The Union Budget 2025-26 presents both opportunities and challenges that will shape India’s economic trajectory. As an equity investor in MSME companies, I welcome the government’s renewed focus on this sector. The revised MSME classification—raising investment limits by 2.5 times and doubling turnover thresholds—will significantly improve credit access and support mechanisms, enabling small businesses to drive economic growth.
However, the budget’s heavy reliance on disinvestment and privatisation raises concerns. While privatisation may boost government revenues, it risks job losses and could disrupt long-term growth. Employment stability is crucial, and economic expansion must not come at the cost of job security. Similarly, raising the income tax exemption limit to ₹12 lakh provides relief but lacks alignment with broader growth strategies.
Despite these concerns, the National Manufacturing Mission is a commendable step toward strengthening India’s “Make in India” vision. Prioritising ease of doing business, workforce development, MSME engagement, technological access, and quality production will foster a dynamic manufacturing ecosystem.
The proposed tax reforms promote inclusivity by reducing compliance burdens. Lowering TDS thresholds and extending tax return timelines benefit small businesses, startups, and those with variable incomes. Simplifying tax laws and encouraging voluntary compliance will create a more transparent and equitable system.
This budget underscores the MSME sector’s pivotal role in India’s growth story, but its success hinges on balanced economic policies that ensure both business expansion and job creation. While the road ahead holds promise, its execution will determine whether India achieves its economic aspirations. As an investor, I remain optimistic yet cautious about the journey forward.” – Mr. Tarun Singh, Founder and Managing Director of Highbrow Securities
