The Union Budget 2025–26, presented on February 1, 2025, delivered a consumption-oriented approach, with reforms to address the needs of the middle class, revive demand, and support fiscal consolidation.
The government seem to have met market expectations on the fiscal consolidation front and has taken enough measures to provide the required boost to consumption by realigning tax slabs to provide an estimated relief of Rs. 1 lakh crore to the middle class.
As expected, Union Budget 2025 gave priority to the consumption by way of a single masterstroke of ensuring over Rs. 1 lakh in additional savings in low-income categories by way of ensuring 100% tax rebate for income up to Rs 12 lakh per annum. In our view, this is going to have a long-lasting impact on the overall consumption space, including discretionary and consumer durables. We believe that consumption, which was a weak link of economic activities for the last several quarters will also start playing its role to support economic growth, hereon.
Budget 2025-26 maintained a balance between boosting consumption and maintaining fiscal discipline amid modest capex growth.
READ IN-DEPTH ANALYSISAs a part of our Budget Exclusive reports, Mirae Asset Sharekhan’s reputed Fundamental Research Team has come out with stock picks in the Large Caps, Mid Caps and Small Caps segments
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Sectors are bound to be impacted post a Union Budget. Mirae Asset Sharekhan breaks this down for you in our lucid Sectoral Analysis section – covering Consumer Goods, Consumer Discretionary, Power, Agri, fertilisers and chemicals, Banking & Financial Services, Infrastructure, Building materials, Real Estate, Capital Goods/ Defence/ Consumer Electronics/ Shipbuilding, Information Technology, Education, Pharmaceuticals/ Healthcare and everything in between.
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