Emerging sectors like quick-commerce, AI, electric vehicles, and data centers are also looking to the budget for regulatory simplification, financial incentives, and a business-friendly environment
Deepak Chand Thakur, co-founder and CEO of NPST:
Sagar Kaushik, Associate Director, Growth, Propelld
Rohit Taneja, Founder & CEO, Decentro
FinTech BizNews Service
Mumbai, January 28: As we approach the Union Budget for FY 2025-26, here are a few insights from Fintech and payment technology sector experts:
Deepak Chand Thakur, co-founder and CEO of NPST:
“Favourable Macroeconomic Impact An increase in discretionary spending can have a beneficial impact on UPI transaction volumes. Any relief to stimulate personal spending capacity in the upcoming Union Budget FY 2025-26 will be welcomed by the fintech industry.
Introduction of MDR Regime for UPI Payments Today, one in three digital payments is a UPI transaction. With growing investment in payments infrastructure, fraud management, compliance, and security — and the associated cost of processing transactions — participating entities need to monetize UPI. A rethinking of MDR for UPI transactions above Rs 2,000 can create a sustainable revenue model, benefiting all stakeholders in the UPI ecosystem.
Democratizing Data through AI Policy: The data landscape offers potential for shared intelligence solutions. AI-driven collaboration could strengthen fraud prevention network-wide, particularly benefiting smaller players who need government support for intelligence sharing.”
(NPST is a leading digital banking and payments technology provider listed on the NSE SME exchange.)
Subho Moulik, Founder & CEO, Appreciate:
“The recent slowdown in GDP growth has made Budget 2025 one of the most eagerly awaited in recent years. To drive economic recovery, foundational demand stimulation measures should take center stage. The government’s focus on record-high capital expenditure is expected to continue, with significant allocations likely to boost industries such as manufacturing, electronics, energy, and healthcare. Emerging sectors like quick-commerce, AI, electric vehicles, and data centers are also looking to the budget for regulatory simplification, financial incentives, and a business-friendly environment.
For the Indian middle class, the budget holds particular significance, especially because CPI inflation (at nearly 6%) has grown faster than income in the last four years. (Income in the engineering, retail, IT and financial services sectors have grown at anything between 2 and 4% CAGR between 2019 and 2023, as per FICCI, IMF and Reuters report).
Tax reliefs—long overdue—are crucial to increasing disposable income and stimulating consumption. This, in turn, is essential for healthy GDP growth, as household consumption drives 60% of India’s GDP. Coupled with targeted welfare policies and reforms, these measures should provide the much-needed push to revive domestic demand while curbing household debt. The stakes are high, and all eyes are on Budget 2025 to strike the right balance between growth-oriented investments and relief for the common citizen.”
(Appreciate is a SEBI and IFSCA registered fintech company headquartered in Mumbai, India. The platform specializes in low cost, fractional investing in the global stock market, providing a user-friendly interface and comprehensive financial tools for investors.)
Sagar Kaushik, Associate Director, Growth, Propelld:
“The private education sector is crucial to India’s educational landscape, fostering innovation and skill development. However, government support for education fee-financing fintechs is urgently needed. Policy reforms, lower lending rates from public sector banks (PSBs), and co-lending models can reduce non-performing assets (NPAs) in higher education financing. Collaborations between PSBs and fintech platforms can streamline traditional lending processes, while fintech companies enhance accessibility and efficiency through technology-driven solutions.”
(Propelld is a Bangalore-based FinTech startup specializing in education lending. The brand’s main vision is to democratize access to education and drive up India’s gross enrolment ratio (GER) by removing financial barriers to the right education with customized financial products.)
Sagar Agarwal, Co-founder & Managing Director of Beams Fintech Fund
"As we approach the Union Budget 2025, we, at Beams, are optimistic about the government's commitment to fostering a powerful fintech ecosystem. We anticipate significant strides in addressing the substantial credit gap for MSMEs, which are the backbone of our economy. We are looking forward to potential expansions of credit guarantee schemes and targeted subsidies in housing finance to unlock growth opportunities. Furthermore, we expect the budget to introduce favorable tax incentives for PE investments and provide a clear framework for digital banking licenses. These measures would greatly boost investor confidence, while also accelerating the rate of digital financial inclusion across India. We are particularly keen on seeing initiatives that support green finance and sustainable investments, aligning with global ESG trends. Last but not least, we sincerely hope that the budget will streamline regulatory processes and enhance liquidity in the PE market, potentially through encouraging secondary markets or public listings of PE funds. Such forward-thinking policies would undoubtedly position India as a prime destination for fintech investments and innovation on the global stage."
(Beams Fintech Fund is India’s leading Growth Stage Fintech Fund)
Dr. Apoorva Ranjan Sharma, Co-Founder & MD of Venture Catalysts
"The announcement of the Union Budget is a crucial event each year, for it sets the trajectory of every industry. For investors like us, budget announcements are especially important for identifying the kind of ventures we could help grow. India’s startup ecosystem has gained great momentum so far, and I believe that the government should take it ahead in the Union Budget 2025. The abolition of angel tax in the previous budget was a game-changer, and it consequently boosted early-stage investments. Now, we need to focus on sustaining and accelerating this growth. For starters, a simplified tax regime for startups could be of great help, particularly for enterprises in Tier 2 and 3 cities. These emerging hubs of innovation need more support to compete globally. A reduction in compliance burdens and extended tax holidays could provide the necessary impetus for these startups to scale rapidly. We should also prioritize emerging technologies. With AI revolutionizing industries, the budget should allocate substantial funds for R&D in this sector. This could position India as a global leader in AI innovation. Apart from this, improving access to credit for MSMEs and startups is extremely important. Expanding schemes like the Credit Guarantee Scheme for Startups could help entrepreneurs scale operations without the burden of high-interest loans. By focusing on these areas, the Union Budget 2025 can further strengthen India's position as a startup nation. We talk about becoming a $35 trillion economy in the next 25 years, but this dream will only come true by driving innovation and supporting budding businesses across the country.”
(Venture Catalysts is a company focused on the creation of start-ups based on technological and scientific projects.)
Ankur Maheshwari, CFO, Freo:
"Digitalization has revolutionized banking, making it more convenient for customers and advancing financial inclusion, with India now accounting for nearly 46% of the world’s digital transactions. While the financial services sector holds a promising outlook, achieving the vision of Viksit Bharat will require exponential growth—20 times the current scale. This ambitious goal demands a focus on real-time innovation, robust data privacy policies, and resilience against global challenges. We anticipate the Union Budget 2025 will support these efforts by enhancing synergies among banks, NBFCs, fintechs, and digital infrastructure. Budget allocations for R&D in technologies like AI and blockchain, along with initiatives for rural outreach and MSME credit support, will be pivotal. By fostering collaboration, technological advancements, and consumer-centric policies, the financial services sector can significantly contribute to Digital India and the nation's economic growth."
(Freo is India’s leading digital finance app)
Govind Sankaranarayanan, Co-founder & COO of Ecofy:
"A persistent theme across recent budgets has been the need for job creation. Incentives for labour intensive sectors such as food, garments and automotive components are required. New areas of employment generation such as the maintenance of electric vehicles and support for burgeoning rooftop solar ecosystems need budgets for vocational training of the youth. As a green lender, we think that the larger banking system needs to be encouraged to channelize funds to SMEs' looking to become resource efficient. The largest chunk of jobs gets created within the SME space and therefore the continuation of incentives to SMEs would be desirable through this year's budget incentives."
(Ecofy is India’s new Green NBFC)
Rohit Taneja, Founder & CEO, Decentro:
"As we approach the Union Budget 2025, there is immense potential to strengthen India’s fintech ecosystem by fostering innovation, compliance, and financial inclusion. India’s Digital Public Infrastructure, particularly the India Stack, has been instrumental in bridging gaps between urban and rural sectors. Expanding its capabilities in 2025—through tools like DigiLocker and ULI (Unified Lending Interface)—can unlock growth for underserved regions and drive innovation at scale.
In the UPI for B2B space, we see a massive opportunity to transform how businesses manage vendor payments, recurring transactions, and supplier settlements. Policies encouraging UPI Autopay adoption, higher transaction limits, and tax benefits for digital payments will accelerate digitization in sectors like SaaS, logistics, and retail. For cross-border payments, initiatives like Project Nexus can enable faster, cost-efficient transactions, while simplified forex regulations and support for multi-currency settlements will position India as a global leader in payment infrastructure.
With compliance and data protection taking center stage, the budget should incentivize AI-driven solutions to streamline regulatory processes, enhance fraud detection, and foster trust. The Data Protection Bill presents an opportunity to enable secure innovation while ensuring transparency in digital transactions. At Decentro, we’re building infrastructure that empowers businesses to scale seamlessly—from mobile-first DigiLocker workflows to UPI Autopay and multi-currency settlements. We look forward to a forward-thinking budget that drives trust, scalability, and innovation, keeping India at the forefront of the global fintech revolution.”
(Decentro is a full-stack banking and fintech infrastructure platform that is contributing towards building the future of fintech in India and Asia. Decentro powers more than 800 companies, including CRED, CashE, Ninjacart, MoneyTap, AU small finance bank, and many more, helping them optimise their digital infrastructure)
