As a business leader and a business strategist i dearly look forward to the Union Budget announcements every year.

Union Budget 2025-26: A Retailer’s Perspective

The Union Budget 2025-26 introduces a range of measures that could assist the retail sector, particularly the fashion industry. Here’s my take on how these changes might impact us as retailers:

Boosting Disposable Income

The proposed income tax reforms are a welcome move to ease the financial strain on the middle class. With more disposable income in their pockets, consumers are likely to spend more freely, boosting foot traffic and sales in stores. This creates an excellent opportunity for retailers to highlight value-driven and aspirational products that cater to this renewed sense of financial confidence.

Unlocking Rural Markets

Rural markets are emerging as a significant growth area, and the targeted tax incentives for their development could be a game-changer. For retailers, this is an invitation to expand beyond urban strongholds. Tailoring inventory to regional preferences and enhancing digital outreach will be key to tapping into this burgeoning market.

Lower GST Rates on Mass Consumption Products

A reduction in GST rates on mass consumption products, including apparel, has the potential to drive demand. Lower prices will attract a broader customer base, especially in the entry-level and value segments. For retailers, this presents an opportunity to refine pricing strategies and boost volume sales, making fashion more accessible to everyone.

Regulating Quick Commerce

The government’s focus on regulating quick commerce practices is a step in the right direction. By promoting ethical and sustainable operations, this move ensures fair competition across the retail ecosystem. For us, it’s an opportunity to recalibrate our strategies to balance speed, quality, and customer satisfaction.

Expanding the PLI Scheme for Consumer Goods

The expansion of the Production Linked Incentive (PLI) scheme to consumer goods could have far-reaching effects. By bolstering domestic manufacturing and reducing reliance on imports, this policy supports the availability of affordable, locally made products. For retailers, it’s a chance to promote the “Made in India” story while meeting growing consumer demand with competitive offerings.

Looking Ahead

The Union Budget 2025-26 lays a promising foundation for the retail industry’s growth. By focusing on affordability, rural development, and sustainable practices, we can align our strategies with evolving consumer needs. The future of retail is brimming with potential, and with thoughtful planning, we can make the most of these opportunities to create a stronger, more inclusive retail ecosystem.