Pune Industry Leaders Applaud Union Budget 2025
Shashank Paranjape, managing director of Paranjape Schemes (Construction) Ltd, praised the Union Budget 2025, stating that the transformative steps for the real estate sector will attract investments and create more sustainable, future-ready urban spaces.
Union Budget 2025MsmesStartupsReal EstateUrban InfrastructureReal Estate PuneFeb 02, 2025
Union Finance Minister Nirmala Sitharaman presented a budget that includes significant reforms for micro, small and medium enterprises (MSMEs), startups, and urban infrastructure.
The Maratha Chamber of Commerce Industries and Agriculture (MCCIA) sees the reforms as a significant boost to MSMEs and startups, which are crucial for driving the country’s manufacturing, exports, and employment.
MCCIA’s release highlighted the budget’s new classification for MSMEs, raising the investment and turnover limits by 2.5 and 2 times, respectively.
This move expands the eligibility for more businesses to benefit from various schemes.
MCCIA also praised the budget’s decision to increase the loan limit and guarantees for micro and small enterprises from ₹5 crore to ₹10 crore, which is expected to improve access to affordable credit for millions of MSMEs across the country.
Startups found reasons to celebrate as well, with the budget extending the incorporation period for startups by an additional five years, now valid until 2030.
This extension provides startups with the much-needed time to grow and establish themselves, fostering innovation and entrepreneurship.
A notable highlight for the entrepreneurial ecosystem is the proposal for a new Fund of Funds Scheme (FFS) with a ₹10,000 crore corpus, aimed at spurring venture capital investments in early-stage ventures.
Ninad Karpe, founder and partner of 100X.VC, emphasized the significance of this fund, stating that it will catalyze early-stage investments by VCs, providing crucial risk capital to fuel innovation and growth.
Anuya Nisal, co-founder of Serigen Biotech, echoed similar sentiments, adding that the government’s initiatives will further boost venture capital investments and support the growth trajectory of startups.
However, not all reactions were uniformly celebratory.
Girish Lakhotiya, founder and CEO of Prachay Group, a Pune-based financial solutions provider, acknowledged the relief provided by the raised tax exemption limit of ₹12 lakh for middle-income earners but cautioned against unsustainable fiscal policies.
Baba Kalyani, chairman & MD of Bharat Forge Ltd, emphasized the budget’s focus on key economic drivers, highlighting the importance of the middle class, MSMEs, and the ‘Make in India’ initiative.
The budget also unveiled significant initiatives to drive technological and urban development, including the allocation of ₹500 crore for a Centre of Excellence in AI for Education, aimed at enhancing learning through AI-driven solutions.
Urban infrastructure received a major boost with the announcement of an Urban Challenge Fund worth ₹1 lakh crore, designed to transform cities into growth hubs by promoting creative redevelopment, enhancing water and sanitation, and modernizing urban spaces.
Shashank Paranjape, managing director of Paranjape Schemes (Construction) Ltd, commended the budget’s transformative steps for the real estate sector, noting that it will attract investments and create more sustainable, future-ready urban spaces.
Ajay Agrawal, managing director of BramhaCorp Ltd, highlighted the budget’s key measures to accelerate infrastructure development and revitalize the real estate sector, reflecting the government’s strong commitment to sustainable development and economic growth.
With the budget unveiling a spectrum of reforms aimed at spurring growth across multiple sectors, industry stakeholders in Pune and across India are poised to ride the wave of these transformative measures, setting the stage for a new era of innovation and development.
Frequently Asked Questions
What significant changes were introduced for MSMEs in the Union Budget 2025?
The Union Budget 2025 introduced a new classification for MSMEs, raising the investment and turnover limits by 2.5 and 2 times, respectively. It also increased the loan limit and guarantees for micro and small enterprises from ₹5 crore to ₹10 crore.
How does the budget support startups?
The budget extends the incorporation period for startups by an additional five years, now valid until 2030, and proposes a new Fund of Funds Scheme (FFS) with a ₹10,000 crore corpus to spur venture capital investments in early-stage ventures.
What measures were announced to improve urban infrastructure?
The budget announced an Urban Challenge Fund worth ₹1 lakh crore, designed to transform cities into growth hubs by promoting creative redevelopment, enhancing water and sanitation, and modernizing urban spaces.
How will the budget impact the real estate sector?
The budget introduces measures to attract investments and create more sustainable, future-ready urban spaces, aiming to strengthen city infrastructure and enhance real estate value.
What concerns were raised by some industry leaders?
Some industry leaders, like Girish Lakhotiya, expressed concerns about the sustainability of fiscal policies, particularly the forgone revenue from raising the tax exemption limit for middle-income earners.
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