Introduction:

Every country makes a special financial plan every year called a “budget” to know how to spend and earn money. This is known as the Union Budget in India. The 2025-26 Union Budget, presented in February 2025, was focused on the development of a more robust India. It was presented as the blueprint of “Viksit Bharat. The government tried to help everyone, from farmers and workers to entrepreneurs. In this article, let’s see how the 2025 Union Budget will impact the Indian business world.

Why do countries make budgets? 

The country creates a financial report like this to keep the economy running smoothly. Without one, things could be a mess: too much spending might lead to high prices or even inflation, not enough might slow the country’s development. The budget is like setting priorities, building infrastructure, and improving tech. The Union Budget announcements for 2025-26 were presented on February 1st, 2025 by the finance minister Nirmala Sitharaman under the theme “Viksit Bharat,” where Bharat refers to Modern India. 

How might the Tata Group be affected?

The Tata Group consists of over 100 operating companies in cars, steel, power, and IT. The firm thrives in the manufacturing and energy sectors. This budget’s infrastructure drive is expected to create more orders for Tata Steel as roads and bridges get built. Tata Power (energy) will gain from nuclear and renewable energy incentives, potentially winning government contracts for clean projects.

In autos, EV support aligns with Tata Motors’ electric lineup, making batteries and charging affordable to roll out. Job programs help fill factories with skilled workers, while TCS benefits from pushing digital training. Consumer tax relief could boost sales of Tata products. Higher government borrowing might raise interest rates, adding pressure to many companies, but Tata’s wide reach and capability allow it to capitalize on growth, while increasing revenues and jobs.

Impact on the Reliance Industries

Reliance is a leader in oil, telecom, retail, and green tech. The firm has major stakes in these industries. Greater purchasing power in the hands of customers with tax reduction means higher Reliance Retail and JioMart sales. Improved infrastructure will speed supply chains, particularly in rural areas. 

The government’s energy security push also includes a drive to boost use of renewable energy and the development of fuel sources, mirroring Reliance’s new business bets and energy investments. Energy reforms reduce import dependence, saving on fuel for refining, while green incentives back Reliance’s solar and hydrogen plans. Reliance’s size positions it to lead in sustainable shifts, boosting overall profits.

Impact on Infosys and the IT or tech sector

Infosys is a major IT service & consulting company that offers its software and services worldwide. AI funding and skilling initiatives introduced in the union budget offer R&D grants and a larger talent pool, reducing training needs. It also emphasized the creation of AI centers of Excellence, aiming for more talent in the IT and tech sector.  

The continued government support for the digital economy and innovation drives demand in the IT services and solutions. The union budget acts as a push for Infosys to innovate in AI and analytics, while strengthening its global edge.

How will it impact startups?

Startups are the backbone of the country’s economy. They turn bold ideas into businesses while creating more employment within the nation. A tax holiday was announced in the Union Budget incorporated up to April 2030. Allowing all eligible startups to receive a 100% income tax deduction on profits for the three consecutive years within the first ten years of operation. 

This will fuel startup growth, helping them save cash for expansion. For sectors like fintech and edtech, AI incentives open doors to global markets. Simplified rules allow smaller firms to work easily. This could attract investors, create jobs, and grow the startup ecosystem.

Challenges and risks

Every plan has its own flaws. The union budget also has its own hurdles that could trip up businesses, such as high spending leading to inflation, raising costs for raw materials, and hurting company profits. Big projects often face implementation delays, which could be a source of frustration for corporations that are eagerly awaiting funding. 

Infosys’ IT exports may suffer from the possible tariffs by countries such as the United States. Leading to reducing orders and prices or layoffs instead of government-proposed wage concessions. Short-term supply and price increases may result from transitioning to a greener power source. If import gets expensive, it could affect Reliance’s refining and Tata’s manufacturing.

Highlights of the 2025 Union Budget

The budget records the total expenditure, income, the key focus areas, and various implementations in a well-balanced manner. In general, the budget mentioned short-term relief with long-term goals of self-reliance and job creation. Among the following points –

• Tax Relief for Middle Class: Adjusted income tax slabs with income up to Rs 12 lakh per year being tax-free, letting families keep more money for daily needs and boosting consumer spending.
• Job Creation: Incentives for companies to hire young workers, including one month’s wage for first-timers in certain sectors. This could create millions of opportunities and reduce unemployment, especially in manufacturing and services.
• Infrastructure Boost: Rs 11.21 lakh crore funds for roads, railways, ports, and similar projects to improve connectivity, trade, and economic speed.
• Tech and AI Support: Extra funding for AI missions, digital skilling programs to build India’s tech edge, and train a skilled workforce. A new AI center of excellence in education and nuclear energy reforms to cut import dependence. 
• Green Energy Focus: Incentives for electric vehicles, solar power, and sustainable farming methods to cut pollution and promote sustainable growth.
• Farmer and Rural Aid: Better irrigation, crop export help, and market access to raise farm incomes and strengthen food security.
• MSME and Startup Perks: Easier loans, digital tools for small businesses, plus tax holidays and innovation funds for new ventures to spark entrepreneurship.

Conclusion:

The 2025 Union Budget is the government’s strategy to fuel growth. This will benefit giants like Tata, Reliance via energy and retail, Infosys through tech boosts, and startups with vital support. While there are risks like inflation, the emphasis on jobs, innovation, and self-reliance is good for the country’s economy. It paves the way for India towards a developed and sustainable future. The article mentioned how the 2025 union budget might affect the startup and business world across the country.

FAQs:

What is the 2025 Union Budget?

The 2025 Union Budget is the government’s financial plan that outlines how it will earn and spend money for the year.

Why is this budget important for big companies like Tata and Reliance?

Government tax rules, investment policies, and incentives can directly affect their profits and future plans.

How does the budget impact Infosys and the IT sector?

Any changes in technology spending, digital policies, or tax on software exports can affect IT companies like Infosys.

What are the key budget highlights for startups?

Startups may get benefits such as tax holidays, funding support, or relaxed rules to boost innovation and growth.

Did the 2025 Budget reduce corporate tax rates?

The article explains whether the government cut or maintained current corporate tax rates for businesses.

How will the budget affect foreign investments in Indian companies?

It discusses whether the new policies make India more attractive for global investors.

Are there new policies for green or sustainable businesses?

Yes, the budget may include incentives for eco-friendly projects and companies investing in clean energy.

What does this budget mean for job creation?

If industries like manufacturing, IT, or startups grow, more employment opportunities may be created.

How are middle-class taxpayers affected compared to big companies?

The article covers both — how the budget supports citizens and how it impacts large corporations.

What is the overall takeaway from the 2025 Union Budget?

It shows whether the budget focuses more on growth, digital innovation, or economic stability.