The middle class in India has welcomed Finance Minister Nirmala Sitharaman’s Union Budget 2025. The significant tax relief announced in the budget is expected to provide a substantial boost to the Indian economy. Here’s a calculation of how this tax relief will contribute to the country’s economic growth in the long run.
According to financial experts, the savings from tax exemptions will gradually flow into the market, stimulating domestic consumption. Expert Akshat Shrivastava, founder of Wisdom Hatch, shared his insights on how the tax cuts could reshape India’s economic landscape, applauding the Union Budget. He stated that the country will reap long-term benefits from the tax cuts.
“If you make 12 lakhs, you will save between 80K to 1 lakh INR,” Shrivastava tweeted, highlighting the direct impact of Finance Minister Nirmala Sitharaman’s tax cuts. He estimated that approximately ₹1.4 crore taxpayers would benefit from these ‘tax slash’ savings. As per his calculations, a substantial sum which is saved could either flow into expenditure or savings. “This will drive the domestic consumption story in India.” He also added that the tax relief could have far-reaching effects beyond it’s immediate financial benefits.
Despite the expected rise in disposable income, the stock market remained largely unimpressed. On Saturday, the Sensex inched up by just 5 points, closing at 77,506, while the Nifty dipped 26 points to settle at 23,482.
However, Akshat acknowledges that the stock market hasn’t reacted positively yet, attributing this to India’s relatively slow economic growth. He added that this sluggish growth makes the country less attractive to foreign investors.
Calculations of Akshat Shrivastava
If you make 12 Lakhs, you will save between
80K to 1 Lakh INR.
Close to 1.4Lakh tax payers will save this.
This is 1.4Lakh crore of money: which would go for expenditure & savings. And, will drive the domestic consumption story in India.
We should give credit where the credit is due.
The stock market hasn’t really shown any positivity (yet) because the Indian market is still unattractive for foreign investors. This is because of the fact that our economy’s growth rate is fairly slow.
Hopefully, with more private consumption demand picking up– foreign investors too will see high return opportunities in India.
This is a great positive start. Like many of you, I too have criticised the government policies. And, I am glad that the government is listening.
Hoping that positive measures continue.
If you make 12 Lakhs, you will save between
80K to 1 Lakh INR.Close to 1.4Lakh tax payers will save this.
This is 1.4Lakh crore of money: which would go for expenditure & savings. And, will drive the domestic consumption story in India.
We should give credit where the…
— Akshat Shrivastava (@Akshat_World) February 2, 2025
