As India prepares for the Union Budget 2025-26, industry leaders across sectors are voicing their expectations for policy reforms and fiscal measures that could propel the nation towards global economic leadership.
GCCs: Accelerating India’s Global Leadership
India’s Global Capability Center (GCC) sector has emerged as a powerhouse, with over 1,700 GCCs employing 1.9 million professionals and projected revenues exceeding $100 billion by 2030. However, industry leaders stress the need for further government support to sustain this growth.
“As India strengthens its position as a global hub for GCCs, targeted fiscal and policy measures could further accelerate the sector’s growth,” says Lalit Ahuja, CEO of ANSR. “Simplifying the company registration process specifically for GCCs would reduce setup timelines, enabling faster investments and operations. Extending tax incentives, such as a 15% concessional tax rate, would foster innovation and attract global organizations to establish and scale their operations in India.”
Ahuja further emphasizes the importance of raising the threshold for Safe Harbour Rules, which would create a level playing field for mid-sized GCCs driving the next wave of expansion. “A uniform, centralized GCC policy could enhance India’s appeal by streamlining compliance and creating a predictable environment for investors.”
Echoing this sentiment, Ashish Mishra, Head of Digital & Technology at General Mills India Center (GCC), highlights the role of technology in the Agri-Food industry. “Strategic investments in digital infrastructure, automation, and advanced analytics are crucial to addressing evolving consumer needs. Simplified compliance frameworks for tech-enabled solutions can empower businesses to introduce sustainable practices while enhancing transparency and trust.”
Mishra also stresses the necessity of a federal policy that complements state-level efforts in attracting GCCs to tier-2 towns. “A comprehensive approach, including investment in infrastructure, education, and training programs, will ensure India remains the preferred destination for high-value GCC operations.”
AI, Automation, and Manufacturing: Driving the Next Industrial Revolution
With India’s GDP nearing $4 trillion, the nation is poised to leverage AI and automation for industrial transformation. Satish Shukla, Co-founder of Addverb, underscores the need for supportive policies. “We hope the Union Budget 2025 includes initiatives to encourage the deployment of AI and automation across industries. Tax breaks, subsidies for technology-driven initiatives, and increased R&D investment can accelerate this transformation.”
He also calls for skill development programs in AI and automation to prepare the workforce for these advancements. “Focusing on infrastructure development, such as smart factories and AI-powered supply chains, will allow industries to scale more effectively.”
In the manufacturing sector, Shukla emphasizes the importance of robust policy initiatives. “Initiatives like ‘Make in India’ have greatly increased manufacturing investments and exports. We anticipate further programs to develop a highly trained workforce and support industrial automation. Increased investment and PLI schemes will bolster the industry’s overall growth, ensuring India’s leadership in the global industrial revolution.”
Logistics and Retail: Enabling Seamless Trade and Consumption
As manufacturing expands, the logistics sector is equally poised for growth. Nikhil Agarwal, President of CJ Darcl Logistics, highlights the role of policy initiatives in strengthening India’s global supply chain. “Maintaining competitiveness will require sustained support for R&D, innovation, and skill development, particularly in robotics and AI. Increased investment and policy support can accelerate the adoption of advanced logistics technologies.”
The retail industry, particularly in paints and construction, is also looking for supportive budget measures. Kuldip Raina, Director Sales and Marketing, Shalimar Paints, points out the role of infrastructure and housing in boosting paint demand. “Government schemes like PMAY (Grameen) and increased infrastructure spending will drive growth in decorative and industrial paints. Reducing import duties and offering tax benefits on key raw materials can ease cost pressures and improve production efficiency.”
Startups and Tech Innovation: India’s Path to a $5 Trillion Economy
India’s thriving startup ecosystem is another focal point. Advait Kumar, Founder of Boon, stresses the need for policy stability. “Specific policies supporting AI, IoT, and quantum computing can foster innovation and entrepreneurship. Public-private partnerships and increased R&D investment are crucial for sectors like watertech, agriculture, and healthcare.”
He also advocates for financial support through tax incentives, startup-focused loan programs, and venture capital investments. “The upcoming Budget presents an opportunity to position India as a leading startup hub, driving sustainable development and achieving the $5 trillion economy goal.”
Ganesh Sonawane, Founder and CEO of Frido, adds, “India’s startup ecosystem is a thriving hub of innovation, and we hope that the Union Budget 2025 reflects its potential. Startups, particularly those focusing on health-focused innovations, stand to benefit greatly from policies that streamline GST processes, introduce R&D tax incentives, and provide easier access to funding. These measures could ignite a wave of innovation, empowering manufacturers and startups to meet the increasing demand for wellness products. Encouraging startups to scale manufacturing for global markets will also be crucial in reinforcing the ‘Make in India for the World’ initiative. With the right support, entrepreneurs can position India as a global hub for wellness and ergonomic solutions, showcasing the country’s ingenuity and innovation on the world stage.”
The Road Ahead
As the Union Budget 2025-26 nears, industry leaders across GCCs, AI, manufacturing, logistics, retail, and startups are aligned in their vision—India must create a policy environment that fosters innovation, investment, and competitiveness. With the right fiscal measures and policy reforms, the nation is poised to solidify its position as a global economic powerhouse.
