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Pre-Budget 2025: What Industry Titans Are Hoping For

News: Ahead of Union Budget 2025, industry leaders outline key reforms in taxation, agriculture, infrastructure, and digital economy to drive sustainable growth.

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Manisha Sharma
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Budget 2025

Budget 2025 Photograph: (Budget 2025)

Ahead of the Union Budget 2025 on February 1, industry stalwarts highlight touchstone reforms across sectors that would contribute to sustainable growth. This will be the second full budget of the Modi 3.0 government and Sitharaman’s eighth budget presentation in a row since taking over.

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Union Budget 2025: The initiation of changes in taxation, agriculture, infrastructure, digital economy development, and manufacturing technology advancements is expected in this Union budget. Here’s what experts from different sectors are wishing for:

Rahul Garg, Founder & CEO, Moglix:

"The Union Budget 2025 presents a defining opportunity to establish India as a global manufacturing and economic leader while advancing the vision of a Viksit Bharat. Empowering the startup ecosystem, which drives innovation, employment, and economic growth, must remain a top priority. Measures such as extending incentives, simplifying regulations, and enhancing funding opportunities can unlock growth across sectors like manufacturing, e-commerce, and supply chains.

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For MSMEs and the manufacturing sector, resolving structural challenges, rationalizing tariffs on key raw materials, and investing in logistics and port infrastructure are critical to boosting export potential. Additionally, skill development initiatives focusing on emerging technologies like AI, robotics, and advanced manufacturing can create a future-ready workforce aligned with global demands.

Sectors such as semiconductors, sustainable manufacturing, and automation hold immense potential for startups to contribute to India's $1 trillion economy target by FY30. Dedicated funding pools, tax incentives for investors, and streamlined implementation frameworks are crucial to achieving this vision.

Moreover, simplifying processes for electronics imports while promoting domestic manufacturing is essential for innovation and competitiveness in high-tech industries. We are optimistic that Budget 2025 will drive sustainable growth, foster innovation, and position India as a resilient, globally competitive economy."

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Abhimanyu Singh, Co-founder & Chief Operating Officer &  Dhananjaya Bharadwaj, Founder & Product Head, ParkMate:

At ParkMate, we’re thrilled with the incredible opportunities presented in the Union Budget 2025-26. The announcement of a 1 lakh crore fund for private sector R&D, backed by a 50-year interest-free financing scheme, is a game-changer for us. It empowers our team to dream bigger, work on groundbreaking ideas, and develop innovative solutions that can transform parking and mobility as we know it.

This isn’t just about research-it’s about creating technologies that solve today’s challenges while preparing for a smarter sustainable tomorrow. On top of this, the extension of tax benefits for startups until March 31, 2025, is a significant boost for companies like ours. It reinforces the government’s trust in startups and provides the support we need to stay focused on building advanced parking solutions that genuinely make life easier. These measures fuel our commitment to innovation and inspire us to contribute even more to the nation’s progress.

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Sarvagya Mishra, Founder & Director at Superbot:

"All eyes will be on the Finance Minister as she announced the Union Budget 2025. We believe that this year, we have an incredible opportunity to position India as the global hub for AI innovation and hope that the Union Budget 2025 will give a great boost to AI research, development, and commercialization to drive job creation and economic growth. The government should consider supporting entrepreneurship in the field, by introducing tax rebates and subsidies for AI start-ups in the domain of healthcare, education, and governance – promoting AI innovation in solving real world problems.

The budget should look into addressing hyper-local challenges, improving agricultural yield or making education more accessible in India. Furthermore, provisions should also be in place for boosting the AI infrastructure, high-performance computing and skill building in the domain. The government should also consider giving tax rebates to companies investing in skill-based hiring or upskilling initiatives. The focus should also be in promoting start-up-specific investment funds or supporting tokenization models to enhance funding access to early-stage and growth-stage start-ups. The government may also have the critical task of ensuring data privacy, while allowing start-ups to innovate in creating global models of excellence. Government initiatives in promoting global collaboration will help Indian start-ups gain recognition and prominence at a global stage"

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Sandeep Aggarwal, Founder & CEO of Droom:

"As we move closer to the unveiling of Union Budget 2025, at Droom, we would appreciate policies that will give a push to drive India's digital transformation, especially in the automotive sector. The previous budget announcements have been forward-looking in giving a boost to emerging technologies. And we expect this year's budget to focus on boosting indigenous capabilities in AI and data science. These are going to be crucial frontiers in making vehicle buying and selling more transparent, affordable, and efficient. 
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Furthermore, we'd look forward to measures that will bolster the used vehicle market in the country, such as tax rebates from eco-friendly vehicles, simplified GST structure for automatic services, etc. These measures will be critical in empowering platforms like Droom to offer more convenience and invoke more trust amongst our consumers while contributing in meaningful ways to the nation's economic growth and development."

Sushanto Mitra, CEO, Lead Angels:

"Startups are the driving force of modern economies, contributing significantly to employment and innovation. To further accelerate this growth, the government should consider allowing investors to write off startup investments over five years, as practiced in developed countries. This could also extend to employees exercising stock options and investments in SEBI-approved venture funds.

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Additionally, easing compliance requirements for DIPP-registered startups during their initial years would enable founders to focus on building their businesses rather than navigating complex regulations. Incorporating entrepreneurship into school and undergraduate curriculums can nurture an entrepreneurial spirit in young minds, fostering a culture of innovation from an early age.

In sectors like defence and healthcare, where innovation is critical, targeted tax deferments can help startups build capabilities essential for national security and addressing societal challenges like an ageing population. These measures will create a robust startup ecosystem and position India as a global leader in entrepreneurship". 

Dinkar Agrawal, Founder, CTO & COO, Oben Electric:

The Union Budget 2025 is a critical opportunity to address key challenges in India’s EV transition. To achieve the ambitious target of 30% EV penetration by 2030, it’s crucial to tackle both manufacturing and consumer-centric challenges.
 
Simplifying the GST structure with a uniform 5% tax across EVs, components, and charging infrastructure is essential to reducing costs and fostering growth. Additionally, resolving the inverted GST structure on raw materials will ease working capital pressures and encourage sustainable manufacturing. Performance-linked incentives for battery innovation and indigenous component manufacturing can further strengthen India’s Make-in-India push, positioning the country as a global leader in EV technology. On the consumer front, initiatives like reduced interest rates on EV loans and targeted subsidies can make electric vehicles more accessible, bridging the affordability gap.”

Girish Hirde, Global Delivery Head at InfoVision:

“As we approach Union Budget 2025, InfoVision anticipates a forward-looking agenda that addresses the transformative potential of AI and other cutting-edge technologies. We expect robust provisions to maintain India's global competitiveness in the rapidly evolving tech landscape. Key areas we hope to see addressed include investments in AI infrastructure, establishment of clear ethical guidelines for AI development, and tax incentives for companies investing in AI and emerging tech training programs.
 
Furthermore, we look forward to support for telecom advancements, particularly in 5G and 6G infrastructure, which are crucial for enabling AI and IoT applications at scale. We also anticipate increased allocation for cybersecurity to strengthen India's digital defenses, enhanced funding for AI and deep-tech startups, and incentives for AI integration across sectors like healthcare, agriculture, and manufacturing. By focusing on these areas, Budget 2025 can lay the foundation for India to lead in the AI era, creating sustainable job opportunities and driving optimal growth in the digital”

Kunal Arya, Co Founder & Managing Director at ZELIO E Mobility Ltd:

As India’s electric mobility sector gears up for an era of unprecedented growth, the Union Budget 2025-26 will play a critical role in shaping its trajectory. To ensure a sustainable future, we at ZELIO E Mobility believe that the government must introduce long-term subsidies akin to the FAME scheme, which will not only support the industry’s expansion but also encourage widespread consumer adoption of electric vehicles. Consistent policy backing will give manufacturers the confidence to invest in innovative solutions and scale production. We also urge the government to provide subsidies for the establishment of EV manufacturing plants.
Facilitating this capital-intensive infrastructure will enable India to emerge as a global leader in EV production, stimulating local economies and fostering technological advancements. Simplifying access to financial services from banking institutions is another vital need of the industry. More accessible lending schemes and flexible credit options will allow EV manufacturers to expand their operations and bring high-quality products to market at a faster pace. Notably, we request a reduction in GST on spare parts from the current 28% to a more realistic range of 5-12%. This adjustment will substantially reduce production costs, allowing manufacturers to pass on the benefits to consumers, thereby further accelerating the adoption of electric vehicles.
With the Union Budget 2025 around the corner, industry leaders from various sectors welcome measures that can create transformative reforms for economic resilience and sustainable growth. For India, the expectations range from taxation relief to agricultural support, from infrastructure expansion to digital innovation and all will strengthen the economic framework of India. In the present scenario, with appropriate policies, this budget can propel development, increase employment, and improve India's global competitiveness. Now, all eyes are on Finance Minister Nirmala Sitharaman as she lays out the roadmap for India's financial future on February 1.