New Delhi: The Union Budget takes a bold step toward spurring demand for consumer goods, addressing challenges the sector has faced over the past few years, said Mayank Shah, Vice President, Parle Products.
He said, “The consumer demand has largely been depressed in the recent past due to inflation and increasing costs of inputs, but with these changes, the hope is that there is an increase of purchasing power within the common man. Consequently, this will also create a demand for capital goods supporting industries further down the line.”
Shah highlighted that the budget's provision to create an effective tax-free income of Rs 12.75 lakh will significantly boost consumption by increasing disposable earnings, which is crucial for driving demand.
The capturing of rural demand via targeted agricultural investment across 100 regions, along with MSME aid assistance, will serve the dual purpose of creating additional employment and uplifted spending power, according to Shah.
This initiative, along with MSME aid, aims to create jobs and enhance spending power, helping to strengthen the rural economy. "The rural push will help uplift purchasing power and create new job opportunities, contributing to overall economic growth," he noted.
Some new job opportunities and utilisation of physical resources and economic activity are expected with the increased concentration on rural and urban infrastructural development, which includes the Urban Challenge Fund, he emphasised.
Shah concluded that the Union Budget 2025 takes a holistic approach, laying a foundation for long-term economic growth. By focusing on broad-based development, demand expansion, and sustainability, the budget is set to positively impact all sectors, fostering a recovery that will resonate across industries.bu