Budget 2025: Edelweiss' Radhika Gupta Calls For A Move To Spur Consumption

Ahead of the Union Budget 2025 that will be presented by Finance Minister Nirmala Sitharaman, there are certain expectation around the tax structure. The focus is centred around potential relief to the middle class in a bid to address the current lull in urban consumption.

There should be some bold thinking on tax cut and relief for middle class, said Edelweiss Mutual Fund CEO Radhika Gupta, while speaking to NDTV Profit. The market would be upset if no measures are announced in the Budget to spur consumption, she added.

"Not doing anything on consumption may, perhaps, upset the market," Gupta said. She also raised question on the lack of pickup in private sector's capital expenditure. "The worry is that in the last few years, with everything you've done, why hasn't the private sector capex started to pick up? That animal spirit of the Indian economy — why hasn't that kicked off?"

Pankaj Murarka, promoter and investment advisor at Renaissance Investment Managers, also expects bold moves when it comes to spurring consumption.

"We need to acknowledge that we are coming out of a time where real income has declined. Households need help. So, you need to do something for the middle class. Tax reduction for the middle class is important, but the government must play on all fronts," he said.

Budget 2025: Expectations Around Personal Income Tax

The probability of change in the structure is limited, although experts are also betting for new benefits for taxpayers.

"I think broadly status quo. Not expecting any big changes this time around. May be more nudge towards the new tax regime by increasing some benefits or increasing the limits under it," Mohit Gang, co-founder of Moneyfront had said ahead of Budget 2025.

On the other hand, there are some expectations regarding income tax slabs.

"My expectation on the tax front is some relief for middle class taxpayers, especially in the new tax regime, by expanding the tax slabs," said Arnav Pandya, founder of Moneyeduschool ahead of the budget.