Budget 2025 Finance Minister Nirmala Sitharaman gave great relief to the middle class. The government increased the income tax exemption limit from 7 lakh to 12 lakh rupees in the new tax regime. This decision of the government will save these taxpayers Rs 80000. Ramdev Aggarwal, chairman and co-founder of Motilal Oswal Financial Services, believes that the government’s decision is most likely to promote consumption and benefit the capital markets. However, he also said that it is difficult to immediately assess where the tax saving from the change in budget 2025 will be spent.
These sectors will benefit from Budget 2025
Aggarwal said that companies like FMCG or companies like Zomato belong to small items are most likely to benefit. He said, “It is going to have a lot of seconds tier effects. The entire tax benefit will not go only in consumption companies. Capital markets can also benefit greatly.” He further said that those who are already earning good income (₹ 25 lakh or more) are already being met, so they do not need to spend their additional income. In such a situation, they can put a large part of ₹ 1 lakh in capital markets.
Raamdeo Agrawal told Strategy
Ramdev Aggarwal has given priority to New-Ej Digital and Quick Commerce companies, as they believe that these companies are growing rapidly, while old companies are earning growth slow, but their valuation is high. Ramdev Aggarwal said, “I would prefer to invest in companies that have a growth rate of 70-80%, such as digital and quick commerce companies, instead of companies that are on 70, 80 or 100 PE (Price to Earning), where The growth rate can be more than 10–15%.
Aggarwal described the focus on the global capability centers (GCCs) in the budget as ‘a very big revolution in India’, which plans to expand to Tier-2 and Tier-3 cities. However, the cost of goods has not been reduced through measures such as reducing GST. Aggarwal believes that the actual benefit will come when economic growth will increase again, which will allow more favorable allocation of resources.
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