Union Budget 2025: Praised for tax relief and exports push, but gaps remain in plant-based food policy, says GoodDot founder Abhishek Sinha

The Union Budget 2025 has been largely welcomed by industry leaders for its focus on fiscal stability, tax reforms, and sectoral growth initiatives. Abhishek Sinha, Founder of GoodDot, praised the government’s efforts in strengthening the economy while highlighting key areas where more attention is needed, particularly in the plant-based food sector.

“The Union Budget 2025 takes a balanced approach, focusing on both stability and progress. The lower fiscal deficit, tax relief, and support for key industries will strengthen the economy. The increase in income tax exemption limits means more money in people’s hands, boosting consumption and driving business growth—a win for both consumers and industries,” Sinha said. He also acknowledged the positive impact of programs like the Export Promotion Mission and incentives for high-yielding crops, which will enhance India’s global competitiveness. Additionally, the budget’s emphasis on healthcare and infrastructure was seen as a critical step for long-term development.

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However, Sinha expressed disappointment over the lack of focus on the plant-based food sector, which he believes is a missed opportunity given India’s potential to become a global leader in sustainable food production. “While the budget does well to support agriculture, food processing—especially plant-based foods—needs more attention. India has the potential to be a global leader in plant-based proteins, but for that, we need policy support,” he emphasized.

Sinha suggested that the National Mission for High-Yielding Crops should extend its focus to include high-protein plant ingredients like soy, pea, and millet, which are essential for the growing plant-based food industry. This aligns with the government’s Mission LiFE initiative, aimed at promoting sustainable lifestyles and addressing environmental challenges.

Referring to the Economic Survey 2025, Sinha highlighted that food waste contributes 8% of global greenhouse gas emissions, and a shift towards plant-based diets could significantly reduce individual carbon footprints—by up to 2.1 tons annually for a vegan diet and 1.5 tons for vegetarians. He stressed that India, as a leader in sustainability efforts, should incentivize plant-based food alternatives to meet its climate goals.

To support this vision, Sinha called for GST rationalization on plant-based foods and their inclusion in government incentive schemes. “Making plant-based foods more affordable through GST rationalization and including them in incentive schemes would be a game-changer. Household consumption accounts for two-thirds of global emissions, and nudging people towards sustainable dietary choices is an idea whose time has come,” he noted.

Sinha concluded by stating that India is uniquely positioned to lead the world in sustainable, ethical food choices, which can create jobs, boost exports, and contribute to a healthier planet. While the budget provides a solid foundation for growth across sectors, targeted support for the plant-based food industry could propel India to the forefront of the global sustainability movement.