The Union Budget 2025-26 has received positive reactions across industries, with experts lauding its focus on economic reforms, ease of doing business, and growth-oriented policies. From tax reforms to mergers and acquisitions, financial inclusion, and increased foreign direct investment (FDI), the budget has set the tone for India’s economic trajectory. Here’s a sector-wise breakdown of expert reactions.

Mergers & Acquisitions (M&A)

Rajesh Narain Gupta, Founder and Chairman, SNG & Partners, Advocates & Solicitors, described the budget as “reformative,” emphasizing its impact on agriculture, rural sectors, MSMEs, BFSI, investments, hospitality, housing, and financial inclusion. He welcomed the government’s move to simplify M&A procedures and establish a Regulatory Reforms Committee to promote trust-based economic measures. The additional decriminalization of over 100 provisions across various laws was also seen as a positive step.

MSME Sector & Postal Network Expansion

Dhruv Chopra, Managing Partner, Dewan P N Chopra & Co, highlighted the government’s initiative to transform India’s vast postal network into logistics hubs, enabling entrepreneurs, women, and MSMEs to leverage these resources for growth. With over 164,987 post offices, including 149,164 in rural areas, this move is expected to enhance last-mile connectivity and empower small businesses.

Startups & DeepTech Fund

The budget has prioritised entrepreneurship with a Fund of Funds to support startups across 27 key sectors. The government’s infusion of an additional INR 10,000 crore into this fund, bringing the total allocation to INR 20,000 crore, is expected to fuel startup growth. Additionally, INR 20,000 crore has been allocated to a DeepTech Fund, supporting research and development in India. This includes 10,000 fellowships for innovation at IITs and other premier institutions, fostering advanced technology ecosystems.

Income Tax Reforms

Parveen Kumar, Partner – Direct Tax, Dewan P N Chopra & Co, noted that the New Income Tax Bill will be introduced next week, replacing the 64-year-old legislation. He emphasized its role in simplifying compliance and making tax laws more understandable. The Finance Minister reaffirmed the “trust first, scrutinize later” approach, reinforcing the government’s commitment to easing tax compliance.

Foreign Direct Investment (FDI) in Insurance

FDI in the insurance sector has been increased from 74% to 100%, provided companies retain premium investments within India. Dhruv Chopra welcomed the move, noting that it will facilitate capital inflows and expansion in the insurance industry. Manoj Purohit, Partner & Leader, FS Tax, BDO India, termed it a “landmark reform,” emphasizing its potential to boost penetration and solvency in the sector, ultimately ensuring ‘Insurance for All’ by 2047.

Basic Customs Duty & Trade Facilitation

Shivashish Karnani, GST Division, DPNC Global, pointed out the removal of the 10% Social Welfare Surcharge on 82 tariff lines, boosting imports. Exemptions on 36 life-saving drugs and capital goods for lithium-ion and mobile phone battery manufacturing will enhance the healthcare and EV industries.

Additionally, the proposal to set a time limit of two years (extendable by one year) on provisional assessment under customs law aims to improve transparency and reduce compliance burdens.

Manufacturing & MSME Growth

Dinesh Kumar, Partner, Indirect Tax, BDO India, welcomed the Focus Product Scheme for non-leather footwear manufacturers, helping them stay competitive amid rising costs. Nitesh Mehta, Partner, M&A Tax and Regulatory Services, BDO India, applauded the increased turnover and investment limits for MSME classification, which will allow more companies to avail of MSME benefits.

The credit guarantee for MSME startups has been increased from INR 10 crore to INR 20 crore, which, according to Manoj Purohit, will enable greater capital infusion and expanded lending capacity for banks.

Electric Vehicles (EV) & Clean Tech

Maulik Manakiwala, Partner, Indirect Tax, BDO India, noted that the National Manufacturing Mission will support domestic manufacturing of EV batteries, solar PV cells, and wind turbines. This aligns with India’s shift towards green energy and sustainable development.

Export Promotion & Customs Reforms

Gyanendra Tripathi, Partner & Leader (West), Indirect Tax, BDO India, hailed the ‘Trust first, scrutinize later’ approach in trade facilitation, simplifying cargo clearance and customs processes to enhance India’s export competitiveness.

Rahul Dutia, Partner, Indirect Tax, BDO India, emphasized the Export Promotion Mission, which integrates inter-ministerial coordination and a unified trade documentation platform to boost international trade.

National Centre for Skilling

Rajitha Boorugu, Partner, Indirect Tax, BDO India, welcomed the establishment of a National Centre for Skilling in collaboration with global institutions. This initiative aims to bridge skill gaps in advanced manufacturing technologies, aligning with the Make in India vision.

Bilateral Investment Treaties & Mergers

Prashant Bhojwani, Partner, Corporate Tax, BDO India, stated that the framework for bilateral investment treaties will be modified to attract higher foreign investments.

Anish Shah, Partner, M&A Tax and Regulatory Services, BDO India, noted that relaxation in fast-track merger provisions will streamline the consolidation process and reduce compliance burdens.

E-Visa & Tourism Growth

Deepashree, Partner, Global Employer Services, BDO India, highlighted the streamlining of e-visa schemes and fee waivers to promote medical, spiritual, and heritage tourism. This move will enhance India’s attractiveness as a global tourism hub.

Also Read | Union Budget 2025-26: Accelerating Growth, Empowering Citizens, and Strengthening the Economy

Tax Code & Transfer Pricing

Munjal Almoula, Head of Tax, BDO India, stated that the new tax code will prioritize clarity and predictability, reducing litigation. The proposed three-year block transfer pricing audit system is expected to ease compliance and reduce documentation challenges for multinational corporations.

The Union Budget 2025-26 has received positive responses from industry leaders, with key reforms aimed at simplifying regulations, enhancing investment opportunities, and boosting domestic manufacturing and exports. With a strong emphasis on trust-based governance and ease of doing business, the budget sets the foundation for India’s sustained economic growth in the coming years.

Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.

"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!