Budget Boost: Retail Industry Sees Spending Surge

New Delhi, Jul 23 (PTI) Budget proposals such as duty cuts, higher exemption limits in personal income tax and increased standard deductions will leave more money in the hands of people, leading to increased spending, said retail industry players.

This will stimulate consumption growth, thereby boosting the overall economy, they added.

IKEA India Country CFO Murali Iyer said the budget demonstrated commitment to supporting MSMEs and women via access to finance, infrastructure and skilling support.

"Innovative schemes, such as internship opportunities for youth and the development of Digital Public Infrastructure reflect the government's forward-thinking approach. “Significant investments in infrastructure and tax relief measures, such as an increased standard deduction for salaried employees, will increase disposable income for consumers, providing a boost to retail," he said.

Retailers Association of India (RAI) CEO Kumar Rajagopalan appreciated the government's focus on empowering the middle class and rural population.

"Initiatives such as monetary support for farmers, higher exemption limits in personal income tax, and increased standard deductions will provide higher disposable income, leading to increased spending. We believe this will stimulate consumption growth, thereby boosting the overall economy," he said.

Moreover, the reduction of duty on gold, precious metals, and mobile phones will also provide a significant boost to these sectors, particularly during the festive season.

The budget's emphasis on MSMEs and startups, including enabling more lending and abolishing angel tax, is a positive step towards realizing their potential.

Rahul Mehta, Chief Mentor, the Clothing Manufacturers Association of India (CMAI) said additional measures announced to support bank credits to MSMEs and easing of foreign investment will also benefit the textile and apparel industry.

"The import relaxation in some of the important raw materials, trims and accessories required for garment manufacturers will also help the garment manufacturers to be more competitive, especially in the Export markets," he said.

Prerna Kalra, Co-founder and CEO Daalchini Technologies said budget's emphasis on job creation through EPFO contribution incentives promises to generate opportunities for 50 lakh youth, including a substantial number of women.

"This is a pivotal moment, opening doors for greater female participation and advancement in the workforce," said Kalra.