As India prepares for the Union Budget 2025, leaders from the startup and manufacturing sectors are calling for targeted policies to strengthen innovation, boost domestic production, and drive global competitiveness. With the government’s emphasis on economic self-reliance, these sectors see the budget as an opportunity to address critical challenges and unlock their full potential.
Startups, often seen as the backbone of modern economies, are looking for measures to sustain their rapid growth and enhance their global standing. Sushanto Mitra, CEO, Lead Angels, said that there is need for investor-friendly policies, suggesting that the government should allow investors to write off startup investments over five years, as is practiced in developed countries.
“This could also extend to employees exercising stock options and investments in SEBI-approved venture funds,” Mitra said, adding that such steps would encourage further investments in India’s burgeoning startup ecosystem.
Mitra also stressed the importance of reducing compliance burdens for DIPP-registered startups during their formative years, enabling founders to focus on building their businesses rather than navigating complex regulations.
In addition, he called for the incorporation of entrepreneurship into school and undergraduate curriculums to nurture young talent and foster a culture of innovation from an early age.
“In critical sectors like defence and healthcare, where innovation is essential, targeted tax deferments can help startups develop capabilities vital for national security and societal challenges like an ageing population,” he noted.
On the other hand, India’s manufacturing and electronics sectors are poised for a transformative phase, buoyed by initiatives like the Production-Linked Incentive (PLI) schemes and the ‘Make in India’ campaign. Abhishek Malik, Executive Director, Calcom Vision, pointed out that increased incentives for R&D, stronger support for green technologies, and policies that encourage domestic manufacturing could significantly accelerate the sector’s growth.
“By fostering innovation and boosting domestic production, the government can drive the next phase of growth for India’s manufacturing sector,” he said.
Malik said that there is the need to invest in cutting-edge technologies such as IoT-enabled smart lighting, energy-efficient appliances, and solar solutions, which are becoming increasingly important as consumers prioritise sustainability and efficiency. He believes that targeted government policies can encourage the development of these advanced solutions while supporting local innovation.
The electronics industry, meanwhile, is emerging as a major contributor to India’s economy, with domestic production projected to reach $300 billion by 2026. According to Amit Khatri, Co-Founder, Noise, initiatives like Make in India, Digital India, and Skill India have laid the groundwork for this growth. To sustain this momentum, Khatri called for reducing import dependencies and duties, enhancing component manufacturing infrastructure, and fostering global partnerships.
“These steps are essential to strengthen India’s competitiveness in the global value chain,” he said.
Khatri also underscored the importance of strategic investments in R&D to spur innovation and cater to evolving consumer needs. Highlighting the role of smart wearable technology, he said, “Innovations like our NCMC-enabled and Tap and Pay smartwatches exemplify how technology can transform sectors such as finance and insurance, accelerating the shift to a digital-first economy.”
He also emphasised the need for government support for initiatives like NPCI to strengthen the digital payments ecosystem, catalysing greater adoption and integration across industries.
“Measures to counter inflation and encourage discretionary spending will also be key to sustaining consumer demand,” Khatri added.
Both the startup and manufacturing sectors see Budget 2025 as an opportunity to foster a more supportive environment for innovation, ease regulatory hurdles, and encourage investments in future-ready technologies. With targeted measures, these industries believe India can cement its position as a global leader in entrepreneurship, manufacturing, and digital transformation.
