The Union Budget 2025 has set the stage for a more inclusive and innovation-driven economy, focusing on fintech, MSMEs, startups, and the insurance sector. Industry leaders have welcomed these measures, highlighting their potential to accelerate growth and financial inclusion.

V. P Nandakumar, MD and CEO, Manappuram Finance Ltd, said, "As Prime Minister Narendra Modi wished, Goddess Lakshmi has blessed the middle class, with Finance Minister Nirmala Sitharaman announcing a large-sized tax relief for this burgeoning population segment in her eighth consecutive budget. The income tax exemption up to Rs 12 lakh per annum makes immense economic sense. The tax reduction will put significant amounts of money into the hands of the middle class, whose propensity to consume and save is very high. This will boost private final consumption and household savings considerably, which in turn will add to economic momentum. It must be remembered that the shrinking Private Final Consumption Expenditure, was the main factor behind the moderation in economic growth in the recent months."

Emphasizing the role of the budget in strengthening India’s fintech ecosystem. Akash Sinha, CEO and co-Founder, Cashfree Payments, noted, "The Union Budget marks a decisive step toward positioning India as a global leader in innovation, with a clear focus on startups, technology, and progressive regulations. The launch of a new ‘Fund of Funds’ will energise the startup ecosystem, enabling creation of the next wave of tech and deep-tech ventures. Also, the introduction of a revamped central KYC system will drive greater transparency and trust within the financial ecosystem. Establishing a Digital Public Infrastructure for international trade will simplify cross-border financing, enhancing India’s role as a key player in global commerce. These initiatives will boost India’s fintech growth and strengthen its role in the digital economy."

Sagar Agarwal, co-founder and managing director of Beams Fintech Fund, called this budget a landmark for fintech and startups. "The government’s focus on fostering innovation, financial inclusion, and entrepreneurship is truly commendable. The Rs 10,000 crore Fund of Funds, expanded credit access, and support for women and SC/ST entrepreneurs will catalyze growth across sectors. The revised tax slabs will boost disposable income. This will have a ripple effect on the lending sector, boosting demand for loans and credit products - a key driver for fintech growth. Also, the focus on insurance sector reforms, such as enhanced FDI limits and expanded coverage for underserved communities, complements the fintech sector’s efforts to deliver holistic financial solutions. For the fintech sector, the emphasis on digital infrastructure, cybersecurity, and innovation in technologies like AI and blockchain is particularly encouraging. These initiatives will strengthen trust in digital financial services and expand their reach to underserved regions."

Ashok Mittal, MD and CEO, BillMart Fintech, highlighted the impact of budgetary provisions on MSMEs. "With MSMEs contributing 45% to exports, the enhanced classification limits will further empower them. For fintech and digital lending companies, this creates a robust environment to provide seamless credit access, enabling MSMEs to scale operations and invest in expansion. The government’s steadfast commitment to ease of doing business, along with a revised capex of Rs 10.18 lakh crore, will strengthen the digital financial ecosystem, bridging liquidity gaps and fostering long-term robustness in India’s financial landscape."

Ajay Kumar Srivastava, MD & CEO, Indian Overseas Bank, welcomed the budget’s focus on agriculture and MSMEs. "Enhancing the Kisan Credit Card loan limit to Rs 5 lakh and doubling the guarantee cover for MSMEs will improve productivity and foster entrepreneurship. The proposal to extend interest free loans to states for 50 years is surely a bold step that will accelerate development of infrastructure and boost economic growth."

Avinash Gupta, managing director and CEO - India, Dun & Bradstreet, shared, "The revised MSME classification will bring with it three key advantages: firstly, increased turnover limits will remove constraints that previously discouraged growth, enabling businesses to scale without losing MSME benefits; secondly, more enterprises will now qualify for government support, expanding access to critical incentives and financing; and thirdly, increased investment thresholds will allow MSMEs to adopt modern technology and machinery, enhancing productivity and global competitiveness. The government’s support in helping MSMEs navigate non-tariff barriers in overseas markets is a timely intervention as India adapts to evolving global trade dynamics. Measures such as improved access to export credit, cross-border factoring, and the establishment of BharatTradeNet will ease financial constraints, strengthen global integration, and unlock new opportunities."

Lauding the dedicated scheme for five lakh first-time entrepreneurs, Tushar Aggarwal, co-Founder, Stashfin, said, "The new scheme, coupled with simplified financing and incubation support, will create a more inclusive financial landscape. Additionally, the expansion of the Rs 10,000 crore Fund of Funds will offer stronger financial backing, allowing startups to scale with greater agility. The planned revamp of the Central KYC Registry is another critical step in reducing bottlenecks in loan processing, ensuring smoother verification, and improving access to credit."

Madhu Lunawat, managing director, The Wealth Company ( Formerly Known as Pantomath Capital Management), echoed similar sentiments. "Startups are at the heart of India’s growth story. The new Fund of Funds will provide much-needed growth capital. This aligns with Viksit Bharat 2047, targeting 8% annual growth and increased capital expenditure."

Praising the government’s commitment to deep-tech and clean-tech investments, Amit Mehta, managing partner, Asha Ventures, stated, "The proposed Deep Tech Fund of Funds is a decisive step in catalyzing the next generation of innovation-driven startups, unlocking new frontiers in AI, robotics, and advanced manufacturing. Additionally, the government’s support for clean-tech manufacturing, particularly in EV battery and renewable energy infrastructure, aligns with India’s net-zero ambitions and strengthens the domestic supply chain."

Echoing similar sentiments, Rahul Agarwalla, managing partner at SenseAI Partners LLP, added, "The Rs 10,000 crore Fund of Funds and Rs 20,000 crore investment in R&D signal that AI and deep tech are now central to India’s growth strategy. We see this as a transformational moment—where AI-first startups will go beyond proof-of-concept and scale into global enterprises. The push for AI skilling, research fellowships, and IIT expansion ensures that India isn’t just adopting AI but creating the next generation of AI pioneers."

Sumit Bohra, president, Insurance Brokers Association of India (IBAI), welcomed the increase in the FDI limit to 100%. "This will help attract more foreign capital, enhance underwriting capacity, and foster innovation through global partnerships. The government’s focus on insurance as a pillar of financial security is encouraging. Also the decision on nil income tax payable up to Rs 12 lakh, this segment of consumers should become target for buying insurance increased cover. This measure of the government can contribute to increasing insurance penetration."

On the other hand, Pavanjit Singh Dhingra, joint managing director, Prudent Insurance Brokers, believed, "With global companies seeking investment opportunities in India, the move to raise FDI limits will lead to increased innovation, capacity and choice for the end consumers both in terms of products and services. This move will further expand coverages for businesses, cyber risks and credit protection."

Pushkaraj Bidwai, CEO of People Matters, emphasized the budget’s workforce development impact. "The increase in the income tax exemption limit to Rs 12 lakh will foster financial security and boost consumer spending. Meanwhile, National Centres of Excellence for Skilling will bridge the gap between education and industry demands, ensuring India’s workforce is future-ready."

"While the intent is strong, execution will determine impact. The success of these initiatives hinges on industry collaboration, agile policymaking, and the ability to translate investments into real employment opportunities. If implemented effectively, these measures could redefine India’s position as a global hub for talent, technology, and manufacturing," Bidwai added.

With a clear roadmap for fintech, startups, MSMEs, and the insurance sector, the Union Budget 2025 lays a foundation for sustainable economic growth. However, effective execution and industry collaboration will be key to realizing its full potential.