New Delhi: Kantar, the world’s leading marketing data and analytics company, has unveiled findings from the 4th edition of its India Union Budget Survey. With the Union Budget 2025 set to be announced on February 1, the survey provides an insightful look into the evolving sentiments and expectations of Indian consumers during a time of economic transformation.
Declining Consumer Confidence Amid Economic Shifts
The survey reveals that while 67% of Indians felt the 2024 budget aligned with their needs, this figure marks a steady decline from 73% in 2022 and 70% in 2023. This decline comes against the backdrop of India’s GDP slowdown to 6.4% in 2024, down from 8.2% the previous year. While 53% of respondents remain optimistic about India’s economic growth, this number has also seen a dip from 57% in 2024.
Top Expectations from the 2025 Union Budget
Amid rising inflation and financial insecurity, Indian consumers are looking for bold fiscal measures to stimulate growth and provide relief. Key expectations include:
- Income Tax Relief:
- Increase in the basic income tax exemption limit beyond the current INR 3 lakh (USD 3.6K).
- Raise the standard deduction from INR 75,000 (USD 892) to INR 1 lakh (USD 1.2K).
- Adjustments to the highest tax slab threshold or a reduction in the 30% tax rate on incomes above INR 15 lakh (USD 17.8K).
- Enhanced Medical Insurance Rebates:
With the prevalence of lifestyle diseases and the looming threat of the HMPV virus, 51% of respondents now expect higher tax rebates on medical insurance premiums, a sharp increase from 42% in 2024. - Combating Inflation:
Rising inflation remains the top concern for 59% of Indians, up from 57% last year. Consumers hope for policies to alleviate the high cost of living. - Protectionist Policies and Job Creation:
Calls for policies addressing sustainable development and employment dominate consumer expectations, reflecting concerns over economic resilience.
AI and Financial Security Concerns
The survey highlights rising apprehension about AI misuse, with nearly 50% of Indians expressing concerns about its potential to fuel cybercrime and threaten financial security.
Shifts in Consumer Behavior
- Digital Payments on the Rise:
India’s transition to a cashless economy continues to accelerate, with 60% of respondents using digital payments like UPI and e-wallets for daily transactions, up 7% from 2024. - Growing Preference for Electric Vehicles (EVs):
Concerns about climate change have influenced 59% of prospective vehicle buyers to consider EVs post-2024, signaling a progressive shift in mobility preferences. - Start-Up Sector Maturation:
As India’s start-up ecosystem stabilizes, 70% of respondents expect financial performance in the sector to improve, marking a period of consolidation after rapid expansion. - Mental Health Challenges:
Personal financial instability, workplace stress, and social media pressures are leading contributors to rising mental health concerns in India.
Global Factors and India’s Outlook
Interestingly, 53% of Indians believe Donald Trump’s recent victory in the U.S. elections will positively impact India’s exports, indicating optimism about strengthening international trade ties.
Deepender Rana, Executive Managing Director – South Asia, Insights Division, Kantar, remarked, “India’s 2025 Union Budget comes at a time of shifting consumer sentiment and evolving priorities. With inflation and financial security concerns on the rise, citizens are looking for tax relief, enhanced medical insurance benefits, and measures to address the challenges posed by AI misuse. The upcoming budget represents an opportunity to address these challenges and support India’s economic momentum.”
As the Union Budget 2025 approaches, the government faces the challenge of balancing economic growth with citizens’ evolving priorities. The budget’s focus on tax reforms, inflation control, and sustainable development could set the tone for India’s economic trajectory in the coming year.
