Has given a tax exemption gift to the middle class, while there has been a plan to give a new speed to domestic production and consumption. Experts say that Finance Minister Nirmala Sitharaman has taken major decisions this time playing on the front foot, which will speed up consumption and investment in the coming months.
Tax free up to 12 lakhs: more money in middle class pocket
Middle class has got the biggest gift. Now no tax will have to be paid on income up to Rs 12 lakh, whereas earlier this limit was Rs 7 lakh. This change will increase the ability to spend by increasing the savings of the people, which will directly be seen on the FMCG and auto sector.
Domestic production will get an edge over China
UR Bhatt, director of Alphanity Fintech, says that focusing on areas such as electronics, toys and footwear in the budget is a master stroke. These are the same sectors in which China exports huge amounts of goods to America. If the United States impose strict tariffs on China, India will have a great opportunity to increase exports and occupy the market in these areas.
‘Made in India’ toys will change the picture
The government has decided to develop India as a global hub of toys. Under this, emphasis will be laid on cluster development, skill training and production of high quality toys. The export of innovative and sustainable toys from India will increase, which will give global identity to the ‘Made in India’ brand.
Footwear and leather sector new speed
Footwear and leather companies have also got a big benefit in this budget. The government plans to launch a focus product scheme for design, manufacturing and component support. It will benefit in the production of leather and non-leather footwear, which will increase both exports and profits.
Stock market stir: Mirza International 20% above
The direct impact of the budget announcements showed on the stock market. Relaxo footwear, Liberty Shoes and Campus Activar’s shares rose by 9%. Mirza International shares saw a 20% increase in the leather sector. Haryana Leather Chemicals and Super Tannery were also other big gainers.
Balance in tax exemption and capital expenditure
Nilesh Shah of Kotak Mahindra AMC described this budget as a budget to meet three big needs. He said that the government has taken steps in the right direction with reducing financial deficit, giving tax exemption to middle class and increasing capital expenditure.