Budget 2025: Major Boost For India’s Industrial And Logistics Sectors
Budget 2025: Major Boost For India’s Industrial And Logistics Sectors
Budget 2025 sets the stage for a significant transformation in India’s industrial and logistics sectors, with a particular focus on the toy manufacturing industry. Key initiatives such as PM Gati Shakti and critical infrastructure upgrades aim to reduce logistics costs, enhance efficiency, and increase demand for warehousing and storage, positioning India as a global manufacturing hub.
The integration of PM Gati Shakti’s digital infrastructure and data mapping is expected to drive investments, boost private sector participation, and improve operational efficiencies. Combined with a strong policy framework and rising demand, India is well-placed to emerge as a global leader in manufacturing and logistics.
Continued momentum from PM Gati Shakti, coupled with infrastructure developments like Bharat Trade Net and air cargo enhancements, is projected to reduce logistics costs and streamline domestic manufacturing. These measures, part of the “Make in India” and “Atmanirbhar Bharat” initiatives, will significantly benefit the toy industry by reducing import dependency and offering business incentives. The advanced logistics network integration will ensure faster deliveries and efficient distribution, enhancing India’s competitiveness in global trade.
Sunil Agarwal, Co-founder and Chairman of Joy Personal Care (RSH Global), “We welcome the government’s budget for its strategic focus on economic growth through increased consumer spending power. The proposed income tax reforms are poised to enhance disposable income, driving demand across the FMCG sector, including beauty and personal care.By prioritizing inclusive development—supporting disadvantaged groups, youth, farmers, and women—the budget strengthens purchasing power, further stimulating market demand. Additionally, initiatives aimed at boosting farm productivity, manufacturing, and exports—such as a national mission for high-yield crops and subsidized credit for farmers—will fortify supply chains and optimize input costs, ensuring long-term sectoral growth.
Taxation reforms, including potential corporate tax reductions, and streamlined tax procedures, will foster a more competitive and business-friendly landscape. Furthermore, investments in digital infrastructure, skill development, and MSME promotion will serve as key enablers of sustained consumption and economic expansion. The introduction of the National Manufacturing Mission further reinforces this vision by incentivizing manufacturing activities, enhancing production capabilities, and promoting innovation, thereby improving the global competitiveness of Indian manufacturing—a significant advantage for home-grown brands.”
https://www.mypunepulse.com/budget-2025-government-to-establish-makhana-board-in-bihar-to-boost-production-and-processing/Aasif Malbari, Chief Financial Officer – Godrej Consumer Products Ltd. shared, “The Union Budget 2025 takes a balanced approach by strengthening rural infrastructure, manufacturing, and consumer spending—three critical pillars for the FMCG sector. Investments in rural development and job creation will boost economic activity and drive higher consumption, opening new opportunities for market expansion. The National Manufacturing Mission is a strong step toward enhancing domestic production, reducing import dependencies, and improving cost efficiencies. Additionally, tax reforms benefiting the middle class will increase disposable income, further fueling demand across essential and aspirational FMCG categories.
Overall, the Budget lays a strong foundation for a more consumption-driven economy, creating significant growth opportunities for the FMCG industry.”
T S Kalyanaraman, Managing Director, Kalyan Jewellers, “The Union Budget 2025-26, presented by Finance Minister Smt. Nirmala Sitharaman has a laser sharp focus on boosting economic growth. With definitive steps in infrastructure investment and key support for agriculture, manufacturing and urban development, there is a deep commitment to continue on the growth momentum. As brands continue their growth in the real Bharat, the Centres of Excellence for Skilling, coupled with global skilling partnerships, will add to the available talent pool. The tax reforms proposed in the Budget will ensure that the consuming class will have enhanced discretionary income in their hands leading to a significant demand stimulus. This Union Budget will definitely energise the market sentiment and is another key step to realising our combined vision of a Viksit Bharat!”
Girish Kousgi, MD & CEO, PNB Housing Finance said, “The Union Budget 2025 reflects the government’s steadfast commitment to strengthening the Indian economy through fiscal prudence and growth-oriented policies. The housing sector continues to be a key pillar of economic development, and we are encouraged by the progressive measures aimed at enhancing housing affordability and accessibility for millions of Indians. The increase in the income tax exemption limit to ₹12 lakh will significantly boost disposable income, enhancing purchasing power and potentially increasing housing demand. Additionally, the completion of 50,000 dwelling units under stressed housing projects, with another 40,000 units set to be delivered in 2025, offers much-needed relief to middle-class families burdened by EMIs and rent. The establishment of SWAMIH Fund II, a ₹15,000 crore blended finance facility, will further accelerate the completion of another one lakh housing units, reinforcing the government’s focus on resolving housing stress. We are optimistic that the sustained economic momentum, coupled with the government’s visionary policies, will drive long-term growth in the housing and real estate sectors, contributing to India’s vision of inclusive and sustainable development.”
Munjal Shah, Managing Director of Paras Defence & Space Technologies, on the Union Budget 2025-26 said, “The Union Budget 2025-26 reinforces India’s commitment to strengthening its defence and aerospace capabilities, with a significant allocation of ₹4,91,732 crore. The ₹20,000 crore push for private sector-led R&D is a defining moment, paving the way for cutting-edge advancements in optronics, AI-driven surveillance, defence electronics, and space technologies—all key focus areas for Paras Defence. The emphasis on geospatial intelligence, AI research, and next-gen ISR (Intelligence, Surveillance, and Reconnaissance) systems signals a clear shift toward high-tech defence solutions. Additionally, the government’s commitment to the ‘Make in India’ initiative and reduced import dependency presents a strong opportunity for indigenous companies to lead the next wave of innovation in electro-optics, aerospace, and EMP protection solutions. With ₹20,000 crore dedicated to private sector-driven R&D, this budget sets the stage for deeper industry-academia collaboration, fostering indigenous advancements in high-precision surveillance, autonomous defence systems, and space-based intelligence solutions.
With India’s defence modernization in full swing, this budget creates the right environment for industry-driven advancements. At Paras Defence, we are excited to leverage these opportunities and continue delivering world-class, homegrown solutions that will shape the future of India’s defence and space sectors”.
Niranjan Kirloskar, MD – Fleetguard Filters Ltd.
“ The Union Budget presented today, demonstrates our government’s will to boost India’s manufacturing sector. Introducing a ‘National Manufacturing Mission,’ with an 89% increased allocation to ₹16,092 crore, highlights our government’s dedication to improving domestic production capabilities. Extending PLI schemes to various sectors is a good strategic move to diversify and strengthen local manufacturing. The much-needed tax reforms, like higher exemptions and simplifying tax slabs, will improve consumer sentiment and spending, invariably stimulating demand for various manufactured goods. Additionally, the announcement to set-up a centre for AI, and readying talent for Industry 4.0 will provide a much-needed impetus to all industries enabling crucial job-creation and for us to ‘Make in India – For the World’. Lastly, a focus on infrastructure development and digitisation will create a more favourable environment for domestic manufacturing operations. I remain optimistic that these measures will enhance our nation’s global competitiveness, and contribute to overall sustainable economic growth!”
Ajjay Parge, Founder, Qubit India shared, “Affordable housing in India has been a hiccup in the real estate sector over the past two years, with the availability of homes under ₹1 crore shrinking by 36%. To narrow the housing gap within the affordable segment and to maximize market potential, the government has provided the much-needed push by addressing the existing challenges on both the demand and supply sides. The proposed ₹15,000 crore SWAMIH Fund 2, which is a blended finance facility with contributions from the government, banks, and private investors, directly addresses these challenges by unlocking liquidity for stalled projects and ensuring the completion of 1 lakh housing units. On the supply side, it will relaunch stalled projects, helping developers complete homes efficiently and reduce financial distress in real estate. On the demand side, it gives much-needed relief to middle-class families dealing with both loan payments and rent, thus ensuring more affordable housing options. With India’s affordable housing shortage projected to reach 31.2 million by 2030, targeted financial support is essential to align affordability with availability. This initiative not only strengthens the real estate sector’s resilience but also helps the affordable housing segment to align with the growth trajectory of luxury housing, advancing India toward a $4.8 trillion real estate market by 2047, contributing 18% to the projected $26 trillion GDP.
Warren Harris, CEO & MD, Tata Technologies stated, “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. This initiative is poised to attract investments and improve efficiency, positioning Indian companies as globally competitive players. 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 across Industry 4.0, IoT, and advanced manufacturing, and collaborating with state governments to upgrade ITIs into technology hubs. 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, which will benefit both the education sector and the broader technology landscape.”
Girish Tanti, Vice Chairman, Suzlon, shared his views. He said, “The Government budget seems to be a significant step towards achieving India’s ambitious energy goals. By strengthening Aatmanirbhar Bharat across manufacturing and agriculture, with a focus on clean tech, wind, solar, EV, and battery storage, the budget aims to accelerate self-reliance in wind and solar manufacturing. The National Manufacturing Mission’s targeted support for all renewable energy sources is a welcome move, as it reinforces India’s commitment to a level playing field and ambitious energy goals. The expected outcomes are promising: surpassing the 500 GW target and creating nearly 3 million green jobs. Additionally, incentives for electricity distribution reforms and intra-state transmission upgrades will likely improve the financial health of power companies and enable better grid integration of renewables. This comprehensive approach should have a positive impact on India’s economy and population. “The key word is Eco-System : the nation cannot rely on just individual solutions to achieve its green transition at lowest cost to customers. It requires a judicious mix of wind, solar, batteries and other non-fossil technologies, together with distribution reforms. And for national security, we need to build this expertise locally, requiring the build-out of all these industries at scale. We are happy that this budget recognises this need. Suzlon is keen to work with the government and together with our fellow industrial groups to realise this vision.”
Saurabh Dhanorkar, Managing Director, Finolex Industries
“The Union Budget’s strong emphasis on infrastructure development, particularly through the extension of the Jal Jeevan Mission until 2028, reflects a firm commitment to sustainable water management and rural development. The focus on enhancing the quality of infrastructure and improving operation and maintenance of rural piped water supply schemes through Jan Bhagidhari is a critical step toward ensuring long-term water security. The signing of separate MoUs with states and UTs to promote citizen-centric water service delivery further reinforces this commitment. Additionally, initiatives like the Prime Minister Dhan Dhanya Krishi Yojana, aimed at improving irrigation facilities, will indirectly support the growth of water infrastructure across agricultural regions. Together, these measures create significant opportunities for the piping industry to contribute to the development of robust, sustainable solutions that will benefit both rural communities and the broader infrastructure ecosystem.”
