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Below the Union Budget 2025: Boosting MSMEs, Tax Relief & Capital Markets for a`Viksit Bharat`By Mr. Mahavir Lunawat, Group Founder & Managing Director, Pantomath Financial Services Group

"The Union Budget 2025-26 paves the way for a stronger, more self-reliant India, driving economic transformation across key sectors to propel India towards ‘Viksit Bharat’.

With 7.5 crore people employed under MSME, contributing 36% to manufacturing and 45% to exports, MSMEs are the backbone of India’s economy. Initiatives such as enhanced credit access through credit guarantee schemes and dedicated funds for early-stage investors will encourage innovation and competitiveness, evolving the sector further. The introduction of the National Manufacturing Mission, covering small, medium, and large industries, aims to drive the ‘Make in India’ initiative.

Budget 2025 also introduced the much-awaited tax relief for the Indian middle class by completely exempting individuals earning up to Rs 12 lakh from taxation under the new tax regime. The restructuring of tax slabs has resulted in a simpler and more progressive framework, ensuring that people have greater disposable income that will eventually lead to strong investment for better future. By streamlining the tax system and making it more accessible, these changes are expected to boost savings and increase participation in primary and secondary markets, leading to better capital formation overall.

2024 saw a record-breaking capital raise through initial public offerings (IPOs), 2025 is expected to be even more exciting. India has emerged as one of the world's major IPO hubs for domestic and international companies alike. The momentum anticipated in the next two years in the capital market is thrice of what it has achieved in the last 5 years. There have been 851 initial public offerings (IPOs) in the last 5 years, and estimates suggest that there will be over 1,000 IPOs in the next two years. Market confidence is continuing to rise as India's market capitalization has topped US$5 trillion, ranking it fourth in the world after the US, China (including Hong Kong), and Japan.

The additional liquidity in the hands of the middle class via tax savings will be a strong pillar to drive the capital market forward.

Overall, the budget 2025 stimulates investment, innovation, and industrial growth that will lead to a strong economic growth this year. India is well-positioned to accelerate its transition in becoming one of the world's most powerful economies by streamlining taxes, enhancing MSMEs, and boosting capital markets."

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