant Thornton Bharat, lauded the government’s five-year mission to enhance cotton productivity with high-quality, long-staple varieties.
“As the world’s second-largest cotton producer, India’s textile and apparel exports stood at USD 35.87 billion in FY24, accounting for 8% of total merchandise exports. However, India continues to import cotton to bridge the demand-supply gap, affecting cost competitiveness. By boosting domestic productivity, this initiative will stabilize raw material availability, reduce import dependence, and enhance the global competitiveness of India’s textile sector, where 80% of capacity is driven by MSMEs. With textiles contributing 2.3% to GDP and employing over 45 million people, this mission aligns with India’s broader strategy to strengthen manufacturing and exports.”
Empowering MSMEs and AI in Education
Sachin Sharma, Partner at Grant Thornton Bharat, emphasized the budget’s impact on MSMEs, youth, and technological advancements:
“Budget 2025 accelerates growth by empowering youth, women, and farmers while strengthening MSMEs—the backbone of our economy. With expanded eligibility and credit support, MSMEs will drive exports and job creation. A ₹500 crore investment in the Centre of Excellence for AI in Education is not just a commitment to technology; it's a pledge to empower future generations. The enhanced UDAN scheme aims to add 4 crore flyers, expanding infrastructure and making air travel more accessible than ever. This budget is a bold step towards Aatmanirbhar and Viksit Bharat.”
MSME Credit Access and Formalization
Shantanu Bairagi, CEO of Veefin Capital, underscored the significance of credit accessibility and formalization for MSMEs:
“Availability of credit access, simplification of CKYC, and enhancement of credit guarantee covers for MSMEs, startups, and exporters stand out as key fiscal support measures. The government’s introduction of customized credit cards with a ₹5 lakh limit for registered businesses is a significant move, with 10 lakh credit cards expected to be issued in a year. Additionally, enhancements in investment and turnover limits for MSME classification will accelerate digitization and ensure wider access to commerce and capital.”
He further highlighted India’s digital public infrastructure (DPI) boost:
“The announcement of ‘BharatTradeNet’ (BTN) as a unified platform for trade documentation and financing solutions strengthens India’s position as a leader in digital trade facilitation.”
Strengthening Industrial and Economic Growth
Mr. S Sunil Kumar, Country President, Henkel Adhesive Technologies India, noted the budget’s pro-business environment:
“The rationalization of customs tariffs will enhance India’s global competitiveness, benefiting manufacturers. The focus on MSMEs—crucial contributors to GDP and exports—will empower them to diversify offerings and expand internationally. The ambitious 100 GW nuclear target represents a bold commitment to sustainable growth, driving investments in infrastructure, technology, and human capital.”
He also praised the skill development focus:
“The government’s emphasis on skill development, particularly in the nuclear and footwear sectors, will create thousands of jobs and strengthen India’s global supply chain position.”
Infrastructure and Mobility Innovation
Sanyam Gandhi, Whole-time Director, Chartered Speed, highlighted infrastructure growth and PPP opportunities:
“The government’s push for Public-Private Partnerships (PPP) in infrastructure, including a ₹1.5 lakh crore allocation for 50-year interest-free loans, creates strong opportunities for urban development, better infrastructure, and mobility innovations. The push for EV manufacturing will accelerate multimodal transport and clean energy initiatives. Additionally, the proposed no-income-tax slab for earnings up to ₹12 lakh will boost consumption and liquidity in the economy.”
Electric Vehicle and Local Manufacturing Push
Atul Aggarwal, Managing Director, Sterling Tools Limited, commended the budget’s focus on the EV sector:
“The introduction of the National Manufacturing Mission will significantly boost local manufacturing by improving ease of doing business, technology availability, and workforce readiness. This will support the localization of EV components, reduce import dependence, and create high-quality, sustainable mobility solutions for India and beyond.”
The Union Budget 2025 has been met with positive feedback from industry leaders, who see it as a strategic move toward strengthening India’s economic resilience, promoting innovation, and positioning the country as a global leader in various sectors. With an emphasis on MSMEs, infrastructure, AI, and clean energy, the budget paves the way for a dynamic and self-reliant India.