Budget to boost consumption and foster innovation, say industry leaders in Gujarat

Ahmedabad, Feb 1 (PTI) Industry leaders from Gujarat on Saturday lauded the Union Budget for its “practical” approach with a focus on healthcare, agriculture, MSME and education, and said it would boost consumption and foster innovation.

Rajiv Gandhi, chairman-FICCI Gujarat Council and CEO and MD of Hester Biosciences Ltd, said the Budget strengthens healthcare accessibility by exempting 36 life-saving drugs from basic customs duty and reducing the levy to 5 per cent on six critical medicines.

“This will lower costs for cancer treatment and rare disease remedies, easing the financial burden on patients. The government also aims to expand medical education by adding 10,000 seats next year, supporting its goal of 75,000 new seats in five years,” he said.

“The Budget provides a stable framework to support MSMEs (Micro, Small and Medium Enterprises) and economic growth. Raising the basic exemption limit and exempting income to Rs 12 lakh will boost consumption, helping counter the economic slowdown,” he said.

Presenting the Union Budget 2025-26 on Saturday, Finance Minister Nirmala Sitharaman said that no income tax would be payable up to income of Rs 12 lakh annually, a move aimed at giving relief to the middle class.

“Overall, it is a steady and practical budget focused on sustaining momentum,” Gandhi added.

According to the CEO of Wagh Bakri Tea Group Sanjay Singal, the finance minister has struck a fine balance between fiscal prudence and economic stimulus.

“The increase in the tax-free income limit to Rs 12 lakh will significantly boost consumer spending. This move is expected to drive demand across FMCG (fast-moving consumer goods) and various sectors and accelerate the Indian economy,” he said.

The budget also focuses on the agriculture sector, with initiatives for enhancing agri output, crop diversification, and many more to enhance farmers’ earnings, Singal said.

“The host of measures announced for supporting MSMEs, boosting exports, and enhancing Ease of Doing Business by reducing compliance burden will go a long way in furthering ‘Make in India’,” he added.

Vishwas Patel, joint managing director of Infibeam Avenues Ltd and chairman of Payment Council of India, said the Budget presents “a positive trajectory for the Indian economy, with strategic measures aimed at enhancing consumption, fostering innovation, and accelerating digital transformation”.

The tax relief of up to Rs 12 lakh will significantly increase disposable income for individuals and stimulate household consumption, driving demands across various sectors, he said.

“With higher consumer spending, the digital payments ecosystem is poised for exponential growth, further strengthening India’s financial technology landscape. Additionally, the introduction of a Rs 10,000-crore ‘Fund of Funds’ for startups marks a major step towards bolstering entrepreneurial growth,” he said.

Founder and CEO of Kalorex Group, Manjula Pooja Shroff, welcomed the “strong” emphasis on education, research and skilling and the announcement of 10,000 fellowships for technological research in IITs (Indian Institutes of Technology) and IISc (Indian Institute of Science), and said the move would boost innovation.

“The capacity expansion of IITs and medical colleges, and setting of a Centre of Excellence in AI for Education and National Centres of Excellence for Skilling are the need of the hour,” she said.

Setting up 50,000 ‘Atal Tinkering Labs’ in five years will promote curiosity and innovation in young minds, Shroff said, adding that there is also a focus on startups and skilling, which will go a long way in promoting entrepreneurship. PTI KA NR

Source: PTI