Budget 2023-24: Relief to middle class set to spur private consumption

The government plans to collect just over Rs 9 trillion via personal income tax in FY24

The Budget has given a fillip to private consumption by providing income tax relief to the salaried and middle class. This is expected to spur demand for consumer goods such as personal-care products, food items, two-wheelers and passenger cars.

“The intent is there to provide support to private consumption by putting more disposable income in the hands of people. This is positive for leading stocks in fast-moving consumer goods (FMCG), consumer durables and auto sectors,” said Dhananjay Sinha, head of research and strategy at Systematix Institutional Equity. However, he added that the overall income tax relief at Rs 35,000 crore