Budget Analysis 2025: Consumption vs Capital Investments
Introducing our latest research report, Budget Battle 2025: Consumption vs Capital Investment, a comprehensive analysis of the Government of India’s fiscal strategy. This budget has captured attention with a landmark tax relief—raising the zero tax slab from INR 7 lakhs to INR 12 lakhs. This shift is expected to leave an extra INR 1 lakh in the hands of the “middle class,” potentially sparking a consumption boom and investment in sectors such as affordable housing, consumer durables, and personal vehicles.
However, while consumption gains the spotlight, capital investment is the hidden star of this budget. With nearly INR 16 lakh crore allocated to capex, a sharp 18% growth over the previous year, infrastructure projects are poised to shape India’s future. From defence and railways to housing and power, the budget’s focus on capital expenditure aligns with the Government’s Amrit Kaal vision, marking the transition into Phase 2 with a goal to drastically reduce logistics costs and boost the economy.
Explore key insights into India’s capital expenditure trends, sectoral growth, and projections for GDP growth fueled by this strategic investment. Budget Battle 2025 will deepen your understanding of India’s long-term development goals and the forces shaping the country’s future.
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