India Inc welcomes Budget's booster dose for consumption

With the budgetary push, consumption in mass categories will also receive a boost, driving overall consumption (both mass and premium).

India Inc has hailed Finance Minister Nirmala Sitharaman’s decision to give tax break to middle class, saying the consumption boost due to the cut will also encourage private sector capital expenditure.

“We commend the 2025 Union Budget for its continued support of robust consumption growth through changes in the tax structure, effectively placing more disposable income in the hands of the Indian consumer. This will encourage private sector capex to move in a positive direction,” said Anish Shah, Group CEO & MD, Mahindra Group.

The waiver on personal income-tax for income up to Rs 12 lakh is expected to ease the financial burden on the salaried class, soften the impact of rising prices, thereby driving consumption. The move should provide a major fillip to sectors such as consumer durables, apparels, fast-moving consumer goods (FMCG), jewellery, and automobiles.

“The Budget has hit the perfect note, providing great relief to the middle class by making incomes up to Rs 12 lakh per annum completely tax-free. This is the biggest section of the middle class. It has also significantly reduced the tax burden for incomes up to Rs 24 lakh,” Vedanta chairman Anil Agarwal said.

SpiceJet chairman and managing director Ajay Singh commented that this is a forward-looking, middle class-friendly budget that promises to boost spending, stimulate development, and set the stage for India’s growth in the coming years.

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India Inc leaders also gave thumbs up to the government’s continued focus on its Make In India agenda.

“The theme of "Make in India for the world" remains a key focus in this Budget, with efforts to reduce India's manufacturing costs poised to significantly enhance the country's global competitiveness. In addition to providing an immediate stimulus for demand and growth, the Budget emphasises long-term growth through substantial infrastructure investments and a strong focus on innovation,” said Mahindra’s Shah.

According to Baba Kalyani, Chairman & MD, Bharat Forge Ltd, focussed attention to 'Make in India' in HiTech and labour intensive industries will attract investments, while revised Classification and Exports push to help Indian MSMEs go global. "Big boost to salaried middle-class will accelerate economic growth," he added.

Tata Motors executive director Girish Wagh added that the government’s continued allocation of over Rs 11 lakh crore in capital expenditure, alongside targeted initiatives to boost consumption, support Make in India, and promote agricultural growth, is set to create a more dynamic economic environment.

“The removal of basic customs duties on key materials for battery manufacturing is a strategic move to boost domestic EV production, foster a sustainable ecosystem, and drive India's transition to a greener economy. As infrastructure projects gain momentum and consumption picks up, improved roads, connectivity, and logistics will undoubtedly drive increased demand for freight and commercial transport solutions driven by both domestic demand and broader economic recovery,” he added.

Aggarwal said various measures announced in the Budget for mining, agriculture and electronics sectors can all help increase domestic production, reduce imports and create millions of good jobs in India.

Tata Capital managing director and CEO Rajiv Sabharwal said the tax relief provided in the Budget, coupled with other measures announced for the real estate sector, will help stimulate demand for housing.

“The extension of tax relief is poised to boost consumer confidence, while initiatives like SWAMIH Fund 2 aim to address housing challenges, offering relief to middle-class homebuyers managing EMIs and rent. These measures will stimulate demand, unlock growth in the real estate industry, and help meet the housing needs of a growing population,” he said.