Union Budget 2025-26

"The Budget’s customs duty cuts on lithium-ion batteries, alongside the National Critical Mineral Mission, mark a key step in strengthening India’s EV ecosystem. Lower import costs will make EVs more affordable, while investments in domestic mineral exploration, battery manufacturing, and electrolyte production will drive long-term self-reliance. By fostering innovation, local manufacturing, and resource security, India is positioning itself as a global hub for sustainable transport, ensuring a competitive, resilient EV industry aligned with its Net Zero goals."

Saket Mehra
Partner and Auto & EV Industry Leader, Grant Thornton Bharat

"The focus on the four engines of growth—agriculture, MSMEs, investments, and exports—will create rising credit needs that must be met by a broader and more robust financial system. This opens the door for the issuance of more universal bank licenses and the granting of Small Finance Bank licenses to urban and rural co-operative banks."

Vivek Iyer
Partner and Financial Services Risk Leader, Grant Thornton Bharat

"The Investment Friendliness Index will promote pro-business policies, enhancing investor confidence and capital inflows."

Vivek Iyer
Partner and Financial Services Risk Leader, Grant Thornton Bharat

"Indian Toy market is highly fragmented with nearly 90% production being conducted by MSME.. With a focus on of making India a toy hub and a focus on MSME growth will give a massive boost to the Toy Industry and will further enhance acceptability of Indian toys in the global market. India’s toy exports slipped slightly to USD 152.34 million in FY24, highlighting the need for a more robust strategy to boost global competitiveness."

Naveen Malpani
Partner and Consumer Industry Leader, Grant Thornton Bharat

"The government’s five-year mission to enhance cotton productivity with high-quality, long-staple varieties is a game-changer for India’s textile industry. By boosting domestic productivity, this initiative will stabilise raw material availability, reduce import dependence, and enhance the global competitiveness of India’s textile sector, where 80% of capacity is driven by MSMEs."

Naveen Malpani
Partner and Consumer Industry Leader, Grant Thornton Bharat

"The Union Budget 2025 provides a strong fiscal foundation for the FMCG industry, marked by key measures aimed at boosting consumer demand and improving spending power. Moreover, increase in disposable income from tax relief, combined with moderating inflation, will help restore confidence and drive demand in FMCG segments, especially in urban markets which have witnessed a decline for the past few months."

Naveen Malpani
Partner and Consumer Industry Leader, Grant Thornton Bharat

"The Budget’s focus on expanding talent availability and infrastructure in Tier-II cities marks a significant step in strengthening India’s GCC ecosystem. By unlocking access to a wider talent pool, including professionals who prefer to stay in their hometowns, this initiative will enhance workforce stability and retention. As GCCs evolve into strategic hubs for innovation and technology, this expansion will drive inclusive growth, reduce regional disparities, and position India as a global leader in digital and business services. A well-distributed GCC network will ensure long-term resilience, scalability, and global competitiveness."

Jaspreet Singh
Partner and GCC Industry Leader, Grant Thornton Bharat

"Broadband connectivity will be extended to all Primary Healthcare Centres. According to the Economic Survey Report 2024-25, 5G services are now available in 779 out of 783 districts. This will support telemedicine (e-Sanjeevini) and enable technology and AI-driven medical solutions across India, contributing to the achievement of Universal Health Coverage."

Bhanu Prakash Kalmath
Partner and Healthcare Industry Leader, Grant Thornton Bharat

"Enhanced Credit Guarantee Scheme: The credit guarantee cover for micro and small enterprises will be significantly improved. The guaranteed limit will increase from ₹5 crore to ₹10 crore, unlocking an additional ₹1.5 lakh crore in credit over the next five years. This initiative aims to facilitate easier access to credit for MSMEs, thereby supporting their growth and expansion."

Padamanand V
Partner and Agriculture Industry Leader, Grant Thornton Bharat

"Dhan-Dhaanya Krishi Yojana,  is a positive step towards addressing low productivity while also supporting income enhancement for farmers in these areas. It will also promote processing capacity, benefiting nano and micro-enterprises in rural regions."

Ashok Varma
Partner, Education & Skill Development Expert, Grant Thornton Bharat

"Individuals without exemptions or deductions will benefit the most as the slabs have been rationalised. This shows the government’s intent to make the new tax regime more beneficial and promote more individuals to opt for it."

Akhil Chandna
Partner, Tax, Grant Thornton Bharat

"The government's proposed retrospective amendment to the CGST law concerning 'plant or machinery' effectively overrides the Supreme Court's ruling in the landmark Safari Retreats case, where the Court had permitted businesses to claim ITC on properties classified as 'plant' under the functionality test. From taxpayers' perspective, this amendment has far-reaching implications as industries that have structured their ITC claims based on the Safari Retreats ruling or the prevailing interpretation of existing provisions now need to urgently reassess their tax positions."

Krishan Arora
Partner and India Investment Advisory Services Leader, Grant Thornton Bharat

"The Budget's emphasis on electronics manufacturing under the 'Make in India' initiative is a positive step. The exemption of open cells for LED/LCD TVs and capital goods for lithium-ion battery production will enhance domestic production capabilities and reduce reliance on imports. Additionally, the reduction of Basic Customs Duty (BCD) on Carrier Grade Ethernet switches from 20% to 10% is expected to lower costs, streamline classification, and ultimately benefit India's telecom infrastructure development."

Sohrab Bararia
Partner, Tax Planning & Optimisation, Grant Thornton Bharat