On February 1, 2025, Union Finance Minister of India, Nirmala Sitharaman presented her 8th Budget i.e., Union Budget for 2025-26 in Parliament. During her speech, FM emphasized the focus areas of this year’s budget which include agriculture, industry, health, and education. This year’s budget also provides relief offering to the common public of the nation, as well as creates opportunities for employment.
The Union Budget 2025-26 put the focus on improving welfare programmes in addition to financial incentives specifically for women, poor, youth and farmers.
To understand the implications of the budget announcement, Women Entrepreneurs Review Magazine spoke to numerous women leaders from diverse sectors, to know what they think of this new Budget and how it can facilitate India’s growth.
Let’s see what they said.
Priyanka Bhargav , Senior Director , Flipkart
"Budget's Commitment To Enhancing Domestic Manufacturing And Supporting Rural Consumption Positions Is Very Encouraging"
In my opinion a no negative budget is a positive budget in itself. Union Budget 2024-25 presents a balanced approach that is likely to enhance consumer spending and support India’s growth strategy. The increase in the standard deduction from ₹50,000 to ₹75,000 Income Tax exemption upto Rs 12L of income will provide more disposable income, potentially boosting consumer spending by approximately 10-15% in the retail sector.
Overall, the budget's commitment to enhancing domestic manufacturing and supporting rural consumption positions is very encouraging.
Poor, Women, Yuva & Farmers to Receive Benefits
The future of a country and society is assessed by how empowered the women of the country are. The Union Budget signals the government's commitment towards the enhanced role of women in economic development. I have read that more than 3 Lakh crore is allocated for schemes benefitting women and girls. Working women hostels to be set up in collaboration with industry.
The budget focuses on ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (GenZ) and ‘Annadata’ (Farmer).
The Union Minister informed that the Government will facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches. In addition, the partnership will seek to organize women-specific skilling programmes, and promotion of market access for women SHG enterprises. With specific focus on MSMEs again I feel the women cohort will benefit meaningfully.
Budget Provides Significant Opportunity to MSMEs
The Union Budget brings significant opportunities for all the sectors in India. A key highlight is the reduction in the Tax Deducted at Source (TDS) rate. This change will free up substantial working capital for sellers, particularly benefiting micro, small, and medium enterprises (MSMEs). In fact, all of the benefits mentioned in point #2 will help here.
Another transformative initiative is the establishment of dedicated export hubs. These hubs aim to streamline logistics and regulatory processes, including customs clearance and warehousing, to boost India's exports. This move is expected to create jobs, enhance global market
access for Indian businesses, and position India as a key player. The Union Budget 2025 reflects a positive step toward women’s economic empowerment with initiatives like Lakhpati Didi and working women hostels. It’s encouraging to see a focus on empowering women in business and stimulating growth in key industries. However, there are still some areas for improvement in execution. Women entrepreneurs continue to face challenges such as limited access to credit, high-interest rates and a lack of sufficient financial incentives.
Reema Diwan, Vice President, Accor
"The focus on infrastructure growth is promising for boosting tourism & hospitality industry"
Despite these efforts, securing credit and scaling businesses remains difficult for women entrepreneurs, with limited tax relief and direct funding support. Additionally, while healthcare provisions for women, including maternal care and social security for informal workers, have been addressed, there is room for enhancement in these areas.
No Respite for Hospitality MSMEs Reeling Under Rising Costs
For the hospitality industry, the focus on infrastructure growth is promising for boosting tourism. However, no direct relief was provided for hospitality MSMEs, which are grappling with rising costs, labour shortages and high GST rates. Women in hospitality, often in unstable roles, are disproportionately affected by the absence of wage parity reforms.
Rural and marginalized women may also face challenges in accessing budget benefits, due to factors like limited awareness, the digital divide, and bureaucratic hurdles.
While the budget makes positive strides toward women’s economic inclusion, its impact will depend on strong implementation, infrastructure, and access to finance. To create lasting change, future policies must focus on long-term structural reforms that remove gender barriers in employment, entrepreneurship and
financial independence, ensuring that the benefits of empowerment are truly widespread. The Union Budget 2025 lays a strong foundation for long-term, inclusive growth. We appreciate its emphasis on strengthening Research and Development, thus fostering innovation. The budget’s support for the automotive component industry and MSMEs through various initiatives such as supply chain enhancements, export promotion, and streamlining of customs duties and tax structures will be instrumental in driving India’s self-reliance in advanced automotive technology.
“We particularly appreciate the focus on skill development and workforce participation, especially for women”
We welcome the continued emphasis on technology as a driver of economic expansion, particularly in digital public infrastructure and R&D-led innovation. The establishment of Centres of Excellence in AI for education and initiatives like BharatTradeNet and the export promotion mission will not only support global supply chain integration but also open new avenues for AI-driven automotive advancements, autonomous mobility research, and smart manufacturing. Therefore, strengthening R&D capabilities will be crucial in positioning India as a global leader in automotive technology.
The restructuring of income tax slabs is expected to boost consumer demand which could further drive demand for technologically advanced, connected vehicles.
Focus on Skill Development Commendable
We particularly appreciate the focus on skill development and workforce participation, especially for women. Investments in STEM education, upskilling programs, and global skilling partnerships will ensure that India builds a future-ready talent pipeline. This will further encourage greater participation of women in R&D and manufacturing and help foster a more inclusive and diverse workforce, thus strengthening India’s position as a global innovation hub.
What the Automotive Industry can Expect
The automotive industry stands at a transformative juncture, and with the right policy framework, India has the potential to lead in next-generation mobility solutions. The budget’s measures will drive R&D excellence, productivity, and global competitiveness, paving the way for India’s emergence as a hub for
cutting-edge automotive technology and innovation.” The budget was middle class friendly with the tax incentives. This will lead to consumption led growth. It will boost discretionary capital spends like buying a vehicle etc. Taxpayers will have better repaying capacity for EMIs. As infrastructure projects gain momentum and consumption picks up, improved roads, connectivity, and logistics will undoubtedly drive increased demand for freight and commercial transport solutions. On the downside, the defence budget remains below 2 percent of GDP that is a concern, given India’s security needs.
“Focus on boosting consumption through higher personal income tax exemptions and greater relief for senior citizens is a welcome move”
Women to Benefit from Tax Cuts
Tax cuts will help women as large number of women are employed in professions that pay less than 12 lakhs. This year's gender budget introduces a significant initiative aimed at empowering first-time entrepreneurs, including women, with term loans up to INR 2 crore over the next five years. Women's workforce participation has been a pressing issue and a key priority in every budget. This year’s Mudra loans will help women entrepreneurs.
What Retail Industry Can Expect
From a retail sector perspective, the budget's focus on boosting consumption through higher personal income tax exemptions and greater relief for senior citizens is a welcome move. This will undoubtedly increase disposable income and drive retail demand. Overall, this budget will be a huge boost to the retail industry as the tax cuts will increase the spending power of the middle class.
“We particularly appreciate the focus on skill development and workforce participation, especially for women”
The 2025 Indian budget comes across as a forward-thinking budget that sets the stage for an accelerated growth, economic stability, and inclusive development.
The government has introduced several initiatives this budget, such as increased funding for first time women entrepreneurs, enhanced credit guarantee for micro and small enterprises and improved maternity benefits. These measures are expected to significantly boost female participation in the workforce and pave the way for more women at leadership positions. It reflects the government’s commitment towards women-led growth and women empowerment.
Skill Development & Digital Transformation in Focus
There is also a significant focus on investment in people and innovation with emphasis on skill development and digital transformation. The initiatives in digital infrastructure and AI-driven growth are poised to significantly impact the financial services industry, which is swiftly adapting to the advanced global AI era in pursuit of operational efficiencies. Budget 2025 recognizes the transformative power of technology and innovation and enables the workforce to contribute more to the global talent pool via knowledge process outsourcing firms like Acuity Knowledge Partners, that supports more than 600 financial institutions globally.
Overall, the 2025 budget is a transformative step towards a more sustainable growth agenda that combines innovation with inclusivity!
