Innovation & Growth in Focus: Women Finance Leaders React to Union Budget 2025

By: WE Staff

The much-awaited Union Budget 2025, has been presented by Union Finance Minister Nirmala Sitharaman on February 1. The overarching theme of this year’s budget is to promote economic growth and social welfare across India. Key highlights of the budget included various income tax reforms, agri-cultural initiatives, policy changes for healthcare and education, enhanced credit for farmers, infrastructure development, and support for MSMEs & startups.

One of the most welcomed announcements was the introduction of the new tax regime that aims to give a sigh of relief to the mighty Indian middle class. The Budget mentions 'No Income Tax Up to Rs 12 Lakh' per annum which is expected to benefit the middle class significantly. Addressing this move, Radhika Gupta, MD & CEO, Edelweiss MF notes "This budget boldly addresses the need of the hour: putting money into the hands of the middle class through meaningful tax reliefs. This will energize consumption and growth at a critical time for the Indian economy."

With a focus on supporting Indian women, FM Sitharaman announced a new initiative to support women's entrepreneurship, targeting 5 lakh SC/ST women. The scheme will provide term loans of up to Rs 2 crore over five years, building on the success of Stand-Up India, a 2016 initiative.

To understand the pulse of the industry better WER brings to you the thoughts of key women leaders from the field of finance & investment on the Union Budget 2025

Here are Key Women Leaders who have shared their reactions to Women Entrepreneurs Review Magazine on the new initiatives and women’s welfare presented at Union Budget 2025.

Padmaja Ruparel, Co-founder, IAN Group on the ₹10,000 crore for the new startup Fund of Funds

"With over 1.5 lakh startups approved by DPIIT and the renewed focus of the government on innovation, India's startup ecosystem is all set to expand further. The Budget 2025 announcement of an additional ₹10,000 crore Fund of Funds is revolutionary and reaffirms the government's continued support for startups. The Fund, which builds on the FFS scheme launched in 2016 will reduce reliance on foreign investments with essential capital up to the seed, growth stage. This would be in compliance with the Startup India action plan and will bring about a lot of domestic funding and innovation along with making India a global leader in deeptech and entrepreneurship."

Madhu Lunawat, Managing Director, The Wealth Company (Formerly Known as Pantomath Capital Management) A Pantomath Group Company

“Start-ups are at the heart of India’s growth story, driving innovation, job creation, and global competitiveness. With a thriving entrepreneurial ecosystem, India is well-positioned to lead the next wave of economic transformation. At The Wealth Company, we recognize that access to capital is critical for start-up success. The Fund of Funds for Start-ups and the Alternate Investment Fund (AIF) have already attracted commitments exceeding ₹91,000 crore, backed by the government’s ₹10,000 crore contribution. To further fuel innovation, a new Fund of Funds with an expanded scope and an additional ₹10,000 crore will be launched, providing start-ups with greater access to growth capital. Our vision aligns with Viksit Bharat 2047, targeting 8% annual growth, increased capital expenditure of ₹11.1 lakh crore, and a strong push for infrastructure and manufacturing. Tax reforms, including potential relief for the middle class and revisions in tax slabs, will create a more favorable business environment. With a firm commitment to Atmanirbhar Bharat, we are fostering resilience, investment, and entrepreneurship to build a globally competitive start-up ecosystem, particularly with our Bharat Value Fund Series 2 and Series 3 Fund, a CAT II AIF that has raised more than 3500CR in the last six months.”

Dilshad Billimoria, Founder & Financial Planner, Dilzer Consultants

The Union Budget of 2025 stands out as a demand-driven initiative, with a clear focus on investing in the economy, people, and industries. For the first time in many years, we are witnessing a very positive outcome for the middle class. A key highlight is the introduction of the ₹12 lakh income exemption in the new tax regime, which will benefit taxpayers but could also shrink the overall tax base, especially considering the average per capita income of ₹2.5 lakh.

With a capital expenditure allocation of ₹31 lakh crore, including ₹10 lakh crore dedicated to CapEx, we expect increased capital availability for firms, which should translate to more attractive interest rates. If inflation continues to ease, this will likely lead to rate cuts, further boosting investment in the economy.

The budget is particularly consumer-driven, benefiting sectors like MSMEs and agriculture, with a special focus on Bihar. While there was a brief negative reaction from the markets on Saturday, we remain optimistic that the reduction in taxes will lead to higher investments and savings, especially among HNIs, thereby creating a multiplier effect for the broader economy.

On the fiscal deficit, the target is set at 4.8% of GDP for 2025, with a reduction to 4.4% in 2026. The government has also provided an opportunity for those who have not filed tax returns to do so, though the achievement of the revenue targets will depend on actual tax collections in the coming months.

Additionally, the budget brings positive changes for individuals, including an increase in the TDS exemption limit for rental income from ₹2.4 lakhs to ₹6 lakhs and an increase in the TCS on remittances under the Liberalized Remittance Scheme (LRS) from ₹7 lakhs to ₹10 lakhs. These reforms signal a strong focus on improving the ease of doing business and ensuring greater tax compliance.

Overall, we think the 2025 Union Budget is a step in the right direction, with investments in key sectors, fiscal prudence, and support for the middle class that will drive sustainable growth in the years to come.

Priyanka Bhatia, Co-founder, Women on Wealth

“The Union Budget 2025 shows a strong commitment to women's financial empowerment and entrepreneurship. Dedicated initiatives for financial empowerment of women entrepreneurs, and expanded access to credit through Mudra loans and subsidies for women-led businesses will help bridge financial gaps. The government's focus on simplifying loan processes and offering lower interest rates is a welcome step in making business ownership more accessible. Additionally, the new scheme providing term loans of up to ₹2 crore for 5 lakh first-time entrepreneurs, including women, will be a major boost for financial independence and business growth. These measures reinforce a progressive vision for women’s economic participation and long-term financial inclusion.”