The Union Budget 2025-26 has been hailed as a transformative step towards boosting domestic consumption and strengthening industrial growth. Gautam Singhania, Chairman & Managing Director of Raymond Group, praised the government’s decision to raise the income tax exemption limit to ₹12 lakh, highlighting its potential to stimulate household spending and energize key sectors like retail and real estate.
“The decision to exempt income tax up to ₹12 lakh is a game-changing reform that boosts India’s middle class by increasing disposable income,” Singhania stated. With higher discretionary spending, the middle class, which now drives nearly 60% of domestic consumption, is expected to play a pivotal role in fueling economic growth. “This is expected to drive household spending—an essential growth engine for sectors like retail and real estate,” he added.
Singhania emphasized how consumption-led growth will strengthen market dynamics and stimulate demand across a range of sectors. “Higher discretionary spending signals economic vitality, fueling consumption-led growth and strengthening market dynamics,” he said. The retail sector, particularly in aspirational and premium products, is poised to benefit from this rise in purchasing power.
Beyond tax reforms, Singhania acknowledged the budget’s targeted measures to fortify manufacturing, MSMEs, and domestic consumption. “The Union Budget 2025-26 builds on this reform with targeted measures to fortify manufacturing, MSMEs, and domestic consumption,” he noted. The government’s focus on enhanced credit access, sector-specific incentives for textiles and apparel, and streamlined compliance frameworks are set to boost industrial output and competitiveness.
Singhania highlighted the synergy between consumer spending and industrial growth, emphasizing how the budget creates a comprehensive strategy for sustained economic expansion. “With the middle class now driving nearly 60% of domestic consumption, rising purchasing power is likely to accelerate demand for aspirational and premium products. This holistic strategy positions the economy for sustained expansion by creating a strong synergy between consumer spending, industrial growth, and workforce empowerment,” he concluded.
The Union Budget 2025-26’s balanced focus on tax relief, manufacturing incentives, and credit accessibility is expected to drive both short-term demand and long-term economic resilience, positioning India for robust and sustained growth.
