New Delhi: The Modi 3.0 government’s first full Budget provides a comprehensive blueprint to boost economic growth and create jobs in the world’s fifth-largest economy with a heavy dose of “bold” reforms to drive consumption and stimulate investment, India Inc said Saturday.
Industry bodies and corporate leaders said the Budget proposals, especially the slashing of personal income tax rates, will re-energise the economy by lifting the sentiments of the middle class and nudging the private sector to advance its investment plans, amid uncertainty over the global economic outlook and growing concerns due to potential new tariff barriers.
“This is the biggest section of the middle class. It has also significantly reduced the tax burden for incomes up to Rs 24 lakh. We have made a decisive move to a world-class tax system which will be simple, transparent and friendly to taxpayers,” he added.
“The Union Budget 2025-26 provides a strong and convincing template for boosting growth and generating jobs, the twin imperatives for our economy today, with targeted interventions towards facilitating inclusive development,” CII President Sanjiv Puri said.
The policy choices made to facilitate powerful engines such as agriculture, MSME, investment and exports by way of reforms in six domains, in collaboration with states, is welcome and has been CII’s long-standing advocacy, Puri said.
FICCI President Harsha Vardhan Agarwal described it as a comprehensive, inclusive and forward-looking budget that encompasses a heavy dose of reforms, fiscal stimulus and a clear focus on the farm sector, MSMEs, youth and women.
“The Budget proposals will re-energise the economy by lifting the sentiments of the middle class and nudging the private sector to advance its investment plans as demand improves across sectors,” he added.
Vedanta Ltd Chairman Anil Agarwal observed that the Budget has hit the perfect note, providing great relief to the middle class by making incomes up to Rs 12 lakh per annum completely tax-free.
Mercedes-Benz India Managing Director & CEO Santosh Iyer said the Budget “will send a strong positive signal to the industry, reinforcing confidence in the ‘India Growth Story’, paving the way for sustained investment and future expansion”.
Mahindra Group Group CEO & MD Anish Shah said, “We commend the Union Budget for its continued support of robust consumption growth through changes in the tax structure, effectively placing more disposable income in the hands of the Indian consumer. This will encourage the private sector capex to move in a positive direction”.
Describing it as a “bold” Budget to boost consumption, particularly from the vibrant middle-class families, ASSOCHAM said Finance Minister Nirmala Sitharaman has lived up to wider expectations by giving significant relief to individual taxpayers, maintaining the fiscal deficit of 4.4 per cent of GDP.
ASSOCHAM President Sanjay Nayar said, “The finance minister has placed her confidence in the middle class for leading the consumption-led growth. At the same time, there is a clear focus on unleashing the potential of the MSMEs, startups and exports”.
JSW Group Chairman and Managing Director Sajjan Jindal said this Budget provides more money in the hands of the middle class that will help boost consumption.
“A change in tax slabs is a welcome step. The government has maintained its thrust on capex though the spend of Rs 11.2 lakh crore is lower than a spending of around Rs 13 lakh crore that I was hoping for, based on the past trend. But still, capex spend is at a robust level and will give a boost to the core sectors,” he added.
#Budget2025 provides more money in the hands of the middle class which will help boost consumption. A change in tax slabs is a welcome step. @FinMinIndia @nsitharaman @PMOIndia
— Sajjan Jindal (@sajjanjindal) February 1, 2025
Wipro Ltd CFO Aparna Iyer said the Budget prioritises economic progress by placing a strong emphasis on tax reforms, fostering innovation, and skills development, without losing sight of the fiscal deficit target.
