Budget 2025: Tax Cuts, Capex Push & Fiscal Discipline to Drive India’s Growth : Quote by Dhiraj Relli, MD and CEO, HDFC Securities

The Budget 2025 presents a masterful blueprint for India’s economic growth, skillfully balancing fiscal responsibility with progressive reforms. The budget creates a perfect foundation for future interest rate reductions by maintaining fiscal discipline while implementing growth-oriented measures. The government’s strategic focus on capital expenditure, while prudently managing non-capex expenditure, demonstrates excellent fiscal management.

In a landmark fiscal measure designed to uplift the nation’s backbone – its middle class – the government has graciously extended the tax-free threshold to a remarkable ₹12.75 lakh under the new tax regime. This magnanimous gesture translates into an unprecedented infusion of ₹1 lakh crore into the hands of middle-class households nationwide. Such a substantial enhancement to disposable income promises to invigorate the marketplace, mainly benefitting the fast-moving consumer goods sector and durable goods manufacturers, as families find themselves empowered to fulfil their essential needs and aspirational purchases with renewed confidence.

Innovation and employment generation receive powerful support through the enhanced Start-up Fund of Funds and targeted labour-intensive schemes. The budget’s comprehensive approach to strengthening agriculture, MSMEs, investments, and exports is poised to catalyse credit demand, invigorating the banking sector’s loan growth.

This thoughtful combination of tax relief and sector-specific initiatives creates a strong foundation for sustainable economic growth.