Kantar has just released findings from the 4th edition of its India Union Budget Survey. This survey maps consumer sentiments & expectations from the Union Budget 2025, ahead of it unveil on Feb 1st.
Indian consumer sentiment in 2025 reveals a mix of declining confidence and evolving expectations. While 67% of Indians perceived the 2024 budget to have aligned with their needs, this number has been on a steady decline since 2022. Amid a GDP slowdown, optimism about India’s economic growth has also tempered. Consumers are calling for relief on income tax, increased medical insurance rebates and measures to combat inflation. While concerns over AI misuse and financial security are on the rise, worry around economic recession due to global conflicts have eased compared to last year.
Most hope for the Union Budget 2025 to focus on stimulating economic growth by introduction of protectionist policies that will address challenges like sustainable development, job creation and high cost of living.
Key highlights from the survey:
A majority (67%) of Indians believed the 2024 budget met their expectations, however the percentage of people holding this positive view has steadily decreased over the past two years, from 73% in 2022 to 70% in 2023 indicating a gradual decline in public alignment with the budget over time.
Amid the recent drop in India’s GDP numbers at 6.4% (down from 8.2% the previous year), 53% Indians believe that India’s economy will still grow faster than the previous years, but this number has also declined from 57% for 2024.
Indians expect the government to provide income tax relief for the salaried class, particularly targeting middle-income earners in the upcoming union budget
Increasing basic income tax exemption limit from the current INR 3 Lacs/ USD 3.6K is the most common expectation.
Increasing standard deduction from INR 75K/ USD 892 to INR 1 Lac/ USD 1.2K.
Most also want either an increase in the threshold limit of highest tax slab from current INR 15 Lacs/ USD 17.8K or a decrease in the highest tax rate of 30% applicable on income over INR 15 Lac/ USD 17.8K.
With the threat of the HMPV virus looming and cases of life-threatening lifestyle diseases becoming more common, there is an expectation that the government will increase the limit for various deductions under Section 80 for medical insurance premium.
There is a significant rise in consumers surveyed (42% in 2024 to 51% in 2025) who want an increased tax rebate on medical/ health insurance.
59% Indians cite rising inflation as their primary concern. This number is also up from 57% in the previous year.
Nearly 50% Indians are increasingly worried about the misuse of AI, particularly its potential to fuel cybercrime and threaten financial security.
Global concerns over recession and multi-nation conflicts have eased slightly, with 44% and 43% of consumers expressing worry, down from 48% and 45% in 2024, respectively.
In-line with the recent market fluctuations, 62% Indians expect the BSE Sensex to stay between the 81000-90000 range in 2025.
As India’s start-up and new-age business sector matures, 70% Indians expect the sector’s financial performance to improve, pointing to a time of consolidation and stabilisation after a period of rapid expansion.
India’s move towards a cashless economy seems to be on a fast track, with digital payments (UPI & e-wallets) becoming the norm for 60% of consumers for everyday transactions. This is up by 7% over the previous year.
Concerns around climate change and its impact on the future is leading Indian consumers to become progressively open towards electric mobility.
Among those intending to buy new vehicles (either 2W or 4W) post 2024, a sizeable proportion (59%) are considering an EV purchase.
Personal financial instability, workplace stress, social media pressures, and cyberbullying are among the leading contributors to mental stress in India.
Following Donald Trump’s victory in the U.S. elections, 53% of Indians believe it will positively impact India’s exports of products and services, while 20% adopt a wait-and-watch approach.
Commenting on this year’s survey, Deepender Rana, Executive Managing Director- South Asia, Insights Division, Kantar, said, “India’s 2025 Union Budget comes at a time of shifting consumer sentiment and evolving priorities. While 67% Indians felt the last year’s budget aligned with their needs, this sentiment has gradually declined over the last three years, coinciding with a slowing GDP. 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.”