Sentiments to the Budget 2025
Bizmudra provides a summary of the reactions from Industry Leaders on the policies stated in the Union Budget 2024-25
Mr. Vinod Aggarwal, MD & CEO, VE Commercial Vehicles
"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 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."
Mr. Jyoti Malhotra, Managing Director, Volvo Car India,
"The Union Budget 2025-26 appears to be focused on stimulating consumer spending and fostering economic growth. Measures such as tax rationalisation aim to increase disposable income and boost consumption. The government's commitment to maintaining capital expenditure without raising taxes is a positive step. Overall, the budget seems to be forward-looking and focused on sustainable economic development.”
Mr. Uday Narang, Founder and Chairman, Omega Seiki Pvt. Ltd.
"The Union Budget 2025-26 has taken a commendable step towards strengthening India’s manufacturing ecosystem by removing the Basic Customs Duty (BCD) on critical materials such as cobalt, lithium-ion battery scrap, and lead. These materials are essential for the production of lithium batteries, which are the backbone of the electric vehicle and clean energy industries. By eliminating these duties, the government is not only reducing the cost of production for manufacturers but also accelerating the transition towards more affordable and sustainable technologies."
Mr. Raghupati Singhania, Chairman & MD, JK Tyre & Industries
"The Union Budget 2025-26 lays a strong foundation for India's continued economic resilience and manufacturing excellence. Thrust on green energy transition, manufacturing and ease of doing business will propel the automotive and tyre industries forward. Emphasis on clean tech manufacturing, with incentives for EV components and advanced mobility solutions, aligns well with the automotive sector’s vision for sustainability. Additionally, the measures to strengthen global supply chain integration and streamline trade regulations will bolster India’s global manufacturing competitiveness."
Mr Shailesh Chandra, President, SIAM
" As the Auto Industry transits into cleaner powertrains, in line with the Hon’ble PM’s vision on sustainable mobility, it will specifically benefit from the National Manufacturing Mission, which supports clean tech manufacturing for batteries, motors and controllers. Furthermore, the exemption of critical minerals (e.g. Cobalt, Lead, Zinc etc.), scraps of Lithium-ion battery, and 35 additional capital goods from customs duty will help create a strong EV ecosystem in the country."
Anirudh Bhuwalka, CEO of Blue Energy Motors
“The Union Budget 2025-26 reaffirms the government’s strong commitment to sustainable transportation and the rapid advancement of electric vehicles (EVs) in India. The proposed reforms—ranging from enhanced financial support and tax incentives to substantial investments in EV infrastructure and battery manufacturing—are set to make electric mobility more accessible, affordable, and scalable. These initiatives align seamlessly with our vision at Blue Energy Motors and further reinforce our recent investment in Maharashtra to establish a cutting-edge electric truck manufacturing facility."
Mr. Masood Mallick, Managing Director & CEO, Re Sustainability Limited (ReSL)
The removal of custom duty on waste and scrap from critical minerals, including Antimony, Beryllium, Cobalt, and Lithium-Ion batteries, aims to boost recycling and enhance use of circular minerals in manufacturing. A policy for the recovery of critical minerals the tailings or by-products of mining can also emerge as a significant enabler for India's transition to a more circular economy. These measures have the potential to significantly accelerate our sustainability and circular economy journey, towards our shared goal of a Viksit Bharat by 2047.
Mr. Sunjay J Kapur, Chairman of Sona Comstar and Deputy Chairman, CII Northern Region
“The Union Budget 2025 lays a strong foundation for sustainable urban growth, infrastructure modernisation and a thriving investment climate. The National Manufacturing Mission under Make in India will create a robust framework for industries across solar PV, electrolysers, and grid-scale batteries. The expanded ₹10,000 crore Fund of Funds will provide a vital boost to startups, driving innovation and entrepreneurship. The ₹1 lakh crore Urban Challenge Fund and enhanced infrastructure support will catalyse economic activity and improve liveability in cities. Initiatives like Atal Tinkering Labs, National Centres of Excellence, and IIT expansion will equip India’s youth with future-ready skills."
Mr. Yatin Gupte, Chairman & Managing Director of Wardwizard Innovations & Mobility Ltd,
" We welcome the policies stated in Union Budget 2025-26 by the Hon’ble Finance Minister, which gives a strong push towards EV adoption, accelerating the development of India’s electric vehicle ecosystem. The introduction of a national manufacturing mission for clean tech industries is another commendable move. The recognition of MSMEs as the ‘2nd engine’ of economic growth in the Union Budget 2025 will boost sectoral confidence. The fiscal policies stated to support MSMEs will have a multiplier effect on various sectors, including accelerating India’s e-mobility revolution."
Mr. Kedar Lele, MD, Castrol India Limited,
"The National Manufacturing Mission, outlined in the Union Budget 2025-26, is a key step in strengthening India's clean tech manufacturing ecosystem. By offering tax exemptions on lithium battery production and 35 additional raw materials, the government aims to boost domestic EV battery manufacturing, reducing costs and driving demand for electric vehicles. This presents a valuable opportunity for us to expand our cutting-edge EV portfolio of EV fluids, coolants, transmission fluids, and greases, under Castrol ON. To further accelerate EV growth, we are enhancing R&D initiatives, advancing next-gen EV products and focusing on strengthening OEM partnerships."
Mr. Dheeraj Hinduja, Executive Chairman, Ashok Leyland
“The budget prioritises extensive national infrastructure development and accelerates the digitisation of the economy. Continuous government investments in infrastructure are set to fuel sustained economic growth. Additionally, the government's strong commitment to green mobility is expected to create new avenues for innovation and growth across the country. Furthermore, it reinforces our commitment to clean energy vehicles, contributing to a greener, cleaner future as part of the national mission to achieve net-zero carbon emissions.”
Mr. Baba Kalyani, Chairman & MD of Bharat Forge Ltd
"The budget presents a strong focus on the inherent strengths of the Indian economy and key economic drivers of Viksit Bharat 2047. The 3M's that bring me cheer are - Middle Class, MSMEs and Make in India! Today's Budget continues to deliver on these three levers, and I am confident that these initiatives collectively signal a robust blueprint for India's progressive and inclusive development.”
Mr Rajeev Chaba, CEO Emeritus, JSW MG Motor India
“The Union Budget’s new tax regime introduces substantial relief for young earning professionals and this is a positive sign for all consumer-facing industries. On the automotive front, the Government's focus on enhancing domestic manufacturing capabilities and battery production will help India’s emerging EV market and boost local manufacturing.”
Mr. Udit Sheth, Vice Chairman, Setco Auto Systems Pvt Ltd.
“The Union Budget is robust and with the interventions within it will spur multifaceted growth and consumption. Overall this will positively impact our economy, drive logistics and transport activities that will in turn benefit our MHCV sector. Exciting days ahead!”
Mr. Warren Harris, CEO & MD, Tata Technologies.
"The budget's focus on establishing a National Manufacturing Mission aligns with our goal of engineering in India for 'Make in India' and enhancing the nation's self-reliance in manufacturing. The establishment of five National Centres of Excellence for Skilling is a pivotal move in building a future-ready workforce. This initiative resonates with our commitment to engineering a better future for India's youth through investment in in-demand training programs. Additionally, the allocation of ₹500 crore for a Centre of Excellence in Artificial Intelligence for education underscores the importance of fostering innovation and research in AI."
Mr. Arun Misra, CEO – Hindustan Zinc Limited
"The mining reforms introduced in the budget position India as a key player in the critical minerals sector. The sharing of best practices and institutionalizing a State Mining Index for minor minerals along with a policy for recovery of critical minerals from tailings will enable circularity and innovation within the industry. As the country transitions to a low-carbon economy, these minerals will play a pivotal role, with metals forming the foundation of this shift. The announcement of the National Manufacturing Mission and measures to support MSMEs with access to credit & export assistance will create a robust domestic production ecosystem that will be integrated into global supply chains."
Prashant Tripathy, MD & CEO, Axis Max Life Insurance
“Contributing to India's goal of achieving ‘Insurance for All by 2047,’ the decision to raise FDI in insurance to 100% will drive greater capital infusion into the sector. This move will not only deepen investments but also foster innovation, enhance competition, and accelerate insurance penetration. We welcome this progressive reform, which aligns with our commitment to delivering greater financial security to Indians. With strengthened investment, the industry can further drive digital transformation, develop customer-centric solutions, and expand its reach to those who need it most.”
Further details on the Budget and the FM speech are available here
