By Mohit Malhotra
Finance Minister Nirmala Sitharaman’s Union Budget 2025-26 is a significant step towards enhancing the financial well-being and quality of life for millions of middle-class families. It was widely anticipated to stimulate economic growth and provide much-needed relief to the middle class, and the finance minister has certainly delivered on that front with measures aimed directly at boosting household consumption. The absence of any negative measures is also a big positive this year.
The significant tax relief measures, particularly making income up to ₹12 lakh tax-free, will provide essential financial respite to middle-class families, increasing their disposable income, encouraging spending, and promoting overall economic growth.This focus on the middle class addresses a long-standing demand and is a positivestep towards a more inclusive and robust economy. The amendment that permits taxpayers to claim the annual value of two self-occupied properties as nil, exempting them from notional rental income tax, is another welcome move.
Rising food inflation has been a persistent issue recently, and it is encouraging to see the government not only acknowledge the need to address it but also take action to curb it. Targeted initiatives like the National Mission on Pulses will significantly boost pulse production, ensure better supply, and stabilize prices. I am optimistic that these moves will help stem the slowdown in urban consumption and bring it back on the growth track.
Additionally, the budget’s emphasis on the agricultural sector, with enhanced support for farmers through increased Kisan Credit Card limits and targeted financial incentives, is commendable. These measures will not only strengthen the agricultural backbone of our country but also ensure food security and sustainable growth in the sector. In addition, the allocation of ₹1.5 lakh crore for infrastructure, the ₹1 lakh crore Urban Challenge Fund, and PPP-driven initiatives will spark the next wave of industrial growth, turning cities into economic powerhouses.
The government’s continued focus on rural infrastructure development is another step in the right direction, as it would further boost consumer demand in the hinterland. Providing farmers access to global best practices marks a pivotal step towards modernizing Indian agriculture, promising to enhance yields and farm incomes. As infrastructure projects gain momentum and consumption picks up, improved roads and connectivity will undoubtedly boost demand for branded consumer products in rural areas, leading to a broader economic recovery.
This would benefit companies like Dabur, which have a significant rural presence. We have always believed in the potential of rural India and have been actively working towards expanding our rural footprint. Our rural distribution network is among the highest in the industry, covering over 131,000 villages. This initiative would further accelerate our efforts moving forward. The recent positive trend in rural consumption is a testament to our commitment to this consumer base and our ability
to adapt to their unique needs. We feel that it’s only going to improve from here, thanks to continued Capex in infrastructure building by the government.
This year’s budget has rightly focused on employment, with significant steps to harness India’s demographic dividend through investments in skilling and education. Notably, the budget proposes setting up an AI Centre of Excellence in education, and Atal Tinkering Labs in government schools. These initiatives, coupled with broadband connectivity for all government secondary schools and Primary Health Centres in rural areas, will significantly boost India’s technological and educational landscape, arming the next generation with cutting-edge skills to meet the challenges of tomorrow.
Overall, I feel the Union Budget 2025-26 paves a transformative path towards Viksit Bharat and strikes a harmonious balance between economic growth, social welfare, and structural reforms.
(The writer is CEO of Dabur India)
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