Union budget – Mixed reactions from food, allied industries

The Union budget 2025 presented by finance minister Nirmala Sitharaman has evoked mixed reactions from the food, FMCG and other industries.

Dev Pratap, co-founder, Univision Foods, says while the dry fruit industry welcomed the government’s focus on agriculture and infrastructure development, there were no specific measures that directly addressed the challenges faced by dry fruit producers and exporters.

“The allocation of funds for cold storage facilities and logistics improvement is expected to indirectly benefit the industry by reducing post-harvest losses and ensuring better quality produce. However, the industry had hoped for reduced import duties on essential commodities, which remain a concern. The budget’s emphasis on promoting organic farming and sustainable practices could encourage dry fruit growers to adopt eco-friendly methods, potentially enhancing export opportunities.”

Overall, while the budget provides a supportive environment for the agricultural sector as a whole, the dry fruit industry awaits more targeted policies to address its unique needs and boost its global competitiveness, Pratap said.

According to Manjusha Singh, CEO of Siegwerk India, the Union Budget 2025 presents a promising vision for India’s manufacturing sector, reinforcing the nation’s commitment to self-reliance through the National Manufacturing Mission.

“The government’s continued momentum towards food processing, with the establishment of a National Institute of Food Technology, Entrepreneurship and Management in Bihar, will promote efficiency and innovation in the sector. We perceive this development as an opportunity to contribute through cutting-edge, safe, and environmentally friendly packaging ink solutions for specific requirements of changing times in the FMCG sector. With an additional momentum towards India becoming a global toy hub, it is in tune with a larger purpose of localized development of manufacturing that opens an opportunity for packaging and product innovation.”

“Overall, these actions make India’s manufacturing ecosystem supportive of growth, innovation, and sustainability. Siegwerk continues to stand with the sector with its expertise, and packaging and printing solutions will resonate with India’s changing industrial scenario,” she said.

Simranjeet Singh, director, CYK Hospitality, said the Union Budget 2025 marks the beginning of substantial financial reforms that will reshape the F&B consultancy and hospitality sectors. “The expansion of credit guarantee coverage will provide better financial support for startups and small enterprises, reducing risks while paving the way for innovation. The strengthening of the role played by financial institutions will provide much-needed support toward funding early ventures to scale up quickly in the hospitality and food businesses.”

Singh said the establishment of a dedicated startup credit ecosystem is a game changer, particularly for first-time women entrepreneurs and businesses from SC and backward communities, creating a larger scope of participation in the industry. “In addition, simplifying access to credit could be a boon in itself, particularly with schemes such as the ₹2 crore loan initiative for women entrepreneurs that would encourage newer ventures and diversify and promote inclusivity in the F&B space.”

“It is in this context that the sector expects accelerated growth, decked in furtherance of enhancement of supply chains, going into the promotion of regional cuisines, and the development of the agriculture sector, all of which pave the way.”