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Below the Expert views on Consumption Revival: The Right Pill for Ailing Economy by Manish Chowdhury, head of research, StoxBox

Amidst darkening clouds of global uncertainty and early signs of slowing economy, consumption and corporate earnings, the budget has delivered on expectations of reviving economic growth through a slew of measures along with treading a path of fiscal prudence by setting a fiscal deficit target of 4.4% for FY26. The key highlight of the budget was relief for the middle-income class through tax relief, with measures aimed to increase the disposable income and boosting consumption. The government’s capex allocation of Rs. 11.21 lakh crores in FY26 (vis-à-vis Rs. 10.18 lakh crores in FY25 RE) and efforts to align it into the most productive areas of the economy such as roads, railways, airports and infrastructure through 5-year planning is likely to have a multiplier effect and help accelerate capital formation in the economy. The intent to make these efforts percolate deep into the economy through close coordination with states (interest free loans), higher efforts towards simplifying ease of doing business (lowering TDS and TCS, decriminalization of about 100 laws) and incentives to drive investments (insurance, shipping) bode well for the long term. To sum it up, “no bad news is good news” is the essence of today’s budget and has the right ingredients to drive home the theme of predictability and conservatism from the government.

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