With the Union Budget 2025 set to be unveiled on February 1, the business and startup ecosystem is abuzz with anticipation. Key stakeholders across various sectors are hoping for reforms that can foster sustainable growth, encourage innovation, and improve the ease of doing business. Experts from diverse industries shared their views on what the upcoming budget could do to drive progress in their respective domains.
Sustainable Luxury and Eco-Conscious Consumption
As India positions itself as a global leader in sustainability, Ricky Vasandani, Co-founder and CEO of Solitario, believes that the Union Budget 2025 presents a golden opportunity to support businesses in the sustainable luxury sector. Specifically, he sees the potential for eco-conscious consumption, especially in markets like lab-grown diamonds, to be at the forefront of the country’s luxury ecosystem. He emphasizes that forward-thinking policies and simplified regulations will be key drivers for innovation.
“The Union Budget can encourage sustainable businesses, particularly in sectors like lab-grown diamonds, by creating a supportive environment for growth,” Vasandani explained. “With the right policies, we can foster a thriving ecosystem for luxury brands and position India as a leader in environmentally responsible luxury. This could mark the beginning of a new era of conscious consumerism.”
Empowering India’s Startups and Wellness Innovation
India’s startup ecosystem has gained international attention for its creativity and dynamism, and Ganesh Sonawane, Founder and CEO of Frido, believes the 2025 Union Budget should reflect this potential. India boasts the world’s third-largest startup ecosystem, with over 128,000 startups in April 2024, a significant leap from just 450 in 2016.
For startups, particularly those focusing on health innovations and wellness products, streamlining processes and providing access to funding can be pivotal for growth.
Sonawane emphasizes the need for R&D tax incentives and simplified GST procedures to foster innovation and scale up manufacturing for global markets. He noted, “By making it easier for health-focused startups to access funding and benefit from tax incentives, the Union Budget can spark a wave of innovation. Encouraging startups to scale up production for global markets will not only help the Make in India for the world initiative but also establish India as a global hub for wellness solutions.”
Streamlining GST for Beauty and Skincare
The beauty and skincare industry in India has seen significant growth, and the 2025 Union Budget could provide the necessary reforms to enhance its potential further. Luxury beauty in India, valued at $1 billion in 2024, is projected to grow to $1.6 billion by 2028 and $4 billion by 2035, with a robust CAGR of 14%, positioning it as one of the fastest-growing markets globally and in Asia.
Shrishti Yadav and Shubham Godara, Co-Founders at SCINQ Neurocosmetic, highlighted the need for simplification of GST processes to alleviate the complexities posed by multiple tax slabs.
“A more uniform and industry-friendly tax structure would ease operations, lower costs, and benefit both businesses and consumers,” Yadav and Godara noted. “We also believe the Union Budget should focus on supporting the retail and e-commerce sectors, enabling them to innovate and expand their reach. These steps will help the beauty and skincare industry grow and contribute to the overall economic progress.”
Prioritizing Sustainability in Education Infrastructure
Dhiraj Narang, Co-Founder at X&Y, an eco-friendly school furniture brand, views the 2025 Union Budget as an opportunity to drive investment in sustainable and accessible solutions within the education sector.
Narang emphasizes the importance of integrating sustainability into furniture manufacturing and school infrastructure, which can significantly improve both the environment and learning spaces.
“Eco-friendly materials like reclaimed wood and bamboo, along with energy-saving manufacturing processes, can build a greener future for the furniture industry,” Narang said. “Providing subsidies to manufacturers who adopt these green practices will encourage more companies to go sustainable. Additionally, incentivizing schools to incorporate sustainable designs, like solar-powered buildings and ergonomic furniture, can elevate the quality of education spaces while reducing environmental impact.”
Narang believes that the 2025 Union Budget can play a pivotal role in combining economic growth with environmental consciousness, making a lasting impact on both education infrastructure and the planet.
