59% of Indian consumers identify rising inflation as their primary concern ahead of the Union Budget 2025, a notable increase from 57% last year, reveals a report by Kantar. The survey, conducted to gauge public sentiment and expectations, also reveals that over 51% of respondents are seeking increased tax rebates on medical and health insurance, underscoring the growing financial burden on households.
The report highlights a steady decline in consumer satisfaction with Union Budgets over the past three years. While 67% of Indians believed the 2024 budget met their expectations, this figure has fallen from 73% in 2022 and 70% in 2023. Amidst the ongoing economic challenges, consumers are calling for substantial relief measures, particularly for the salaried middle class. Popular demands include increasing the basic income tax exemption limit from Rs 3 lakh, raising the standard deduction from Rs 75,000 to Rs 1 lakh, and revising the highest tax slab to ease the burden on higher-income earners.
The survey also reflects India’s economic slowdown, with GDP growth dropping to 6.4% in 2024 from 8.2% the previous year. Despite this, 53% of respondents remain optimistic about India’s economic prospects in 2025, although this number is down from 57% last year. Concerns over economic recession and global conflicts, however, have eased slightly, with 44% and 43% of respondents expressing worry—down from 48% and 45% in 2024, respectively.
Furthermore, 60% of consumers are now using UPI and e-wallets for daily transactions, up by 7% from the previous year. Similarly, environmental concerns are driving increased interest in electric vehicles, with 59% of prospective buyers indicating plans to purchase EVs, reflecting a growing shift toward sustainability. AI misuse is another growing concern, with nearly half of those surveyed (50%) expressing worry about its potential to fuel cybercrime and financial insecurity. Personal financial instability, workplace stress, and cyberbullying were also identified as significant contributors to mental health challenges in India.
In financial markets, 62% of Indians expect the BSE Sensex to remain between 81,000 and 90,000 in 2025, reflecting cautious optimism. Meanwhile, 70% of respondents believe the financial performance of India’s startups and new-age businesses will improve as the sector transitions into a phase of consolidation and stabilisation.
