The Union Budget 2025 holds immense promise for India’s vibrant startup ecosystem, as industry leaders anticipate transformative reforms to drive innovation, growth, and sustainability. From easing regulatory compliance to enhancing access to funding, the demands span diverse sectors like technology, food processing, and digital marketing. Simplified GST norms, subsidies for sustainable practices, and incentives for emerging technologies like AI and green energy are seen as key enablers for startups. Moreover, boosting infrastructure and promoting Tier 2 and Tier 3 cities as hubs for innovation are critical for fostering inclusivity. Such bold measures can position India as a global leader in entrepreneurship, sustainability, and economic resilience.
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According to Mr. Gaurav Bhagat, Founder and Managing Director of Consortium Gifts

As we approach the 2025 Budget, startups are looking for bold measures to support growth and innovation. With India projected to have over 120 unicorns by the end of 2025, there’s an urgent need for policy reforms that ease regulatory compliance, promote access to capital, and foster a robust startup ecosystem. Reducing the angel tax threshold and simplifying GST norms for early-stage businesses could go a long way in fueling entrepreneurial aspirations.
Additionally, the startup sector would benefit from enhanced government-backed funding programs, such as expanding the scope of SIDBI and Startup India schemes. Incentives for adopting emerging technologies like AI, blockchain, and green energy solutions could also catalyze long-term growth.
Having worked closely with startups for over three decades, I believe that addressing these challenges will not only empower budding entrepreneurs but also position India as a global hub for innovation and economic resilience in the years ahead.
According to Mr. Abhishek Sinha, Founder, GoodDot

As someone deeply connected to the food processing and plant-based protein sectors, I believe the recent wildfires in LA and other extreme climate events are stark reminders of the urgent need to prioritize sustainability in every industry. The Union Budget presents a vital opportunity to promote environmentally sustainable sectors like plant-based foods, which significantly reduce the environmental footprint compared to traditional animal agriculture.
One crucial step would be to rationalize GST on plant-based foods, aligning it with the lower rates on traditional meat products. This would make sustainable, health-conscious options more accessible and encourage consumer adoption. Promoting exports of plant-based products by incentivizing value-added processing of agricultural produce is another important move. This could position India as a global leader in sustainable food exports while boosting rural livelihoods.
A dedicated Production-Linked Incentive (PLI) scheme for plant-based proteins would be a transformative policy, attracting investments, fostering R&D, and creating jobs in this fast-growing sector. Additionally, the food processing industry requires enhanced infrastructure, especially in rural areas, to reduce food wastage and add value to our vast agricultural output.
Startups and MSMEs in these sectors also need simplified compliance processes and better access to affordable credit to thrive and innovate. With bold measures, this Budget can pave the way for a more sustainable, resilient future, addressing urgent climate challenges while positioning India as a leader in plant-based innovation and food tech.
According to Mr. Sushanto Mitra, CEO, Lead Angels

Startups are the driving force of modern economies, contributing significantly to employment and innovation. To further accelerate this growth, the government should consider allowing investors to write off startup investments over five years, as practiced in developed countries. This could also extend to employees exercising stock options and investments in SEBI-approved venture funds.
Additionally, easing compliance requirements for DIPP-registered startups during their initial years would enable founders to focus on building their businesses rather than navigating complex regulations. Incorporating entrepreneurship into school and undergraduate curriculums can nurture an entrepreneurial spirit in young minds, fostering a culture of innovation from an early age.
In sectors like defence and healthcare, where innovation is critical, targeted tax deferments can help startups build capabilities essential for national security and addressing societal challenges like an ageing population. These measures will create a robust startup ecosystem and position India as a global leader in entrepreneurship
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According to Ms. Nidhi Singh, Co-Founder, Samosa Singh

Being a F&B brand dedicated to prioritizing quality and innovation, we look forward to the Union Budget 2025 reforms that may vicariously fuel the growth of startups pertaining to the former. Swiftly approved policies that would potentially simplify taxation, and promote sustainable business practices can act as promoters for escalating startups like ours. F&B sector being in the focus, stimuli for local sourcing, reduced taxes on essential supplies, facilitated support for cold-chain infrastructure, can result in significantly impacting operational efficiency and product quality in the constructive manner. We hope that implementation of this budget would make provisions for a far more resilient and thriving startup ecosystem, and be the breath of prerequisite fresh air.
According to Mr. Prady, CEO and Co-Founder, NP Digital India

The digital marketing industry in India faces key challenges, including the rising cost of advertising due to inflation, limited access to advanced AI and data analytics tools for smaller businesses, and the need for a stronger regulatory framework around data privacy. Advertisers are looking for government support in the form of incentives for digital adoption, increased funding for technology upskilling, and policies that promote a fair and transparent advertising ecosystem.
From the Union Budget 2025-26, we expect three key measures: First, increased investment in digital infrastructure to ensure widespread connectivity and access to emerging technologies. Second, incentives for adopting AI-driven solutions, which are crucial for data-driven decision-making in marketing. Third, tax breaks or subsidies for upskilling initiatives aimed at enhancing the capabilities of marketing professionals. These steps are essential to empower businesses, improve campaign effectiveness, and bridge the talent gap in this fast-evolving sector.
The government should focus on fostering a startup-friendly ecosystem, enhancing MSME support, and incentivizing innovation in technology. A robust digital economy will not only drive economic growth but also position India as a global leader in technology and marketing services.
According to Mr. Vaibhava Singh, Community Manager, Magicnation

As a community manager with over five years of experience in the smartphone industry, I understand the unique challenges and opportunities that startups face. With the Union Budget 2025 on the horizon, the startup ecosystem eagerly anticipates policies that can drive innovation and growth. We hope for simplified tax structures and extended tax holidays to ease financial burdens. Enhanced access to funding, through initiatives like simplified loan processes and venture capital incentives, could significantly boost entrepreneurial ventures. Moreover, supportive regulatory frameworks are essential for fostering a thriving startup environment.
Infrastructure development, including smartphone technology hubs and co-working spaces, can provide the much-needed support for budding entrepreneurs. Lastly, tax incentives for R&D in smartphone technologies and GST exemptions for educational products will encourage startups to invest in innovation. With these measures, India can emerge as a global leader in the startup ecosystem, driving economic growth and technological advancement.
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According to Mr. Simranjeet Singh, Director, CYK Hospitalities

The upcoming Union Budget 2025 is quite expected to have reforms for innovation. For start-ups and food and beverage (F&B) sectors, there is also great hope for simplified taxation, namely GST rate cuts on small eateries and essentials-those will ease financial stress. A very strong push has been made towards subsidies on packaging that preserve the environment so that food becomes scarce, aligning it to the perceptions of global sustainability. Increased budgetary support to food processing facilities might as well drive off multiple rural jobs and boost exports. Start-ups are also demanding continued tax exemptions and the removal of angel taxes so as to attract more funding. Investments into Tier 2 and Tier 3 cities will benefit from policy environments that promote digital ecosystems to stimulate innovation, especially in agri-tech, health-tech and green-tech.
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