Consumption Budget 2025: How much success will Finance Minister Nirmala Sitharaman's efforts to create demand in the market by increasing consumption bring?

Urban Middle Class Strategy: In the budget, income up to Rs 12 lakh of taxpayers has been made tax free, so that the remaining money can be spent with both hands for daily needs and demand in the market increases.

Budget For Consumer Demand: Finance Minister Nirmala Sitharaman has tried a lot to push India's faltering economy out of the slowdown and on the highway of growth. Income up to Rs 12 lakh of people has been made tax-free so that the remaining money can be spent with both hands for daily needs and demand in the market increases. To increase the income of rural India with a population of 80 crore, it has been announced to spend Rs 1 lakh 71 thousand crore on agriculture and its allied sector, so that the rural consumer market can grow due to increased income in the village and this can give a booster dose to the market and then the economy.

How ready is the urban middle class?

The Indian government has taken measures at its level to create demand in the market by increasing consumption, but how ready is the urban middle class, which is the engine of growth, to reach the destination of this goal? It may also happen that the government has given income tax exemption on income up to 12 lakhs to increase consumption and the urban middle class starts spending it on buying assets. In such a situation, it will be difficult for the consumer market to grow as expected.

FMCG, retail, and lifestyle have special hopes

The entire focus of the government's exercise is on boosting the disposable income of the people. That is, people can spend more and more on things that are bought repeatedly. For this reason, the FMCG, retail, and lifestyle sectors have a lot of hope from this move of the Indian government. Companies hope that this will accelerate their sales growth, but this hope can also turn into disappointment if there is a surge in asset purchases. The strategists of companies are also afraid of this. You can soon convey this apprehension to the government and request an initiative towards its solution.

Disclaimer: This content has been sourced and edited from abplive. While we have made modifications for clarity and presentation.