The Union Budget 2023 is out, with a few hits and misses in the retail sector. The industry was expecting a few direct SOPs, which were completely absent from the budget, particularly regarding the Input Tax Credit. However, looking at the positive aspect of it, the budget has increased cash flows in the hands of individuals through relaxed tax provisions; this will undoubtedly have a direct impact on their spending, and we see this as a window of opportunity that can benefit the retail sector through increased spending. Further reductions in personal tax slabs, rates, and other measures should help increase disposable income for the middle class, with a multiplier effect on the economy and retail and consumer sectors.
