Is the budget’s tax relief enough? Saurabh Mukherjea weighs in
However, Mukherjea argues that the true catalyst for a stronger consumption cycle lies in job creation rather than short-term tax relief. The multiplier effect of the tax cut is estimated at 1.1, which is not substantial enough to drive a major economic transformation.
POWERED BY
Voltas 1.5 Ton 5 Star, Inverter Split AC(Copper, 4-in-1 Adjustable Mode, Anti-dust Filter, 185V Vectra Elegant,White)
?41,890?82,890Buy Now49%
OFF
IFB 8 Kg 5 Star AI Powered Fully Automatic Front Load Washing Machine Steam Refresh (SENATOR WSS 8014, Silver, In-built Heater, 4 years Comprehensive Warranty)
?38,990?51,690Buy Now25%
OFF
Crompton Ozone 75 Litres Desert Air Cooler for home | Large & Easy Clean Ice Chamber | 4-Way Air Deflection | High Density Honeycomb Pads | Everlast Pump | Auto Fill
?9,799?17,200Buy Now43%
OFF
atomberg Studio Smart+ 1200mm BLDC Ceiling Fan with IoT & Remote | BEE 5 star Rated Energy Efficient Ceiling Fan | High Air Delivery with LED Indicators | 2+1 Year Warranty (Earth Brown)
?5,799?8,490Buy Now32%
OFF
Lenovo IdeaPad Slim 3, Intel Core i7-1255U, 12th Gen, 16GB RAM, 512GB SSD, FHD IPS, 15.6"/39.62cm, Windows 11, MS Office 2021, Grey, 1.63Kg, 82RK011GIN, 1Yr ADP Free, 3months Game Pass Laptop
?59,690?83,890Buy Now29%
OFF
MI 138.8 cm (55 inches) 4K Ultra HD Smart Android OLED TV O55M7-Z2IN (Black)
?72,999?1,99,999Buy Now64%
OFF
Aquaguard Aura RO+UV+UF+Taste Adjuster(MTDS) with Active Copper & Zinc 7L water purifier,8 stages of purification,suitable for borewell,tanker,municipal water(Black) from Eureka Forbes
?12,999?24,500Buy Now47%
OFF
LG 32 L Convection Microwave Oven (MC3286BRUM, Black, Auto Cook Menu, Stainless steel cavity, 360° Motorised Rotisserie for Bar-be-queing, Indian Cuisine, Tandoor Se, Steam Clean & Diet Fry)
?18,990?23,999Buy Now21%
OFF
A boost in savings could also enable faster credit growth, benefiting both banks and non-banking financial companies (NBFCs).
Despite this, stock market valuations remain high, which raises concerns about sustainability. Unless there is a significant recovery in earnings growth in FY26, the Indian markets may face challenging quarters ahead.
Mukherjea believes that while tax relief offers some support to consumption, it is not substantial enough to alter long-term investment decisions. Instead, sustainable growth will depend on broader economic factors such as job creation, infrastructure development, and global market trends.