The first full Union Budget of the Modi 3.0 government, presented by Finance Minister Nirmala Sitharaman, brought significant tax relief, support for startups and major investments in various sectors. The income tax exemption limit was increased to Rs 12 lakh, offering relief to the middle class and boosting consumption. A Rs 10,000 crore Fund of Funds was introduced to strengthen India’s startup ecosystem, alongside a Rs 500 crore AI Centre of Excellence for Education. 

While industry leaders welcomed the tax cuts and fiscal consolidation, experts expressed concerns over a shrinking tax base. Investors are now closely watching the RBI’s upcoming monetary policy meeting (Feb 5-7), with expectations of a 25 bps rate cut that could further boost economic growth.

Here are post-Budget reactions from prominent industry leaders –

Aditya Birla Group’s Chairman Kumar Mangalam Birla 

The finance minister’s eighth Budget signals a decisive shift towards structural reforms, aligning with India’s trajectory as the world’s fastest-growing economy. With sweeping changes across taxation, energy, urban development, financial services, and regulatory frameworks, it sets the stage for enhanced global competitiveness and long-term growth,” Aditya Birla Group’s Chairman Kumar Mangalam Birla said, adding that, “Infrastructure remains central to the country’s economic expansion.”

“At the heart of this strategy is the National Manufacturing Mission, designed to strengthen India’s industrial competitiveness across enterprises of all sizes. By refining execution roadmaps, at both central and state levels, the initiative enhances productivity, reduces costs, upskills the workforce, supports medium and small enterprises (MSMEs), and drives technological innovation, all while ensuring adherence to global quality benchmarks. The government’s ambition is clear—to establish India as a formidable player in global manufacturing supply chains,” he further said. 

Flipkart CEO Kalyan Krishnamurthy

“The Union Budget for FY26 provides the perfect booster shot for an Aatmanirbhar and Viksit Bharat through inclusive development and strategic investments. The finance minister’s focus on fuelling consumer demand, strengthening micro, small, and medium enterprise (MSME) participation in the digital economy, accelerating the technology ecosystem, and simplifying regulatory frameworks to enhance the ease of doing business is commendable,” Flipkart CEO Kalyan Krishnamurthy said, adding that the MSMEs play a crucial role in strengthening our industrial foundation, with the micro sector representing over 99% of all MSMEs, and more than half of them based in tier-II cities and beyond. The Budget acknowledges the significant contribution of MSMEs, particularly in driving the government’s Make in India initiative.

“India boasts a vibrant start-up ecosystem, and adequate funding is crucial for its continued growth. The Budget addresses this need with a new Fund of Funds, with expanded scope and a fresh contribution of another Rs 10,000 crore from the government. This should spur our budding entrepreneurs to make bolder bets. The Deep Tech Fund of Funds will catalyse the next league of start-ups specialising in advanced technological sectors, including artificial intelligence (AI), robotics, blockchain, and clean energy,” he added. 

Dr Reddy’s Chairman Satish Reddy

“Union Budget 2025-26 takes strong steps towards nation-building through structural reforms such as investment in technology and infrastructure, simplification of tax slabs and duties, and announcements in critical areas such as tax relief for the salaried class, inclusive growth, climate action, agriculture, among others. It has also provided for resilience in the healthcare infrastructure of the country through cancer day centres, medical education, further custom duty exemptions for life-saving drugs, and encouragement to medical tourism and ‘Heal in India’. The continued focus on the investment in private sector-driven research, development and innovation announced last year is welcome, as are measures for digital education, fostering scientific curiosity and innovation among youth, and Centres of Excellence for skilling to support ‘Make for India, Make for the World’ manufacturing. We look forward to studying the detailed proposals,” said Dr Reddy’s Chairman Satish Reddy on Union Budget 2025. 

Biocon’s Founder and executive chairperson Kiran Mazumdar-Shaw

“The budget has the right focus. Also, while the customs duty waiver on imported cancer drugs is a laudable move, a benefit on similar lines in terms of GST (Goods and Services Tax) relief should also be provided to indigenously manufactured cancer drugs….It is a stable and reassuring budget that aims not to upset any apple cart coupled with some very good measures such as customs duty exemption on some cancer and lifesaving drugs,” said Kiran Mazumdar-Shaw, founder and executive chairperson of Biocon, a leading global biopharmaceutical company from India and a symbol of women entrepreneurship. 

However, she believes that while the customs duty exemption on imported cancer drugs is a commendable step, similar relief in the form of GST benefits should also be extended to domestically manufactured cancer drugs.