Budget FY26: Economists urge govt to focus on consumption, tax reforms

Economists say Budget's focus should be to stimulate consumption, manufacturing, and propel employment. They also want the Centre to continue support to the MSME sector

Following the lacklustre growth numbers in the second quarter (Q2FY25), economists believe the upcoming Union Budget for 2025-26 should focus on reforms that will stimulate consumption, manufacturing and spur employment.

 

India’s growth unexpectedly slowed to 5.4 per cent in the second quarter, due to low capital formation, weak consumption, besides adverse weather impact.

 

“We anticipate the government will continue to prioritise and enhance efforts towards skill development and employment generation, maintaining the positive momentum. This would help harness the demographic dividend, drive economic growth from both supply and demand sides and boost consumption through higher incomes,” said Rumki Majumdar, economist,