Union Budget 2025: Eat, drink, be merry with more bang for your buck

Restaurant and cinema owners, travel operators, alcoholic beverage makers all expect better days, with the tax reliefs putting more money in the hands of people.

Sagar Daryani, president of the National Restaurant Association of India and co-founder of Wow! Momo, said the restaurant sector saw declining footfalls over the past year. "But now, there is going to be extra cash in people's hands. With the higher tax exemption limit and the general tax reliefs, we expect to see more of the middle class dining out. With increased footfalls across malls and restaurants, profitability of businesses will improve, spurring job creation," Daryani said.

However, he expressed disappointment that input tax credit had still not been extended to the restaurant industry. "It's much needed to reduce the high mortality rate in the industry - over 50% of restaurants shut down within the first 24 months," he said.

Amar Sinha, chief operating officer at alcoholic beverages maker Radico Khaitan, said the govt's growing focus on boosting discretionary spending signals a positive outlook for his sector. "As disposable incomes rise, consumers are more inclined to indulge in premium experiences, fueling a demand surge for quality products," he said.

The travel sector expects to benefit from both the tax relief and the proposal to expand regional connectivity under the UDAN scheme. These, together with the increased LRS (liberalised remittance scheme) limit "creates a perfect storm for the travel industry", said Mohak Nahta, founder & CEO of e-visa startup Atlys. Pramod Arora, CEO of growth and investment at PVR Inox, said the tax relief measures will increase consumer spending especially in cinemas and other businesses that require mid-level discretionary spends, such as domestic travel.

Devang Sampat, managing director of Cinepolis India, expressed confidence in a revitalised entertainment sector. "This puts more money directly into the pockets of our movie-loving audiences, and that's something we're incredibly excited about. More disposable income means more opportunities for families and friends to enjoy the magic of the big screen," Sampat said. Kalyan Krishnamurthy, CEO, Flipkart Group, said the significant tax relief for the middle class, streamlined TDS/TCS norms, and a strong push for local manufacturing puts more power in the hands of consumers, boosting their purchasing capacity and access to a wider range of quality products. Shriti Malhotra, executive chairman of Quest Retail - The Body Shop, said the increase in the income tax exemption limit to Rs 12 lakh is a decisive step toward boosting urban consumption, allowing middle-class households greater flexibility and spending power.