Budget 2023: 73% want reduction in prices, 54% GST exemption of essential items, shows AxisMyIndia survey

Budget 2023: Sixteen per cent think that inflation and upcoming 2024 elections will have a bearing on the economy this year, while 14 per cent and 11 per cent believe that government policies and Russia-Ukraine war respectively remain top concerns.

Around 73 per cent people believe that the upcoming Union Budget 2023 needs to address ‘reduction in prices of essential items like soap, detergent, cooking oil etc, while 54 per cent believe that it should look into the GST exemption of essential items. These findings were part of the Axis My India Pre-Budget CSI Survey.

The consumer sentiment index also found that 44 per cent want a reduction in GST and 32 per cent want housing loan exemption limits to be re-looked at. The survey also highlighted that 26 per cent believe that personal income tax rates should be lowered by 5 per cent. Additionally, 25 per cent want the exemption limit to be raised beyond Rs 2.5 lakh.

According to the survey, better banking network (32 per cent), better spread of telecom connectivity and 5G (19 per cent) and better internet security (18 per cent) are considered important pillars of digitisation.

Pradeep Gupta, Chairman & MD, Axis My India, said, “Consumers are looking forward to the upcoming budget announcements as a ray of hope for better life and livelihood and there is a huge expectation in terms of price control. Consumers are also looking forward towards various measures that the government will take towards fuelling digitization in the Indian economy. Overall, despite global headwinds the Indian economy should be poised for further growth in 2023”.

Around 22 per cent consider oil prices to significantly impact the Indian economy. Sixteen per cent think that inflation and upcoming 2024 elections will have a bearing on the economy this year, while 14 per cent and 11 per cent believe that government policies and Russia-Ukraine war respectively remain top concerns.

The CSI survey found that overall household spending has increased for 59 per cent families by 4 per cent compared to last month. Spending on essential, personal care and household items has increased by 40 per cent, which is a dip of 1 per cent from last month.

Spending on non-essential and discretionary products such as AC, car and refrigerator has increased for 5 per cent of families, which is a decrease of 2 per cent from last month. Sentiment towards discretionary spends was the lowest percentage hike in the last four months.

Expenses towards health-related items increased for 33 per cent of the families, which reflects a decrease in consumption by 6 per cent. It must be pointed out that the lesser the spends on health items, the better the sentiments. Sentiment towards health spends was the lowest percentage increase in the last four months.

Consumption of media such as TV, Internet, radio etc. increased for 20 per cent of the families, which is a dip of 1 per cent from last four months. Mobility has increased for 9 per cent of the families, which is an increase of 2 per cent from last month.

The survey took into account responses of 6,100 people across 27 states and UTs, out of which 65 per cent belonged to rural areas and 35 per cent to urban areas.