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Budgets

Expectations from Union Budget 2023: Price Reduction, Tax Cuts, and Digital Push

Strategic Insights

— 2 min read

Consumers across India are eagerly waiting for the Union Budget 2023, with a significant majority hoping for a reduction in the prices of essential items like soap, detergent, and cooking oil, and a decrease in income tax rates. The India Consumer Sentiment Index (CSI) survey conducted by Axis My India revealed that 73% of participants believe that the budget should address price reduction of essential items, while 26% expect a 5% reduction in personal income tax rates. Additionally, consumers are looking forward to government measures that will fuel digitization in the Indian economy, with 32% believing that better banking networks will drive growth.

Key Takeaways:

  • 65% of surveyed consumers belonged to rural India, while 35% were from urban India.
  • 23% of participants were from the Northern parts of the country, 27% from Eastern India, 28% from Western parts, and 22% from Southern India.
  • The Pre-Budget net CSI score increased from +8 to +10, reflecting an increase of 2 points.
  • Consumption of essential products has increased, with 40% of families spending more on personal care and household items.
  • Spending on non-essential and discretionary products like ACs, cars, and refrigerators has increased for 5% of families.
  • Expenses towards health-related items like vitamins, tests, and healthy food have surged for 33% of families.
  • The majority of participants (73%) believe that the budget needs to address 'reduction in prices of essential items like soap, detergent, cooking oil'.
  • Consumers hope for reduction in income tax rates, with 26% expecting a 5% reduction and 25% wanting the exemption limit to be raised beyond Rs 2.5 lakh.
  • 54% of participants believe that the Budget should look into GST exemption on essential items, while 44% want a reduction in the GST rate.

Statistics:

  • 6,100 people were surveyed in total.
  • 65% of participants were from rural India.
  • 40% of families increased spends on essentials like personal care and household items.
  • 5% of families increased spending on non-essential and discretionary products.
  • 33% of families increased expenses towards health-related items.
  • 73% of participants believe that the budget should address price reduction of essential items.
  • 26% of participants expect a 5% reduction in personal income tax rates.
  • 25% of participants want the exemption limit to be raised beyond Rs 2.5 lakh.
  • 54% of participants believe that the Budget should look into GST exemption on essential items.
  • 44% of participants want a reduction in the GST rate.

Sources:

  • Axis My India's India Consumer Sentiment Index (CSI) survey
  • IE Online Media Services Pvt. Ltd. (Copyright 2023)
  • Contify.com (distributed by)

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