Budget 2025-26: Assocham hails 'bold' move to boost consumption

New Delhi, Feb 1 (PTI) Finance Minister Nirmala Sitharaman has presented a “bold” budget which will boost consumption, particularly by the middle class.

'The finance minister has placed her confidence in the middle class for leading the consumption-led growth. At the same time, there is a clear focus on unleashing the potential of the MSMEs, Startups and exports," Assocham President Sanjay Nayar said on the the Union Budget for 2025-26.

Union Finance Minister Nirmala Sitharaman tabled the Union Budget in the Lok Sabha on Saturday.

It is a 'bold' budget to boost consumption particularly from the vibrant middle-class families, Nayar said.

He said pick up in consumption demand would, in turn, encourage investment as well in the medium term while several employment-oriented sectors such as tourism, textile, handicrafts, footwear and toys have been given an immediate impetus for take-off.

Ajay Singh, the Past President of Assocham said the Budget is "middle class-friendly" and will boost public spending setting stage for India's growth in coming years.

With the launch of a modified UDAN scheme that will introduce 120 new destinations and bring 4 crore additional passengers into the fold over the next decade, he said the aviation landscape in India is set for a transformative shift.

This initiative will not only make air travel more accessible to remote regions but will also drive economic growth and tourism, further empowering local economies, said Singh, who is also the CMD of airline SpiceJet.

On tax-related announcements, Nayar said, leaving the annual income of individuals up to Rs 12 lakh a year tax -free and rationalising TDS/TCS thresholds and slabs would not only provide ease of living for common citizens but also provide an ease of doing business for small and micro-entrepreneurs.

Government's trust in taxpayers is seen enhanced as the focus of the Budget proposals and the forthcoming new Income Tax Bill is on voluntary tax compliance with ease of procedures, he said.

The finance minister has also addressed the issue of customs duty inversion by rationalising the rates. She has also placed priorities on Make in India by value-added manufacturing in sectors such as electronics by lowering customs on essential raw material and critical minerals, Nayar said.