Dr. Vikas Gupta, CEO and Chief Investment Strategist, OmniScience Capital

The Union Budget 2025-26 sets a transformative course for India’s economic growth, emphasizing infrastructure, MSMEs, agriculture, and digital advancements. With an outlay of ₹1.5 lakh crore for PPP infrastructure, the budget aims to significantly enhance roads, power, and related sectors, benefiting EPC, construction, and engineering firms. The government’s strong focus on power distribution, transmission, nuclear energy, and the power grid is set to modernize the sector, ensuring long-term sustainability.

A prudent approach toward fiscal deficit reduction and gradual debt control strengthens the outlook for Indian government bonds while supporting INR stability. Additionally, the push for critical minerals enhances India’s global defense positioning, and incentives for EV and battery technology underscore the country’s commitment to sustainable growth. Investments and capex allocation will accelerate expansion in banks and specialized infrastructure NBFCs, reinforcing the four key engines of the economy—agriculture, MSMEs, investments, and exports.

With added support for states to reform the power sector, this budget not only prioritizes short-term economic recovery but also lays the foundation for long-term sustainable development. India’s path to ‘Viksit Bharat’ is now clearer, backed by focused reforms and strategic capital deployment that ensure a prosperous and resilient future.

The progressive tax structure, regulatory reforms, and targeted investments establish a balanced approach to economic expansion and fiscal prudence. The Budget 2025-26 marks a significant milestone in India’s journey toward becoming a fully developed economy.

Mr. Bruce Keith, Co founder CEO, InvestorAi 

“While the Budget started with a big bang quite literally, the Honourable Finance Minister has announced a string of boosters for the Indian startup sector. The extensions to the loan programs make sense in the context of micro enterprises. However, the crucial fund of funds of Rs 10,000 crore will play a key role in boosting domestic capital in the startup sector. The announcement on deep tech fund, while details are awaited, it should be viewed through the DeepSeek lens of what can be done with relatively small amounts of capital when provided to agile and creative teams. We expect the VC ecosystem to bring velocity and momentum into funding these enterprises.

I was especially delighted to hear about the enhancing the “spirit of curiosity and innovation “ with IIT expansions of capacity and centres of excellence for AI education – talent availability is a necessary part of continuing our growth”.

Mr. Sridhar Parthasarathy, Co-Founder & General Partner at Bluehill.VC Says, The government’s announcement of a another Fund of Funds (FoF) worth ₹10,000 crore in the budget is strong commitment to cultivate an entrepreneurial ecosystem and an acknowledgement of Alternative Investment Funds (AIFs) in channeling these resources effectively.

While equity funding through AIFs is essential, there is an urgent need for debt financing for startups. The introduction of a credit guarantee will help startups achieve a balanced mix of equity and debt funding, making their growth more sustainable.

Additionally, the plan for a new Deep Tech Fund of Funds is a crucial step towards advancing deep tech innovation in India. This signals a clear intent from the govt to position India strongly in the global AI race, which is much needed boost for deep tech startups specially in AI and space tech”.

Mr. Ankur Mittal, CO-Founder, Inflection Point Ventures

Mr. Ankur Mittal, CO-Founder, Inflection Point Ventures says, “Our ask was a better credit platform and framework for startups and to that extent this is a welcome step. This will allow them to grow and build sustainable businesses and not be dependent on just equity infusion to grow. Their capacity to attract follow-on growth capital will be further strengthened by the additional cash, which will also help them make important investments in operations, personnel, and technology. This action boosts job creation, accelerates startup growth, and creates long-term value in the ecosystem by resolving financial limitations”.

Mr. Dinesh Arjun, CEO Cofounder, Raptee.HV

Mr. Dinesh Arjun, CEO Cofounder, Raptee.HV says “Innovation and technology are the cornerstones of every developed nation, and India’s vision for Viksit Bharat rightly prioritizes these pillars. The Finance Minister’s focus on nurturing and investing in innovation is a commendable step toward accelerating new technologies that will shape our future. The allocation of a Deep Tech Fund will further strengthen India’s industrial ecosystem, fostering a globally competitive, tech-driven economy.

A crucial boost to the EV industry comes with the exemption of Li-Ion batteries and other capital goods, which will significantly reduce battery costs and encourage further investment in domestic battery manufacturing. Given that batteries make up 30-40% of an EV’s cost, this move will make EVs more affordable and accessible to consumers, driving mass adoption across two-wheelers, three-wheelers, and four-wheelers alike. By addressing a fundamental cost barrier, this initiative lays a strong foundation for the future of electric mobility in India. We are confident that these strategic measures will have a lasting positive impact on the EV ecosystem in the months to come.”

Mr. Pankit Desai, Co-founder & CEO, Sequretek

Mr. Pankit Desai, Co-founder & CEO, Sequretek says “With the unveiling of the Union Budget 2025, significant advancements in artificial intelligence come into focus, particularly with the creation of National Centers of Excellence (COEs) in AI. This shift signals a groundbreaking transition from AI being a mere boardroom discussion to becoming a central budgetary focus, complete with serious financial commitments. By earmarking funds specifically for deep tech, the government is actively fostering an environment ripe for innovation, acknowledging the high-risk nature of such investments, and putting resources right where they’re most needed. This policy shift could elevate India’s skilled tech workforce, facilitated by increased funding and programs such as “Train the Trainers,” ensuring capable instructors for burgeoning student populations. The expansion of broadband access further ensures that students even in remote areas can emerge technologically proficient, broadening the talent pool to Tier 3 and 4 cities and rural India.

The FM also announced a 5-year extension of the startup incorporation period, allowing more startups, including those established before January 2013, to enjoy benefits like extended tax concessions—a vital move as startups often require longer timelines to become profitable. The decriminalization of TDS and TCS further underscores the government’s focus on supporting MSMEs. In addition, easing the tax deduction and collection structures simplifies financial management for startups, alleviating cash flow concerns and enabling companies to operate more smoothly.”

Mr.Asheesh Gupta, Founder & CEO, Samarth Eldercare

“The Finance Minister set her priorities clearly at the outset, focusing on the poor, youth, farmers, and women. While the elderly were not specifically mentioned, the proposals aim more at simplification than direct financial relief. That said, there is still reason for optimism. Strengthening healthcare infrastructure, setting up cancer daycare centers, reducing duties on life-saving medicines, and extending benefits to gig workers—potentially including eldercare professionals—could bring much-needed support to senior citizens in an indirect but meaningful way.”

Mr. Sanjay Choudhari, Chairman, SBL Energy

“The government’s renewed focus on manufacturing and energy security marks a transformative shift for India’s industrial landscape. The National Manufacturing Mission under the Make in India initiative is a timely and much-needed move that will strengthen small, medium, and large industries. We see this as a crucial step toward building a robust supply chain for mining and infrastructure, enhancing domestic production of critical materials, and reducing import dependency.

The Nuclear Energy Mission, with its ambitious target of 100 GW capacity by 2047, is a bold move toward energy transition. The ₹20,000 crore investment in small modular reactor R&D and incentives for capacity augmentation will create opportunities for energy-intensive industries, including mining and explosives. Reliable and scalable power sources are fundamental to driving industrial growth, and this initiative is a step in the right direction. At SBL Energy, we are optimistic about these developments and look forward to leveraging these opportunities to contribute to India’s self-reliance in mining, energy, and industrial explosives.”

Mr. Anirudh A. Damani, Managing Partner, Artha Venture Fund

This budget is nothing short of transformative—it covers a wide spectrum of critical areas, from tax simplification to deep-tech investments, infrastructure, and energy expansion. The increase in income tax exemption to ₹12.75 lakh is a bold, economy-igniting move that puts more money in the hands of salaried individuals, fueling consumption and economic momentum. The renewal of the ₹10,000 crore Fund of Funds and the focus on deep-tech funding will provide much-needed capital to early-stage ventures and India’s next wave of innovation. The increased allocation for nuclear and power sectors, alongside massive infrastructure CAPEX, signals that this budget isn’t just about the next year—it is about building a globally competitive India by 2047. This is the first full-fledged budget of the Modi government’s third term, and it has delivered on the needs of the economy, startups, and investors alike. The next big moment to watch will be the income tax bill set to be tabled next week, which could further revolutionize India’s tax system. Overall, this budget sets the foundation for sustained, long-term economic growth, and we at Artha Venture Fund are supremely excited about the future it promises.”

Mr. Mukul Goyal, Co-Founder of Stratefix Consulting

“The Union Budget 2025 has rightly emphasized the pivotal role of MSMEs in India’s economic landscape. With over one crore registered MSMEs contributing approximately 36% to our manufacturing output and 45% to exports, their significance cannot be overstated.

The government’s decision to enhance the investment and turnover thresholds for MSME classification is a commendable move. This adjustment will enable more enterprises to avail MSME benefits, fostering growth and competitiveness. Additionally, the increase in credit guarantee cover for micro-enterprises from ₹5 crore to ₹10 crore is a significant step. This initiative is expected to inject an additional ₹1.5 lakh crore in credit over the next five years, empowering small businesses to invest in innovation and expansion.

However, while these measures are promising, it is crucial to address the persistent challenges that MSMEs face. Access to timely and affordable credit remains a hurdle for many small businesses. Streamlining the loan disbursement process and reducing bureaucratic red tape are essential to ensure that the intended benefits reach the grassroots level.

Furthermore, the emphasis on digitization and technology adoption is a welcome move. Encouraging MSMEs to integrate digital tools can enhance operational efficiency and open new market avenues. Providing incentives for technology adoption and digital literacy programs will be instrumental in this transition.

In conclusion, the Union Budget 2025 lays a solid foundation for strengthening the MSME sector. By addressing the existing challenges and building on the proposed initiatives, we can look forward to a more robust and resilient MSME ecosystem, driving India’s journey towards becoming a global manufacturing hub.”