Union Budget 2025: Personal tax reforms to boost consumption and benefit retail, says Malabar Group chairman MP Ahammed

The Union Budget 2025 has been recognized for its focus on revitalizing consumption and strengthening key sectors of the economy. MP Ahammed, chairman of Malabar Group, praised the government’s approach to boosting domestic demand through personal income tax reforms and policies aimed at enhancing consumer sentiment.

“The budget reflects the government’s continued focus on revitalizing consumption, strengthening domestic manufacturing, and fostering job creation,” Ahammed stated. He emphasized that the budget’s fiscal measures are designed to stimulate urban consumption, particularly within the middle-income segment. “The budget has rightly focussed on offering fiscal impulse to boost consumption. With personal income tax reform, it will free up disposable income to boost urban consumption,” he noted.

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The increase in disposable income is expected to have a direct impact on sectors such as retail and jewellery. Ahammed highlighted that higher spending power among middle-class consumers will drive demand growth and support economic expansion. “It will boost the spending power of the middle-income segment and enhance consumer sentiment—both critical drivers of economic growth,” he explained.

For the retail and jewellery sector, the rise in consumption is anticipated to translate into stronger demand, fostering business growth and employment opportunities. “For the retail and jewellery sector, a rise in consumption directly translates into stronger demand, fuelling expansion and employment generation,” Ahammed added.

The Union Budget 2025’s focus on tax relief, consumption-driven growth, and domestic manufacturing is expected to create a positive economic environment, benefiting both businesses and consumers across sectors.