Union Budget 2025 Reactions | 'Classification criteria for MSMEs have been significantly enhanced,' says Prashant Kumar, MD & CEO of YES BANK

'The Budget can also be lauded for taking up the challenge of enhancing the ease of doing business along with establishing a more stable taxation regime, that is likely to enhance business decision making, boost private sector investment and hence foster long-term growth,' he said.

Finance Minister Nirmala Sitharaman tabled the much anticipated Union Budget for FY 2025-26 on February 1, which also marked a record 8th Budget presentation for the 65-year-old. In a major relief to the middle class, Sitharaman announced that there would not be any tax liability on income upto Rs 12 lakh for salaried persons under the new tax regime and raised the basic exemption from Rs 2.5 lakh to Rs 4 lakh.

Speaking on this front, Prashant Kumar, Managing Director & CEO of YES BANK, said, "The Union Budget remains growth oriented – not only attempting to correct for the cyclical growth concerns but also setting up the platform for a sustained long-term journey for the economy, keeping the focus strongly on the objectives of Viksit Bharat. Importantly, sectors that are relatively more labour intensive in nature have received a boost within the budget – namely agriculture, MSME, footwear and leather, toys, food processing."

"The focus of the budget has been on ways to improve productivity across various sectors and to provide adequate scope for the MSMEs to expand by enhancing the credit guarantee scheme for them. Importantly, the classification criteria for the MSMEs have also been significantly enhanced. The Budget can also be lauded for taking up the challenge of enhancing the ease of doing business along with establishing a more stable taxation regime, that is likely to enhance business decision making, boost private sector investment and hence foster long-term growth."

"On the other hand, reduction in the income taxes across the tax paying population should enhance consumption power of the middle class and boost deposit mobilization of the banking sector. Amid all these positive reforms momentum, the FM has enabled an increase in the capital expenditures yet continuing with fiscal consolidation," Kumar added.

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Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.