Union Budget 2025-26 Receives Positive Response From Industry Leaders

Guwahati: Industry leaders from the Northeast have largely welcomed the Union Budget 2025-2026 presented by Finance Minister Nirmala Sitharaman in Parliament today. The budget focused on economic expansion, tax relief, and sectoral growth initiatives other than agriculture, MSMEs, manufacturing, exports and infrastructure while introducing measures to enhance regional connectivity, promote digital transformation and streamline taxation. 

In response to the Union Budget 2025-2026, the President of the Bharat Chamber of Commerce, N.G. Khaitan, dubbed it a 'good budget' that effectively addresses the needs of the underprivileged, youth, and women. He highlighted the much-awaited tax exemptions to boost consumption and simplify compliance structures to ease taxpayer burdens. While he appreciated the removal of seven tariff rates and the increase in FDI limits to enhance production and investment, Khaitan expressed concerns over the lack of regulatory reforms for the manufacturing sector and vocational training initiatives, which he believes are crucial for workforce development.

On the other hand, The Federation of Industry and Commerce of North Eastern Region (FINER) President Bajrang Lohia termed the budget as "balanced," noting that the fiscal deficit has been reduced to 4.4 per cent from 4.8 per cent. While FINER's ex-President R.S. Joshi appreciated the budget’s focus on 'Viksit Bharat 2047' and its commitment to elevating GDP growth to 8 per cent, welcoming the tax relief measures, including income tax exemption up to Rs. 12.75 lakh and infrastructure allocations worth Rs 10 lakh crore. 

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Sarat Kumar Jain, Chairman of the Indian Chamber of Commerce (ICC) Assam and Meghalaya Committee, commended the establishment of a new Urea plant in Namrup, Assam, with an annual capacity of 12.7 lakh tonnes, which will likely boost agricultural productivity. 

Mahesh Saharia, Chairman of the North East Regional Council of ICC, praised the budget’s provisions for healthcare, tourism, exports, and taxation. He welcomed the exemption of 36 life-saving drugs from Basic Customs Duty (BCD), improved financial aid for MSMEs, and initiatives to boost global trade. However, he raised concerns about China’s growing dominance in AI and called for greater investment in digital infrastructure.

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Pradeep Bagla, Chairman of CII North East Council and MD of Amrit Cement Ltd, expressed optimism about the budget’s long-term vision. He praised the establishment of the Urea Plant in Assam and the Udaan scheme expansion which now includes helipads and hilly states. Bagla emphasised that the reduction in personal income tax will increase disposable income, thereby boosting consumer spending and overall economic growth. He also noted the budget’s strategic focus on healthcare, agri-exports, and tourism as key drivers for the Northeast’s development.

The Tea Association of India acknowledged that while there were no direct benefits for the tea industry, several policy decisions in the budget could positively impact the sector. Key initiatives such as Prime Minister Dhan-Dhaanya Krishi Yojana and the National Mission on High Yielding Seeds will likely enhance agricultural productivity, benefiting tea plantations. Export potential is expected to rise with Bharat TradeNet and enhanced global supply chain integration. The proposal for a High-Level Committee on Regulatory Reforms is anticipated to simplify policies to improve the business environment for tea producers.

Overall, the Union Budget 2025-26 has been well-received by industry leaders in the Northeast, who view it as a growth-oriented and inclusive financial roadmap. While praising its fiscal discipline, taxation reliefs, and sectoral focus, experts have called for additional regulatory reforms, greater investments in vocational training, and enhanced social security measures. With key initiatives set to impact agriculture, MSMEs, and regional connectivity, stakeholders remain hopeful that the budget will drive sustainable economic progress for the Northeast and beyond.