Arijeet Talapatra, CEO itel and TECNO
The Union Budget 2025 signals a strategic move to position India as a global hub for mobile manufacturing. The proposed tariff reductions on essential assembly components—such as PCBAs, camera modules, USB cables, and display modules—are a welcome measure that will improve cost efficiencies, accelerate localization, and strengthen the Make in India initiative. This move strengthens India’s position in the global supply chain, especially amidst shifting trade dynamics amongst major economies.
The decision to raise the income tax exemption limit upto ₹12 lakh will substantially increase disposable income, providing a significant financial boost to taxpayers, leading to increased consumer spending on electronics. As purchasing power of consumers rises, the demand for smartphones and other digital devices is expected to rise, further fueling the growth of India’s electronics industry. The establishment of five National Centres of Excellence for Skills and global skilling cooperation would equip young people for global opportunities. The Make in India campaign and streamlined trade policies are consistent with the government’s goals of driving growth, promoting investment, and encouraging women workforce participation.
Amar Nagaram, Co-Founder & CEO, VIRGIO
“The Union Budget’s focus on fostering innovation, empowering MSMEs, and strengthening India’s digital economy is a step in the right direction. The ₹500 crore allocation to deep-tech and AI innovation will be instrumental in driving AI-led advancements and data-driven solutions, enabling businesses to scale efficiently. The ₹20,000 crore investment in innovation, along with the establishment of a Deep Tech Fund, will play a pivotal role in accelerating the adoption of next-generation production technologies. Furthermore, the five-year Mission for Cotton Productivity will strengthen a powerful, proplanet, and premium raw material supply chain. Incentives for sustainable manufacturing and circular economy initiatives validate the growing shift towards responsible fashion. The significant enhancement of credit availability with guarantee cover for start-ups will provide crucial support for emerging businesses, while also generating employment opportunities. A progressive policy framework that supports startups will accelerate India’s journey to becoming a global hub for innovation and conscious consumption.
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”.
Sridhar Parthasarathy, Co-Founder & General Partner at Bluehill.VC
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”.
Ankur Mittal, CO-Founder, Inflection Point Ventures
“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”.
Dinesh Arjun, CEO Cofounder, Raptee.HV
“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.”
Pankit Desai, Co-founder & CEO, Sequretek
“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.”Udit Jain, Director, One GroupThe Union Budget 2025-26 presents a visionary roadmap for India’s growth, with a strong emphasis on infrastructure development, urban reforms, and housing support. The Finance Minister has outlined bold proposals aimed at accelerating economic progress through Public-Private Partnerships (PPP), interest-free loans to states for capital expenditure, and incentives for governance and urban planning reforms. These measures reaffirm the government’s commitment to strengthening municipal services, optimizing urban land use, and enhancing nationwide infrastructure.
Additionally, the government’s decision to revise tax slabs and reduce tax rates is a welcome move that will lead to significant savings for taxpayers, particularly the middle-income group. At a time when rising living costs, inflation, and increasing household expenses are putting financial pressure on individuals, this relief will offer much-needed financial breathing space.
Beyond individual benefits, this measure is expected to have a broader economic impact by boosting disposable income and enhancing purchasing power. With more money in hand, households will be in a stronger financial position to service home loans and invest in real estate, driving higher demand for home buying. A stronger housing market will not only benefit homebuyers but also stimulate growth across allied industries such as construction, home décor, and banking, further fueling economic momentum.
Manveen Ssharma, Founder, Pinq Polka
As a woman entrepreneur, today’s announcement is incredibly meaningful—not just for me, but for the entire women entrepreneurship community. The ₹10,000 crore ‘Women Entrepreneurship Fund’ is a game-changer for women-led businesses like Pinq Polka, offering not just much-needed capital but also mentorship and guidance, which are often hard to come by.
The ₹100 million credit guarantee for SMEs is another great supportive step, making financing more accessible for women entrepreneurs who have historically faced challenges in securing financial support for business growth.
On a personal level, the extension of the Mahila Samman Savings Scheme is a huge relief. It’s a powerful initiative that enables women to save and plan for a secure future, and I’m thrilled that more women will now have access to it.
The government’s commitment to supporting women-led businesses and fostering financial independence is exactly what’s needed to drive true empowerment. I’m excited to see how these initiatives will help women entrepreneurs thrive and scale their businesses.
Siddarth Pai, Founding Partner, 3one4 Capital and Co-chair
Budget 2025 has answered several key asks of the Indian AIF Industry with respect to “parity and clarity”, wherein the industry sought parity with foreign investors and clarity on its operations. Classifying securities held by an Indian AIF as a “Captial asset” under Section 2(14) will ensure that all gains from their sale will be taxed as capital gains, not as “Business Income”. This was offered to FPIs in 2014 to reduce litigation. Indian AIFs now have the same clarity.
Budget 2025 also removed the TCS provision which could have been applied to the sale of securities. This provision was ambiguously worded to bring AIFs under its ambit and led to friction and uncertainty around exits. Its removal will increase the pace of exits and give tax clarity.
The AIF Industry welcomes the move to increase funding to Startups through another Fund of Funds of Rs 10,000 Cr. The previous one galvanized private capital of over Rs 90,000Cr and the new emphasis on women entrepreneurs shows the government’s commitment to increasing their participation in the economy.
The Deeptech Fund of Funds will provide the capital needed for deeptech companies to scale in India. IF this is structured to provide long term capital support, this will be a huge boost to R&D in India, development of fundamental research and eventual commercialization.The government’s pledge to provide tax certainty and reduce litigation has given a major boost to the attractiveness of Indian AIFs and will help increase capital formation in India and for Indian entrepreneurs.
Gopal Jain, Managing Partner & CO-Founder, Gaja Capital & Co-Chair
“The amendment to the definition of ‘capital asset’ under Section 2(14) is a landmark reform that brings much-needed tax clarity for investment funds, including Alternative Investment Funds (AIFs). By ensuring that securities held by these funds are classified as capital assets, the government has eliminated ambiguity around their tax treatment, reinforcing investor confidence and reducing potential litigation.
Furthermore, the announcement of a 10,000 Cr FoF with expanded scope and provision for a Deeptech FoF is a significant step toward strengthening domestic pools of capital for cutting-edge innovation. This has been a long-standing industry demand, and we are encouraged to see the government’s commitment to catalyzing next-generation enterprises and startups in critical sectors.
This move aligns India’s regulatory framework with global best practices and provides a stable, predictable tax environment—critical for attracting long-term institutional capital. The uniform treatment of capital gains taxation will enhance the competitiveness of India’s alternate capital industry, encouraging more investments into high-growth sectors.We welcome these reforms, as they strengthen the ease of doing business for fund managers and investors alike, creating a more robust and efficient capital market ecosystem.”
Rajat Tandon, President, IVCA
“At IVCA, we are grateful to our Finance Minister, respected Secretary, and policymakers for their continued efforts in strengthening India’s investment landscape. The Finance Minister’s decision to explicitly define securities held by investment funds as capital assets is a landmark step for the Indian alternate capital industry. This long-awaited reform brings much-needed tax certainty, minimizing disputes and aligning India’s regulatory framework with global best practices. The clarity in tax treatment will provide a strong boost to investor confidence, paving the way for increased domestic and international capital flows into high-growth sectors.
The government’s continued focus on fostering innovation—through an expanded Fund of Funds and the proposed Deep Tech Fund—is equally commendable. These initiatives will ensure that emerging businesses, particularly in frontier technologies, have access to critical growth capital, further cementing India’s position as a global startup hub.
Additionally, the announcement of the ₹25,000 crore Maritime Development Fund is a significant step in enhancing India’s logistics and trade infrastructure. With up to 49% government participation and the remainder mobilized from the ports and private sector, this fund will boost competition, improve efficiency, and unlock new investment opportunities in the maritime sector.
At IVCA, we remain committed to working alongside policymakers to create an enabling regulatory environment that attracts long-term capital, fuels entrepreneurship, and accelerates India’s economic growth.”
Ashley Menezes, Chairperson IVCA and Partner & COO, ChrysCapital
“The Union Budget 2025-26 reflects a strong commitment to strengthening India’s alternate capital ecosystem with much-needed clarity on taxation, continued support for startups, and expansion of fund structures that drive economic growth. The amendment to the definition of ‘capital asset’ under Section 2(14) is a significant win for the industry, providing much-needed tax certainty to investment funds and aligning them with global best practices.
The government’s decision to set up a new Fund of Funds with a ₹10,000 crore contribution, along with the proposal to explore a DeepTech Fund, is a timely boost for India’s thriving startup ecosystem. These steps, coupled with the extension of incorporation benefits for startups and targeted incentives for IFSC entities, will enhance capital flow, spur innovation, and attract long-term investments. The extension of tax benefits for sovereign and pension funds investing in infrastructure till March 2030 also ensures sustained funding for India’s long-term development. We commend the Finance Minister for these progressive measures that will catalyze capital formation, deepen private investment, and reinforce India’s position as a global investment hub.”Ramadass Selvaraj, Chief Operating Officer , Pathfinder GlobalThe Union Budget 2025 brings growth opportunities to the retail sector. The exemption of annual income up to Rs 12 lakh from income tax, along with the rejigged tax slabs, will significantly boost disposable income for consumers. This is set to increase consumer spending, especially in retail and e-commerce. We at Pathfinder are excited by the potential of these measures, as they lay the foundation for an even more vibrant, digitally-driven retail landscape. The future of Indian retail is brighter than ever.Sumit Bhatia, co-founder, Aksum Trademark Pvt. Ltd.“The Government’s decision to increase investment and turnover limits for MSMEs by 2.5x and 2x, respectively, is a welcome move that will enable businesses to scale, innovate, and attract investments. Additionally, the enhanced credit guarantee cover under CGTMSE will provide easier access to formal credit, helping MSMEs grow and modernize.At Aksum , we believe these reforms will strengthen India’s MSME sector, boost job creation, and drive economic growth. We look forward to leveraging these benefits to expand and innovate.”