Budget 2025-26: Empowering consumption, unleashing growth potential

The Union Budget for 2025-26 presented by Finance Minister Nirmala Sitharaman has been a strategic masterstroke aimed at revitalizing India's economy.

- Sunil Kanoria

The first step in this direction is the exemption of income tax for individuals earning up to ₹12 lakh annually, which is a bold and much-needed move. This will significantly boost disposable income for the middle class, reigniting domestic consumption, and providing a shot in the arm for the economy. However, the next frontier for economic transformation lies in empowering high-income earners—those making over ₹1 crore annually— to fuel the next phase of growth.

Tax Relief for the Middle Class - A Stimulus for Consumption

One of the most impactful announcements in the budget was the increase in the income tax exemption limit for individuals earning up to ₹12 lakh. This tax relief will effectively nullify income tax for those at this level and reduce the burden on higher-income groups as well. The tax slab rejig will create more disposable income in the hands of the middle class, providing the much-needed boost to consumption which had shown signs of slowing in recent months. This is a critical step in reviving India's consumption engine, making this budget a solid foundation for sustained economic growth.

The Next Target: Unleashing the Potential of ₹1 Crore Plus Earners