Media and advertising agencies are showing positive signs of growth in AdEx after Finance Minister Nirmala Sitharaman announced that under the new tax system, individuals earning up to ₹12 lakh will not be required to pay taxes. This is expected to boost household consumption, savings, and investments. As a result, brands are likely to increase their advertising spending by 15-20%.
Overall, this budget not only benefits individuals but also creates a ripple effect for brands and advertisers, making it a significant win for the advertising industry.
Experts suggest that brands in sectors such as retail & e-commerce, automotive, real estate, consumer electronics & smartphones, travel & hospitality, and fintech & BFSI are likely to aggressively increase their ad spending.
Mayank Shah, Vice President of Parle Products, stated, “The Union Budget takes a bold step toward driving demand for consumer goods and addressing challenges the sector has faced in recent years. For instance, making an effective tax-free income of ₹12.75 lakh is quite impactful, as it increases consumption due to higher disposable income.”
Shah added, “With rising consumption, brands across multiple categories will increase their ad spending. The biscuit category alone spends ₹800-1000 crore on advertising, which is now expected to grow by 15-20%.”
Rajiv Dubey, VP & Head – Media, Dabur India Ltd, said, “With the increase in disposable income for consumers, we anticipate significant growth in advertising spends by brands this fiscal year. Sectors such as FMCG, consumer electronics, and e-commerce are expected to lead this surge.”
Dubey explained, “The recent budget has introduced significant tax relief for the middle class and increased spending on infrastructure and healthcare, which will further boost consumer confidence and spending. For instance, the expansion of healthcare facilities and the focus on rural development are likely to drive demand for FMCG products in these areas. Additionally, the emphasis on digital transformation and technology will encourage consumer electronics and e-commerce brands to invest heavily in advertising to capture the growing online market.”
Shrenik Gandhi, Co-founder and CEO of White Rivers Media, said, “With more disposable income in consumers’ hands due to the ₹12 lakh income tax relief, advertising spending is expected to see a positive increase, particularly in consumption-driven sectors among the salaried class.”
Gandhi continued, “The overall advertising market could experience a 10% boost, driven by increased discretionary spending. Digital ad spending, already on an upward trend, may accelerate further as brands look to capitalize on growing consumer sentiment.”
Aasif Malbari, Chief Financial Officer – Godrej Consumer Products Ltd, said, “The Union Budget 2025 takes a balanced approach by strengthening rural infrastructure, manufacturing, and consumer spending—three critical pillars for the FMCG sector. Investments in rural development and job creation will boost economic activity and drive higher consumption, opening new opportunities for market expansion.”
“Overall, the budget lays a strong foundation for a more consumption-driven economy, creating significant growth opportunities for the FMCG industry,” Malbari added.
Ambika Sharma, Founder & Chief Strategist, Pulp Strategy, said, “The Union Budget 2025 has created an optimistic outlook for consumer spending, with tax reductions putting more money into people’s pockets. Naturally, brands will respond by ramping up their ad spends to capture this increased demand.”
Sharma pointed out that overall, India’s advertising market is expected to grow by 9.5% in 2025, with digital media leading the way at a projected 15.9% growth. “With half of all ad revenues expected to come from digital channels by 2026, brands will prioritize online campaigns, programmatic advertising, and AI-driven personalization to maximize engagement.”
AdTech industry experts are anticipating a sharp increase in ad spending. Prashant Puri, CEO and Co-Founder of AdLift, said, “We expect a 20%-25% growth in advertising spends across multiple sectors. Consumers will spend more on higher-order value products. We predict a significant increase in auto sales as people look to upgrade.”
“With more disposable income, spending on travel and leisure is expected to rise, leading these sectors to boost advertising to attract customers,” Puri added.
Meher Patel, Founder, Hector AI, explained that in order to capture the growing demand and increased consumer traffic, brands are projected to raise their advertising budgets by approximately 10%, with sectors like luxury goods, technology, and travel seeing particularly strong ad spend growth. Patel stated, “With more disposable income available to consumers, a significant boost in consumption is anticipated, especially in high-end cosmetics, electronics, flagship mobile phones, home appliances, personal care products, and the travel sector, including accessories.”