Budget 2025: Kantar Survey Reveals Tempered Optimism About India’s Economic Growth

The optimism that once defined Indian consumer sentiment is gradually waning. According to Kantar’s India Union Budget Survey, the alignment of consumer needs with budget provisions has steadily decreased over the years—from 73% in 2022 to 67% in 2024. This survey, conducted across 16 cities with 2,500 participants, highlights a wide range of expectations from diverse demographics, including salaried individuals, business owners, and affluent class members.

Key Economic Concerns

India’s GDP growth has slowed to 6.4% in 2024, down from 8.2% the previous year. While 53% of respondents believe the economy will grow faster than in previous years, this confidence has also seen a dip from 57% in 2024. Rising inflation is a dominant concern, cited by 59% of those surveyed, an increase from 57% last year.

The tempered economic outlook has shifted the focus towards addressing pressing financial concerns, including:

• Income Tax Relief: There is a strong demand for increasing the basic exemption limit from ₹2.5-3 lakh and raising the standard deduction to ₹1 lakh.
• Medical Insurance Rebates: With health concerns rising, 51% expect higher deductions under Section 80 of the Income Tax Act for medical insurance premiums.

Sectoral and Market Expectations

Stock Market and Startup Sector

The stock market remains a focal point, with 62% of consumers expecting the BSE Sensex to remain within the 81,000–90,000 points range in 2025. Meanwhile, the maturing startup ecosystem has inspired optimism, with 70% expecting improved financial performance in this sector.

Digital and Electric Transformations

India’s digital economy continues its rapid growth, with 60% adopting digital payments for daily transactions—a 7% increase from last year. Simultaneously, environmental concerns are nudging consumers towards electric vehicles (EVs), with 59% intending to purchase an EV for their next vehicle.

Shifting Global and Technological Dynamics

While global recession concerns have slightly eased, misuse of artificial intelligence (AI) is a rising worry. Around 50% of consumers expressed fear of AI’s potential role in cybercrime and financial instability. Interestingly, the recent US elections and Donald Trump’s return have spurred mixed reactions, with 53% optimistic about its impact on India’s exports.

Beyond Numbers: Mental Health and Social Challenges

The survey also sheds light on the less-discussed but equally critical issue of mental stress. Personal financial instability, workplace pressures, and cyberbullying were cited as significant challenges, underscoring the need for broader societal and policy interventions.

India’s Wishlist for Budget 2025

The upcoming budget is seen as a pivotal opportunity to stimulate economic growth. Consumers hope for policies that prioritise:

• Job creation
• Sustainable development
• Cost of living management

Amidst these hopes lies a collective desire for stability and growth, balancing the aspirations of a diverse and dynamic nation.

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