More cash, more customers: Marketers bet big on Budget 2025

India’s middle class is set for a consumption surge as the Union Budget 2025 increases the tax rebate threshold, putting more disposable income in taxpayers’ hands. By reducing the tax burden on salaried individuals, the government aims to boost spending power, driving demand across key sectors like automobiles, real estate, consumer goods, and travel.

This is definitely good news for brands. Industry experts anticipate a positive ripple effect on the economy, with businesses gearing up to capitalise on the rising purchasing power.

Finance Minister Nirmala Sitharaman proposed to revise tax rate structures as follows. 0 to 4 lakh rupees nil, 4 to 8 lakh rupees 5%, 8 to 12 lakh rupees 10%, 12 to 16 lakh rupees 15%, 16 to 20 lakh rupees 20%, 20 to 24 lakh rupees 25% and above 24 lakh rupees 30%.

By freeing an estimated Rs 85,000–1.19 lakh crore in disposable income across 30% of urban households, the policy directly amplifies purchasing power in discretionary sectors like consumer electronics, premium FMCG products, and lifestyle services.

Here’s how marketers are reacting to the development:

Dhiresh Bansal, Chief Financial Officer, Meesho 

 We welcome the Union Budget 2025-26 for its strong push for MSME growth, digital commerce, and boosting consumption for mass Indians. Increasing the investment and turnover limits for MSME classification is a game-changer that will drive scale, innovation, and job creation. The big boost for sectors such as toys, footwear and many others will lead to improved domestic capabilities in manufacturing and exports. We also wholeheartedly welcome the paradigm shift in income tax, which will allow many more mass Indians to fulfil their aspirations. We at Meesho, remain committed to empowering millions of small entrepreneurs and look forward to the long-term impact of these reforms."

Anish Shah, Group CEO & MD, Mahindra Group

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.

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 emphasizes long-term growth through substantial infrastructure investments and a strong focus on innovation.

Lastly, the theme of inclusive development, with a strong emphasis on MSMEs, agriculture, and skilling, aims to create a resilient ecosystem that will drive economic growth and help achieve the Viksit Bharat Goals by 2047.”

Balfour Manuel, Managing Director, Blue Dart

As India marches toward becoming a USD 5 trillion economy, the logistics sector stands at the forefront of enabling this transformation. The Union Budget 2025-26 presents an opportunity to enhance the sector’s contribution by prioritizing investments in freight train speeds, expanding Dedicated Freight Corridors, and improving multimodal infrastructure for industries such as mining, steel, and cement. With the National Logistics Policy and PM GatiShakti driving progress, we look forward to robust capital expenditure on physical and digital infrastructure, along with technology integration and sustainability measures, to strengthen logistics efficiency and elevate India's industrial competitiveness on a global scale.

Rajiv Dubey, VP & Head - Media, Dabur India ltd

With the increase in disposable income for consumers, we anticipate significant growth in advertising spends by brands this fiscal year. Sectors such as FMCG, consumer electronics, and e-commerce are expected to lead this surge. The recent budget has introduced significant tax relief for the middle class and increased spending on infrastructure and healthcare, which will further boost consumer confidence and spending. For instance, the expansion of healthcare facilities and the focus on rural development are likely to drive demand for FMCG products in these areas. Additionally, the emphasis on digital transformation and technology will encourage consumer electronics and e-commerce brands to invest heavily in advertising to capture the growing online market."

Vinod Francis, GM-Chief Financial Officer, South Indian Bank

Amidst a global environment of rising uncertainty, the Union Budget by the honourable finance minister is reassuring that our economy is stable and aligned towards long term progress. 

Policymakers prudently unfurled a number of reforms aimed at increasing disposable income and reviving consumption in the Indian economy. Their prudence in balancing macro stability must be lauded, as they have stuck to the fiscal prudence roadmap by setting a fiscal deficit target of 4.4% for FY26 while also spurring consumption. 

Moreover, the government allocating a Capex of Rs. 11.21 lakh crores for FY26 in the most productive sectors of the economy would likely have a domino effect and accelerate capital formation in the economy. 

We second the government’s recognition of MSMEs being the second engine driving India’s manufacturing growth. The decision of allotting Rs. 1.5 lakh crore would further spur capacity expansion, creating a ripple effect that would have a positive effect on growth, aiding India’s development.

Rajat Agrawal, CEO, Barista Coffee

Budget for the year 2025 entails more income in the hands of the middle class with exemption of income in the hands of the salaries class till INR 12 lacs, this will also benefit individuals at higher earnings. Higher income will support the agenda on spending and will support the middle class on their allocation of funds beyond their daily needs and could benefit the retail industry at large with more money in the hands of the middle class. Further lowering down of taxes for other than salaried class will also support spending.

A deep-rooted plan to bring more investments on building infrastructure and connectivity through dedicated spends on new airports and routes, will further create an opportunity for large reach and mobility which will further support retail businesses with increase in better inter-city connectivity and tourism.

However, from a retail industry standpoint there were no direct benefits being passed on even in this year's budget.”

Anurag Bhamidipaty, Co-founder, Roastea

The Budget 2025 lays a strong foundation for startups, FMCG, D2C, and the retail sector by providing innovation and boosting consumption. The ₹10,000 crore Fund of Funds will provide much-needed capital, encouraging homegrown brands to scale. Tax relief for salaried individuals is set to enhance consumer spending, benefiting FMCG and retail businesses. With India’s strong economic growth with 10.1% of GDP and control on fiscal deficit at 4.4% together with rising domestic demand, this budget fuels both entrepreneurship and market expansion. It’s a significant step towards a self-sustaining and consumption-driven economy. The scheme will incorporate lessons from the successful Stand-Up India scheme. It is a radical step to a self-sustainable and consumption-based economy.

Sunil Agarwal, Co-founder and Chairman of Joy Personal Care

 We welcome the government’s budget for its strategic focus on economic growth through increased consumer spending power. The proposed income tax reforms are poised to enhance disposable income, driving demand across the FMCG sector, including beauty and personal care. 

By prioritizing inclusive development—supporting disadvantaged groups, youth, farmers, and women—the budget strengthens purchasing power, further stimulating market demand. Additionally, initiatives aimed at boosting farm productivity, manufacturing, and exports—such as a national mission for high-yield crops and subsidized credit for farmers—will fortify supply chains and optimize input costs, ensuring long-term sectoral growth.

Taxation reforms, including potential corporate tax reductions, and streamlined tax procedures, will foster a more competitive and business-friendly landscape. Furthermore, investments in digital infrastructure, skill development, and MSME promotion will serve as key enablers of sustained consumption and economic expansion. The introduction of the National Manufacturing Mission further reinforces this vision by incentivizing manufacturing activities, enhancing production capabilities, and promoting innovation, thereby improving the global competitiveness of Indian manufacturing—a significant advantage for home-grown brands.

Shivam Puri, MD & CEO, Cipla Health Limited.

 The increase in the tax-free income limit is a significant relief for the middle class, putting more money in the hands of consumers. This boost is expected to drive overall consumption, benefiting essential categories, including health and wellness products.

It’s also encouraging to see the government’s focus on nutrition through targeted programs. As awareness of health and well-being grows, higher incomes will naturally lead to increased demand for wellness products.