The Union Budget 2025-26 aims at transforming India into a global manufacturing hub, with a strong emphasis on enhancing ease of doing business, workforce upskilling, and infrastructure development. Key initiatives such as the National Manufacturing Mission, targeted sectoral reforms, and investments in transport infrastructure are expected to play a key role in strengthening domestic manufacturing, boosting exports, and creating employment opportunities. Further, the focus on sustainable growth, affordable housing, and asset monetisation will foster urbanisation, innovation, and industry growth. These reforms will lead to a more resilient, competitive, and self-reliant India, poised for long-term economic success. Industry experts share their reactions for the transportation and urban infrastructure sector…
Rizwan Soomar, Chief Executive Officer and Managing Director, DP World Middle East North Africa, and India Subcontinent
“The Union Budget will significantly enhance ease of doing business, workforce skilling and manufacturing competitiveness with its continued focus on development of maritime infrastructure, domestic air connectivity, development of dedicated rail freight corridors (DFCs) and large-scale port modernisation. The government’s commitment to inland water transport through the tonnage tax scheme will provide a more sustainable and cost-effective way of cargo movement.
The Bharat Trade Net aimed at simplifying trade documentation and will help optimise supply chains through data-driven decision-making. The Rs 250 billion Maritime Development Fund will enhance financial stability and competitiveness for indigenous shipbuilding and other infrastructure projects encouraging private investments. The extension of Basic Customs Duty (BCD) exemption for raw materials in shipbuilding and shipbreaking is a significant step, reducing dependency on imports.
Streamlining export compliance procedures and customs duty reforms indicate a continued commitment to reducing manufacturing costs, making Indian industries more competitive. Targeted sectoral initiatives under the National Manufacturing Mission underscore the government’s ambition to create a resilient domestic production ecosystem. These measures will not only boost exports but also generate employment opportunities.
The decision to share PM Gati Shakti data with private companies is a welcome move that will drive investment and efficiency in infrastructure development. Access to comprehensive project data will enable better planning and execution, fostering growth across sectors.
Overall, the Union Budget 2025 takes a decisive step toward transitioning from ‘Make in India’ to ‘Make in India for the World,’ leveraging infrastructure expansion, policy reforms, and human capital setting the foundation for a more resilient, efficient, and competitive India.”
Vivek Lohia, Managing Director, Jupiter Wagons Limited
“India’s investment in rolling stock goes beyond infrastructure, it is a strategic driver of industrial growth, economic efficiency, and sustainable mobility. The 2025-26 Union Budget reinforces this vision with a record Rs 2,520 billion capital outlay for railways, including Rs 455.30 billion dedicated to rolling stock, marking a decisive step in modernizing the railway network and strengthening its role in economic development.
This investment will accelerate the adoption of advanced rolling stock like Vande Bharat trains and WAG-12 locomotive, enhancing safety, efficiency, and passenger comfort. It will also boost domestic manufacturing, benefiting key industry players and generating employment across multiple sectors. With freight movement set to expand, this initiative will help lower logistics costs and increase rail’s modal share from 27 per cent to 45 per cent by 2030 under the National Rail Plan (NRP).
By aligning with India’s long-term infrastructure and sustainability goals, this focus on rolling stock will create a future-ready railway network, driving industrial growth, economic expansion, and nationwide connectivity.”
Arun Shukla, President & Director, JK Lakshmi Cement Ltd
“As we continue to build a stronger future for India, the 2025 Union Budget offers a clear path forward, focusing on sustainable growth, affordable housing, and infrastructure development. The completion of 50,000 dwelling units in stressed housing projects and the Rs 1.5 trillion allocation for infrastructure will bring much-needed relief to middle-class families, helping them move closer to homeownership while fostering rapid urbanisation. We are optimistic about the Rs 10 trillion asset monetisation plan, which will infuse capital into new projects, sparking innovation across key sectors. Additionally, the focus on expanding infrastructure through PPP models and streamlining trade and warehousing facilities will create a conducive environment for cement demand, driving sustainable growth in the industry. These initiatives will play a crucial role in building the foundation for India’s future.”
Anurag Gupta, Partner, Deloitte India
“A very robust budget, Government has shifted right gears for infrastructure push. Reigniting PPPs to boost investment, recalibrating & scaling up UDAN scheme as well as focus on O&M in sectors like water is really welcoming. Government has sent a clear message that quality of infra delivery for common man will be core focus and will be rightly delivered in collaboration with private sector.”
Raghav Madan, Director, Deloitte India
“National Infrastructure Pipeline has encouraged ministries to innovate and explore alternate sources of financing. The second phase of NIP is expected to further encourage this innovation, including encouraging other classes of investors to participate in Indian infrastructure. While the details of the budget are awaited, we hope to see further regulatory reforms to increase investments by insurance funds and provident funds in operating infrastructure. Similarly, Public InvITs by government agencies like NHAI can help in achieving this new NIP target.”
Amit Bhargava, Partner and National Head, Mining & Metals, KPMG in India
“Union Budget 2025 has recognised and empowered the aspirations of the metals and mining sector to further strengthen its global positioning, in terms of scale of production, greener product offerings and increased innovation.
The budget supports specifically in realising mining potential, availability of digital capabilities, increasing value chain competitiveness, enabling energy transition and decarbonisation, encouraging critical minerals related circularity and logistics efficiency.
Some of the key takeaways are:
- Minor minerals mining and critical minerals recovery from tailings is a step to realise the potential of mining and availability of critical minerals (including exemption/ reduction of BCD on key critical minerals).
- Empowering MSMEs to enhance exports, access to technology and funding would be a step for improving the competitiveness of sector’s downstream value chain.
- Clean technology focus that helps establishing domestic solar/ EV related manufacturing would be critical in further expediting the energy transition of the sector.
- Centre of Excellence for AI and emphasis on Industry 4.0 would be instrumental in ensuring availability of key digital capabilities, so critically required by the sector.
- India post infrastructure to be leveraged in bringing in greater logistics efficiencies.”
Dibyanshu, Partner, Khaitan & Co
“Infrastructure Development in line with India’s 2047 Goals:
The Union Budget reemphasises India’s commitment to robust economic growth and sustainable development, as highlighted in the Economic Survey. With a Rs 1.5 trillion capital expenditure support to states and a structured PPP pipeline, the budget ensures continued infrastructure expansion. These initiatives align with India’s goal of attaining developed nation status by 2047, while maintaining fiscal discipline and inclusivity.
The Union Budget strengthens PPP by requiring each infrastructure ministry to develop a three-year pipeline of PPP projects. States are also encouraged to seek support from the India Infrastructure Project Development Fund (IIPDF). Additionally, a Rs 1.5 trillion outlay in 50-year interest-free loans to states for capital expenditure and reform incentives will catalyse infrastructure development.
Power Sector Reforms:
The recent Economic Survey underscored India’s low per capita carbon emissions yet its commitment to low-carbon growth.
The government continues its commitment to power sector reforms by incentivising DISCOM efficiency and strengthening intra-state grid capacity. These measures will enhance energy infrastructure development, particularly benefiting the renewable energy sector.
The Budget addresses key challenges—grid storage technology and critical mineral access—through increased investment in intra-state grid expansion and mining sector reforms, ensuring a more resilient renewable energy ecosystem.
Nuclear Energy Mission – A Paradigm Shift:
A landmark move in this year’s budget is the launch of the Nuclear Energy Mission, aiming for at least 100 GW of nuclear capacity. The Rs 200 billion earmarked for this initiative, including R&D for Small Modular Reactors (SMRs), signals a significant step toward energy security and holistic energy mix. Potential amendments to the applicable regulatory framework could pave the way for private sector and foreign investment, a long-awaited reform.
Mineral Reforms:
The budget promises mining sector reforms, including a State Mining Index and best practice sharing for minor minerals. These steps will help secure essential resources needed for India’s ambitious energy transition goals and will incentivise states to enhance mineral exploration and production. States can attract more investments in mining and allied industries, boosting revenue and job creation.”
Shivanshu Thaplyal, Partner, Khaitan & Co
“The proposed three-year pipeline of projects by states to be given that could be implemented through private-public partnership (PPP) mode is encouraging. It will be interesting to see how each infrastructure-related ministry comes up with a three-year plan to be implemented in PPP mode. The outlay of Rs 1.5 trillion is proposed for 50-year interest-free loans is a welcome step.”
Deepto Roy, Partner, Infrastructure, Energy & Project Finance, Shardul Amarchand Mangaldas and Co.
“The government has identified the need for massive public investment in infrastructure over the next few years. Influx of funds – anticipated at Rs 10 trillion – from the monetisation process would be channeled into greenfield projects which will generate employment and also massively improve public infrastructure and accelerate energy transition.“
Mrinal Kumar, Partner, Shardul Amarchand Mangaldas & Co.
“Warehousing is a key contributor to the growth of the logistics sector in India and drives demand for real estate assets. The above initiative will further increase the demand in the logistics sector, leading to growth of employment opportunities and infrastructure development.”
Sajjan Jindal, Chairman and MD, JSW Group
“This budget provides more money in the hands of the middle class which will help boost consumption. A change in tax slabs is a welcome step. The government has maintained its thrust on capex though the spend of Rs 11.2 trillion is lower than a spending of around 13 trillion that I was hoping for, based on the past trend. But still, capex spend is at a robust level and will give a boost to the core sectors. The boost to MSMEs, by increasing investment and turnover limits and expanding credit guarantees, is a very important step towards increasing the contribution of manufacturing sector in our economy. Creation of a 3-year pipeline for PPP projects and making the PM Gati Shakti data available for private sectors are important steps that will help the industry plan and execute large projects.”
Brij Bhushan Agarwal, Vice Chairman and Managing Director, Shyam Metalics
“As Budget 2025 plans revolve around national growth and getting new opportunities, it brings new initiatives like the National Manufacturing Mission while greatly focusing on the Public-Private Partnerships (PPP). Similarly, it aims to strengthen the manufacturing section of India, thus improving policies with the help of governance systems, making sure ‘Make in India’ remains a priority. Public-Private Partnership on the other hand aims to use the expertise and spending of the private sector in society’s benefit by quickening the construction of major projects like roads, bridges and urban development areas.
This plan will not only attract investment and increase the demand for steel which plays an imperative role in infrastructure development, but will also increase the industrial activity in the region. In order to attain the set future vision, the Steel sector needs to evolve towards safer and more advanced methods of production. Increased infrastructure will directly allow the steel sector to increase its production output. These changes will enhance the economy of India, along with making the country more competitive on an international scale.”
Kuldeep Bhan, Group President, Global Metallurgy Business, Neterwala Group
“The Union Budget 2025 lays a strong foundation for India’s manufacturing growth with the announcement of the National Manufacturing Mission. By prioritising key areas such as ease of doing business, a future-ready workforce, empowerment of large companies and MSMEs, technology access, and product quality, this initiative will accelerate India’s journey toward becoming a global manufacturing hub. The government’s commitment to strengthening domestic manufacturing capacities and integrating Indian industries with global supply chains is a welcome step that will enhance the country’s competitiveness.
At Neterwala Group, we appreciate this visionary approach and look forward to leveraging these policy reforms to drive innovation, scale operations, enhance our skilled workforce, and contribute to India’s economic progress. Strengthening the ‘Make in India’ movement will not only generate employment but also position India as a key player in high-value, quality manufacturing on a global scale. This budget fuels optimism for a resilient and self-reliant manufacturing ecosystem, and we are excited to be part of this transformative journey.”
Pratik Agarwal, Managing Director, Sterlite Power and Chairman, Serentica Renewables
“The budget’s focus on deregulating nuclear power and encouraging indigenous small modular reactors (SMRs) is a big step in the right direction. With enough efforts in research and development (R&D), India can strive for global leadership in nuclear power capital goods. While there is continued focus on domestic manufacturing of generation and storage equipment, there is new-found mention of high-voltage transmission equipment. Given that there are global deficits in this product category, focusing on this sub-segment is a very sound move. India can strive to displace its neighbours and become a global champion in high-voltage transmission equipment. Last, the focus on distribution reforms and intrastate transmission is extremely welcome. India’s power sector is doing quite well when it comes to generation, and inter-state transmission. It’s the last mile transmission and distribution that needs the most attention.”
Anmol Singh Jaggi, Chairman and Managing Director, Gensol Engineering Limited
“The National Manufacturing Mission is a transformative initiative that will create a more agile and competitive ecosystem for businesses. This mission is set to rapidly scale India’s domestic capabilities in solar PV cells, EV batteries, electrolySers, and grid-scale batteries. Gensol Group, being actively engaged across these sectors, is fully committed to contributing to India’s vision of Aatmanirbhar Bharat. We welcome the government’s budget, which prioritises these critical pillars of India’s long-term sustainability and global leadership in clean energy. Clean tech manufacturing thrives on policy certainty and strategic support, and this Mission provides both, backed by a robust execution and monitoring framework.”
Vineet Mittal, Chairman, Avaada Group
“As we reflect on the union budget 2025, I am reminded of Modi Ji’s vision of a self-reliant and
empowered India. This budget is more than a financial plan. It is a bold, transformative blueprint that embodies the spirit of Viksit Bharat, integrating infrastructure, manufacturing, and sustainability to propel India into a new era of growth and leadership. The government’s Rs 1.5 trillion in long-term, interest-free PPP-based infrastructure investment and the Rs 1 trillion Urban Challenge Fund are key pillars in modernizing our cities and strengthening India’s economic backbone. With investments in urban mobility, smart utilities, and green logistics, this budget aims to build resilient cities and enhance the quality of life for millions of citizens. In manufacturing, sector-specific incentives and the development of global manufacturing clusters will position India as a global leader in renewable energy components, wind turbines, batteries, and green hydrogen. The National Manufacturing Mission for MSMEs will drive innovation, fostering sustainable local industries while contributing to India’s export competitiveness.
The power sector reforms are equally transformative, with a focus on inter-state efficiency, innovative energy storage, and renewable energy expansion. The Nuclear Energy Mission, targeting 100 GW through indigenous SMRs, marks a historic shift toward long-term energy security and decarbonisation. I am particularly encouraged by the government’s commitment to green financing and carbon markets, which will help channel private investment into climate-resilient and clean energy projects. The National Green Hydrogen Roadmap will further establish India as a global leader in clean technologies and decarbonisation. Additionally, the NABFID credit enhancement facility will provide renewable and infrastructure companies greater access to bond markets, unlocking long-term, sustainable financing options.”
Amit Paithankar, Whole-time Director and CEO, Waaree Energies Limited
“The union budget 2025 has strengthened India’s pledge to clean energy self-reliance by prioritising domestic manufacturing, backward integration, skilling, and R&D. The announcement of the National Manufacturing Mission, along with enhanced PLI schemes and tariff rationalisation for critical minerals will support the rapid growth of the entire renewable energy ecosystem. The inclusion of lithium-ion battery manufacturing incentives and duty exemptions on key raw materials like cobalt and lithium will accelerate India’s emergence as a global hub for energy storage solutions, furthering the EV and solar industries. The focus on clean-tech is heartening, as it reinforces the long-term relevance of renewable energy in India’s economic and environmental future. Additionally, the establishment of the National CoE in skilling, coupled with the PM Research Fellowship and industry-driven initiatives, will empower a wider segment of India’s youth with industry-relevant expertise. The five engines of growth outlined in the budget are well-thought-out, ensuring inclusive and progressive development. Ultimately, it is the people of India who emerge as the biggest beneficiaries of today’s announcements. With a strong push towards ‘Make in India’ evolving into ‘Make for India, Make for the World,’ these policy measures will drive capacity expansion, fortify supply chains, and position India as a global leader in clean energy manufacturing.”
Ratul Puri, Chairman, Hindustan Power
“We applaud the union budget’s progressive measures aimed at accelerating India’s energy transition and achieving net-zero emissions by 2070. The focus on creating a ‘Make in India’ ecosystem in clean tech manufacturing including solar PV cells, electrolysers for green hydrogen production, and grid-scale batteries will enhance renewable energy integration and grid stability, while incentives for electricity distribution reforms promise to improve discom efficiency and reduce losses. The ambitious target of 100 GW of nuclear energy by 2047, supported by PPPs, highlights the commitment to diversifying India’s energy mix and accelerating the energy transition. Additionally, mining sector reforms, including the sharing of best practices and the institution of a State Mining Index, will ensure sustainable resource utilisation. The three-year pipeline for PPP projects will fast-forward India’s infrastructure development, ensuring long-term sustainability while driving innovation. The revision of income tax slabs is a progressive step that will encourage higher savings and increased consumer spending, stimulating economic growth. These initiatives mark a significant step towards a cleaner, more resilient, and sustainable future, and we are excited to play a role in this transformation.”
Deepak Sharma, Zone President- Greater India and MD and CEO, Schneider Electric 
“The union budget 2025 marks a pivotal moment for India, laying the foundation for a truly ‘Viksit Bharat.’ The National Manufacturing Mission, focused on cleantech and ‘Make in India for the World,’ holds immense potential to transform our manufacturing landscape. The budget also recognises the critical role of agriculture in India’s growth story. Initiatives like the PM Dhandhanya Krishi Yojana, benefiting an impressive 17 million farmers, alongside increased Kisan Credit Card limits and investments in vital agricultural infrastructure, demonstrate a strong commitment to this sector. Recognizing that agriculture significantly contributes to our GDP and employs over 40 per cent of our workforce, these measures are crucial for ensuring food security, improving farmer livelihoods, and driving rural prosperity. The government’s commitment to infrastructure is evident, emphasising outcome-driven projects and the Urban Challenge Fund addressing critical needs like airport connectivity and clean water access. I particularly applaud the focus on modernising the power grid and scaling renewables through robust PPP models. This is crucial for a sustainable energy future.
Skill development is paramount for India to thrive in the Fourth Industrial Revolution. The establishment of national CoE will empower our workforce with the skills needed for the future economy. At Schneider Electric, we are excited by these developments. We will leverage our expertise in digitalisation, automation, and sustainability to support India’s journey. We will collaborate with the government and industry to accelerate the adoption of clean energy solutions, enhance grid resilience, and build a truly sustainable and inclusive future. Through our brand, Lauritz Knudsen Electrical and Automation, we are excited to proliferate technological advancements within the agriculture sector and make the best use of the initiatives announced today.”