Industry bodies applaud key provisions in Union Budget 2025

New Delhi:  The Union Budget 2025 has garnered strong reactions from industry leaders, with many praising its focus on economic growth, fiscal prudence, and tax relief measures.

Various sectors expressed their approval of the provisions aimed at boosting growth, encouraging investment, and providing relief to the middle class.

Sanjay Kumar, Founder & CEO of TTP World, highlighted the dual focus of the budget: Economic growth and taxes.

“I think the budget can be divided into two parts, one focussing on the country’s economic growth and the other addressing taxes. Let me focus on the economic growth aspect, which includes areas like agriculture, emphasising investment, MSMEs, and FDI,” said Kumar.

Ajay Singh, CMD of Spice Group and past president of ASSOCHAM, welcomed several key measures. “I think it was wonderful that the budget addressed many of the key concerns, especially regarding the fiscal deficit. Keeping the fiscal deficit at 4.4 per cent is a big positive. Increasing FDI in insurance to 100 per cent is another significant move, as we’ve been advocating for more Foreign Direct Investment in the country.

“The tax cut for the middle class, with exemptions up to Rs 12 lakh a year is, in my opinion, the most impactful announcement in this budget. We heartily welcome that.”

PHDCCI Chair, Mukul Bagla, spoke about the benefits of the tax exemptions for middle-class families. “If a family has two taxpayers, and both receive the Rs 2 lakh tax exemption, then the family will have more money for their needs, spending, and consumption. In that case, whatever they spend on their children, they will have more money to do so, leading to better spending. And I am sure this will contribute to the growth of the country,” Bagla said.

Bhupesh Gupta, Co-Chairman of ASSOCHAM, described the budget as better than expected. “This is a very good budget. The budget is much better than what we expected. If we talk about the tax slabs and salaries, we expected it to be increased from Rs 7.5 lakh to Rs 10 lakh,” said Gupta.

Sanjay Bajpai, Co-Chairman of the National Council on Logistics and Warehousing, ASSOCHAM, praised the budget’s focus on logistics and shipping.

“The budget includes several key elements. First, as already discussed, the economy needs a boost in demand, and the budget has effectively addressed this issue. There are numerous new developments in the shipping sector, which is an exciting area that will help develop the logistics sector. Therefore, I believe this is definitely a pro-growth budget,” he said.

One of the most significant announcements in the Union Budget 2025 is the tax relief for the middle class. Finance Minister Nirmala Sitharaman announced that there will be no income tax payable for incomes up to Rs 12 lakh a year, and Rs 12.75 lakh for salaried taxpayers, including the standard deduction.

In the new tax regime, the revised tax rate structure is Rs 0-4 lakh (zero tax), Rs 4-8 lakh (5 per cent), Rs 8-12 lakh (10 per cent), Rs 12-16 lakh (15 per cent), Rs 16-20 lakh (20 per cent), Rs 20-24 lakh (25 per cent), and above Rs 24 lakh (30 per cent).

FM Sitharaman further announced a rationalisation of tax deduction at source (TDS) rates and a doubling of the tax deduction limit for senior citizens to Rs 1 lakh. Additionally, the time limit for filing updated returns has been extended from two years to four years.

These key proposals, alongside a focus on fiscal discipline, are expected to fuel continued economic growth.

–IANS