Union Budget 2025: Finance Minister Nirmala Sitharaman presented her eighth consecutive Union Budget on Saturday delivering some relief to the middle-class by giving rebate in tax on the income of up to ₹12 lakh. This budget has also brought much more for the people, let’s see how industry leaders have reacted to the announcements:
“The Budget 2025-26 marks a pivotal moment for our economy—a decisive step towards revitalizing demand and strengthening the backbone of our nation, the middle class. The tax exemption on income up to ₹12 lakh is a welcome relief that will not only stimulate spending but also bolster confidence across various sectors, with real estate poised to be a prime beneficiary,” said Vineet Nanda, Director Sales & Marketing, Krisumi Corporation.
The launch of SWAMIH Fund 2, with a dedicated corpus of ₹15,000 crore to complete one lakh stalled housing projects, stands out as a landmark initiative. This measure will accelerate the completion of essential housing projects and restore buyer confidence, laying a strong foundation for a more robust residential market, he further added.
“Furthermore, the provision allowing the ownership of two self-occupied properties without additional tax conditions is a forward-looking move that will encourage investment in second homes, enhancing the diversity and resilience of the housing sector.”
The budget’s strong focus on urban development—evident in the establishment of a Rs 1 lakh crore fund for developing cities as Growth Hubs—signals a clear commitment to transforming our urban centers into engines of economic progress. This initiative is set to drive sustainable urban redevelopment, modernize infrastructure, and unlock new growth opportunities, he said.
Pradeep Aggarwal, Chairman, Signature Global (India), said, “The Union Budget 2025 is a game-changer, reinforcing India’s commitment to inclusive and sustainable urban growth. The SWAMIH Fund 2 with ₹15,000 crore will accelerate the completion of stalled housing projects, bringing relief to over one lakh homebuyers. The ₹1 lakh crore Urban Challenge Fund will play a pivotal role in transforming cities into vibrant growth hubs, ensuring balanced regional development.”
The masterstroke of direct tax reform—exempting income up to ₹12 lakh—will significantly boost disposable income, increasing affordability for homebuyers and driving real estate demand. Additionally, the government’s thrust on PPP-driven infrastructure with a structured three-year project pipeline will accelerate urban expansion, unlocking new opportunities for real estate and housing. These progressive reforms align with India’s vision of ‘Sabka Vikas’, fostering a robust ecosystem for homebuyers, developers, and investors alike, Aggarwal said.
“The Union Budget 2025-26 is for three Ms -Manufacturing, Middle Class and MSMEs. Customs duty on capital goods and raw material imports have been rationalised to promote manufacturing, especially on lithium Ion batteries. MSMEs have also been a special focus in this budget,” said Vivek Jalan, Partner Tax Connect Advisory Services LLP.
“The Biggest big bang change of course is the exemption of Income Tax for middle class with income upto ₹12 lakh. Further, as expected income tax TDS/ TCS provisions have been revamped and rationalised. There are 71 Sections which cover TDS/TCS having multiple thresholds and multiple rates. Industry had pitched in for complete revamp of TDS/TCS provisions and this budget has moved in the direction. For example, on same goods purchase there was a TDS u/s 194Q as well as TCS u/s 206C(1H). This created hardship and in this budget TCS has been scrapped to provide much needed relief.”
D. S. Negi, CEO, Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC), said: “The government’s ongoing efforts for comprehensive improvements in healthcare are commendable. The Budget announcement to establish daycare cancer centres in all district hospitals within the next three years is a significant step forward. The addition of 200 centres in 2025-26 itself will make cancer treatment more affordable and accessible, particularly for patients from economically weaker section.”
Further, the announcement to add 75,000 medical seats over the next five years, including 10,000 additional seats in FY26, is a crucial step in strengthening medical infrastructure in the country. This significant increase in medical education opportunities will not only address the growing demand for healthcare professionals but can better serve the needs of the population, especially in underserved areas. This will enhance the current doctor to population ratio of 1:1263 and will allow us to meet the WHO standard of 1:1000 by 2030, he added.
“The reduction of basic customs duty on 36 life-saving drugs to nil including some cancer drugs, and concessional customs duty on six lifesaving medicines to 5% will significantly decrease cost of treatment for patients. The provision of broadband connectivity for primary health care centres will enhance adoption of modern technology and thus benefitting patients widely,” Negi added.
Pavan Choudary, Chairman, Medical Technology Association of India (MTaI), said, “The government’s initiatives, including the establishment of five major skill development centers, would help meet the target of 300,000 healthcare workers India aims to export annually.”
“Also, simplifying visa procedures for medical tourists is a timely priority to cope with the shocks that current geo-politics especially with respect to Bangladesh, has given to our medical tourism market. Overall, this cross-border flow of patients and healers will expand the market and create more proficient healthcare workers.”
Day-care cancer centers were much needed as chemotherapy for Cancer cannot be administered at home because of the potential risks associated with handling potent medications, the need for close monitoring of side effects, and the risk of accidental exposure to other household members, he said, adding that the budget is well-informed and thoughtfully attuned to current needs. We are reading the fine print and hope to see some reductions in customs duties on medical devices which are not import substitutable in the near term.
