Consumption is word of the day: Anupam Mittal, Radhika Gupta react to Budget 2025
New income tax reforms exempting earnings up to ₹12.75 lakh spark praise from industry leaders, promising a boost in consumption and economic growth.
ADVERTISEMENT
In a bid to energize domestic demand and ease the fiscal burden on millions of citizens, Finance Minister Nirmala Sitharaman today unveiled a series of transformative tax reforms in Budget 2025.
Under the new income tax regime, no tax will be payable on earnings up to Rs 12 lakh—a substantial increase from the previous threshold of Rs 7 lakh.
This move means that resident Indian taxpayers, particularly salaried professionals earning up to Rs 12.75 lakh, will enjoy a significant exemption from income tax, thereby increasing disposable income for a vast section of the middle class.
Read more: What gets cheaper after Budget 2025?
This reform has ignited a wave of positive reactions on social media from key industry figures.
Radhika Gupta, Managing Director & CEO of Edelweiss Mutual Fund, said, "CONSUMPTION is the word of the day! Heard a lot of chatter in the morning about what could possibly be done in the budget given the economic backdrop and global turmoil. I think it's a budget that addresses the needs of the here and now - putting money into the hands of people to go out and consume. And 7.5 to 12L as exemption is a bold, not incremental move. Well done!"
Anupam Mittal, Founder & CEO at People Group, offered a more expansive view of the implications of the reform.
In his social media post, Mittal stated, "For years, middle-class professionals have been India’s punching bag. Taxed at every turn, squeezed for every rupee, while the ultra-rich found loopholes and businesses got tax breaks," he observed.
Mittal lauded Budget 2025 as a "systemic correction, not just a tax cut," drawing historical parallels with post-WWII America and 2000s China—eras when boosting the middle class led to broad-based economic expansion.
"More disposable income = More consumption = More economic growth. You don’t build an economy by making people feel gareeb. You build it by making them wealthier," he added.
