Continuing its focus on rapid infrastructure development, the government this time has aided its growth formula with major tax relief for the low-to-mid income individuals. As Finance Minister Nirmala Sitharaman lowered the income tax burden on individuals earning up to Rs 12 lakh per annum, coupled with boosts for the agricultural sector, corporate India cheered the union budget for FY2026.
According to Anish Shah, Group CEO & MD at Mahindra Group, the theme of ‘Make in India for the world’ remains a key focus in this budget, with efforts to reduce India’s manufacturing costs poised to significantly enhance the country’s global competitiveness. In addition to providing an immediate stimulus for demand and growth, the budget emphasises on long-term growth through substantial infrastructure investments and a strong focus on innovation.
“We commend the 2025 Union Budget for its continued support of robust consumption growth through changes in the tax structure, effectively placing more disposable income in the hands of the Indian consumer. This will encourage private sector capex to move in a positive direction,” says Shah.
Mohit Malhotra, CEO, Dabur India feels that tax reliefs offered in the budget will help boost the economy by increasing consumption. “Union Budget 2025-26 marks a pivotal step towards enhancing the financial well-being and quality of life for millions of middle-class families. The substantial tax relief measures, particularly making income up to ₹12 lakh tax-free, will provide essential financial respite to middle-class families, increasing their disposable income, encouraging spending, and promoting overall economic growth. This focus on the middle class addresses a long-standing demand and is a positive step towards a more inclusive and robust economy. I am optimistic that this move will help stem the slowdown in urban consumption and bring it back on the growth track,” says Malhotra.
According to him, the budget’s emphasis on the agricultural sector, with enhanced support for farmers through increased Kisan Credit Card limits and targeted financial incentives, is commendable. These measures will not only strengthen the agricultural backbone of our country but also ensure food security and sustainable growth in the sector.
“The Union Budget 2025-26 is a bold and forward-looking plan that places the middle class at its core while ensuring inclusive and sustainable growth across all sectors. For middle-class families, strategic focus on targeted tax relief and enhanced social security measures, will uplift household sentiments, boost disposable income and drive consumption. This will provide much-needed financial stability to the masses,” says Saugata Gupta, MD & CEO of FMCG major Marico.
According to Gupta, the allocation of Rs 1.71 lakh crore to agriculture and allied activities, coupled with initiatives like the National Mission for Edible Oilseeds, Aatmanirbharta in Pulses, and the Prime Minister Dhan-Dhaanya Krishi Yojana, will drive agricultural productivity, stabilize rural economies, and ensure farmers have access to essential resources.
“This is a well-structured and progressive budget, aligned with the Government’s vision of a Viksit Bharat. It maintains a strong focus on inclusive growth, covering key sectors such as agriculture, farming, women’s empowerment, and manufacturing. The continued emphasis on capital expenditure is commendable,” says Harsha Vardhan Agarwal Vice Chairman & MD, Emami Ltd, adding that a major highlight of this budget is the significant announcement on personal income tax. “By putting more money in the hands of consumers, this step is expected to boost consumption and drive an increase in discretionary spending, ultimately strengthening overall economic momentum.”
Sanjay Dutt, CEO and MD, TATA Realty and Infrastructure feels that the budget underscores India’s forward-looking vision for sustainable growth, urban transformation, and infrastructural excellence.
“We commend the government’s comprehensive approach with its emphasis on increasing purchasing power by increasing the tax limit, strengthening urban infrastructure, governance, and land-use planning, with housing continuing to be a pillar of national growth. Additionally, the extension of tax benefits for self-occupied properties and interest subsidies further empowers homeowners, making housing more accessible and financially feasible,” says Dutt.