Industry quotes on Union Budget 2025-26
Akash Passey, President, ZF Group in India
“The 2025-26 Union Budget, presented today, sets the stage for an inclusive growth trajectory, paving the way for a robust and fast developing India. It strikes the right balance between increasing consumption and increasing competitiveness.
For me most importantly, the budget focuses on upping the index of ‘Ease of Doing Business’, with regulatory reforms, good governance and incentivization of investments. By prioritizing the ‘Ease of doing Business’, technology access, and MSME growth, this initiative will drive industrial competitiveness across sectors, including the auto components industry.
The National Manufacturing Mission is a critical step towards advancement of the ‘Make in India’ vision. The strengthening of domestic manufacturing, and fostering a future-ready, upskilled workforce all contribute significantly towards this goal. As a global leader in mobility technology, ZF Group in India is pleased to see that our commitment to delivering advanced safety, electrification, and efficiency solutions for passenger cars and commercial vehicles is closely aligned with this mission.
The Government’s focus on Clean Tech manufacturing is particularly decisive for the nation’s transition towards sustainable mobility. Strengthening domestic capabilities in EV batteries, motors, controllers, wind turbines, and high-voltage transmission equipment will enhance local value addition and build a robust supply chain for sustainable energy and next-generation vehicles. At ZF Group in India, we remain committed to partnering with industry stakeholders to continue to drive innovation, scale up localization, and contribute to India’s clean future mobility.” -Akash Passey, President, ZF Group in India
Vinod Aggarwal, MD & CEO, VECV
“We congratulate the government on presenting a forward-looking and growth-oriented Union Budget 2025–26. The budget reaffirms the government’s strong commitment to strengthening India’s manufacturing sector and accelerating the transition to clean and sustainable mobility while bolstering India’s economic resilience.
The introduction of the National Manufacturing Mission and the emphasis on Clean Tech Manufacturing, including National Critical Minerals Mission, particularly for EV batteries, motors, controllers, and high-voltage transmission equipment, will provide a significant boost to ‘Make in India’ efforts. The rationalization of custom duties on key raw materials and the reduction of inverted duty structures will also enhance cost-effectiveness in domestic manufacturing. The duty exemption on capital goods for EV battery manufacturing is a welcome step toward accelerating India’s electric mobility transition.
Furthermore, adjustments in GST rates, incentives for electric vehicle adoption and import duties on components will reshape the industry’s landscape. Increased allocations for infrastructure development, particularly in roads and transportation, will directly fuel demand for commercial vehicles. Additionally, budgetary provisions forworking capital support, technology upgradation funds, and easier credit accesswill play a crucial role in strengthening the MSME ecosystem, ensuring its long-term growth and sustainability.
At VECV, we remain committed to advancing sustainable mobility solutions and contributing to India’s vision of a self-reliant, cleaner, and more efficient transportation ecosystem. The budget outlines a plan for promoting sustainable transportation through integrated infrastructure development initiative. Overall, the Union Budget 2025 reflects a comprehensive approach to stimulate inclusive economic growth through targeted investments in critical sectors that are essential for India’s development trajectory.” – Vinod Aggarwal, MD & CEO, VECV
Jayadev Galla, Chairman and Managing Director, Amara Raja Energy & Mobility Limited (ARE&M)
The government’s emphasis on clean-tech manufacturing—including solar PV cells, electric vehicle (EV) batteries, and wind turbines—underscores its unwavering commitment to the ‘Make in India’ vision. While the National Manufacturing Mission represents a crucial step in strengthening domestic manufacturing capabilities, targeted incentives for lithium-ion battery production, along with R&D support for emerging sectors in the energy transition—such as electronics and EV components for solar energy—will help India accelerate its efforts toward realizing the ‘Make in India’ initiative.
Investment in skill development and education is key to equipping India’s youth with the essential capabilities to thrive in an increasingly technology-driven world. The government’s focus on healthcare, particularly initiatives aimed at improving nutritional support and expanding medical education, will play a vital role in enhancing the nation’s overall well-being. Additionally, the establishment of daycare cancer centers and the provision of social security for gig workers highlight the government’s dedication to ensuring that all citizens have access to quality healthcare and robust social protection.
While the budget aligns with the Economic Survey and industry representations, covering several macro-level announcements—such as the new income tax structure, easing of TDS and TCS processes, the Nuclear Energy Mission targeting 100 GW by 2047, and the proposed INR 1.5 lakh crore allocation for 50-year interest-free loans to states for capital expenditure and incentives for reforms—there remains a lack of clarity regarding the new labor codes and the one lakh crore corpus announced in the previous budget to support financing research in technology.
Overall, it was a well-balanced budget aimed at accelerating growth while supporting the middle class and vulnerable sections of society. – Jayadev Galla, Chairman and Managing Director, Amara Raja Energy & Mobility Limited (ARE&M)
Chirag Shah, Fundraising & Strategy at BlackSoil
The Rs 10,000 crore boost to the Fund of Funds Scheme (FFS) in the Union Budget 2025 is set to drive innovation across sectors like fintech, health tech, and clean energy, providing crucial support for early-stage startups that face difficulties securing private investments. By routing funds through SEBI-registered Alternative Investment Funds (AIFs), the government leverages the expertise of professional fund managers, minimising the risk of inefficient capital allocation and reaffirming its confidence in startups as engines of economic growth and job creation. The scheme’s long-term success will hinge on sectoral priorities, regulatory reforms, and infrastructure, shaping India’s position in the global startup arena. – Chirag Shah, Fundraising & Strategy at BlackSoil
Rohan Dani, Investment Professional, BlackSoil
The National Manufacturing Mission for clean tech manufacturing targets a 38% increase in domestic capacity for EV batteries, solar panels, and other critical components. This initiative will significantly reduce import dependence, bolster sustainable development, and position India for resilient, self-reliant, globally competitive progress.
Dinesh Arjun, Co-founder and CEO, 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.”
Jeenendra Bhandari, Chairman of JITO Incubation and Innovation Foundation (JIIF)
With China aggressively expanding its AI capabilities and the U.S. maintaining its dominance, India cannot afford to lag behind. Deep tech is no longer an option; it is the need of the hour. The government’s commitment—allocating ₹20,000 crore for private-sector-driven R&D and proposing a Deep Tech Fund—signals a crucial shift toward fostering homegrown innovation. With alternative investment funds already receiving commitments of over ₹91,000 crore and an additional ₹10,000 crore Fund of Funds on the way, we have a unique opportunity to build world-class startups in AI, quantum computing, and advanced manufacturing.
Niranjan Nayak, Managing Director, Delta Electronics India
The Union Budget 2025-26 lays down a strong foundation for India to transition towards becoming a sustainable, technology-driven, and self-reliant economy. The emphasis of the government on green energy, EV infrastructure, AI-led innovation, and digital transformation closely resonates with Delta’s aim to deliver energy-efficient, smart solutions that power the future.
This would place India on further accelerated net-zero emission paths and spur technological leadership for the country simultaneously. Higher penetration of clean mobility will be facilitated through investments in modernising smart grids and EV charging infrastructure.
Delta is placed to help since it leads the market for an EV charging and power solution. The PLI incentives for R&D and manufacturing under the scheme will further cement India’s position as a world manufacturing hub.
Delta continues to utilize its prowess in industrial automation, power electronics, and smart infrastructure for contribution to the development of India. We are hopeful that together with industry stakeholders and policymakers, these budgetary allocations will take on a shape where the vision is turned into an actual path leading to a sustainable, digitally empowered, and future-ready India.
Hitesh Motwani, CEO, Skillopedia & leading Generative AI Trainer
Hitesh Motwani is one of the foremost AI expert in India, he has trained on behalf of companies like Google & Meta in the past, he is a guest faculty with 9 IIMs and trained firms such as Flipkart, HP, Reliance, Adani, Tata Group, GMR Group, Indusind Bank and many more on Generative AI, Machine Learning, Deep Learning and Digital Transformation. He has trained more than 250+ companies to date on Generative AI, ML and Deep Learning.
Mr. Raman Bhatia, Founder & MD, Servotech Renewable Power System Ltd.
I wholeheartedly welcome the forward-thinking Budget 2025 presented by Finance Minister Nirmala Sitharaman. The focus on incentivizing electricity distribution reforms and augmenting transmission capacity is a crucial step towards strengthening the power sector, which is fundamental for the growth of renewables and EVs. The practical approach of allowing additional borrowing for states contingent on these reforms is commendable. The inclusion of 35 additional capital goods for EV battery manufacturing is a significant boost to domestic lithium-ion battery production, a critical component for the EV sector. The proposed National Manufacturing Mission, with its focus on “Make in India” and clean tech manufacturing, including solar PV cells, EV batteries, and other key components, signals a strong commitment to sustainable industrial development. I particularly appreciate the emphasis on improving domestic value addition and building our ecosystem for these crucial technologies. The substantial allocation for private sector-driven R&D and innovation is another welcome move that will further accelerate progress. Overall, these budget announcements create a favorable environment for businesses like ours, operating in the renewable energy, EV, and manufacturing sectors, and will contribute significantly to India’s clean energy transition and economic growth. I thank Finance Minister Nirmala Sitharaman for her vision and commitment to these critical sectors.
Naveeth Menon, VP – Sales & Marketing Operations, BAXY Mobility
“The recent budget announcements have marked a significant step forward in India’s journey towards a cleaner and greener future. By eliminating the basic customs duty on critical materials required for electric vehicle manufacturing, the government has reinforced its commitment to faster EV adoption across the country.
The budget also introduced groundbreaking initiatives to accelerate the shift toward lithium-ion batteries in the EV sector. Tax exemptions for lithium-ion battery manufacturing are set to enhance local production capabilities, positioning India as a global hub for EV manufacturing .The move aligns with India’s broader goals of reducing carbon emissions and achieving energy independence”.
February 3, 2025 at 11:11AM
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Shruti Sinha