Share your Views: Can higher disposable incomes drive the middle class toward equity markets?

The 2025 Budget introduced a significant change by raising the income tax exemption limit to ₹12 lakh under the New Tax Regime, giving the middle class more disposable income than ever before.

This additional financial freedom provides an excellent opportunity for individuals to reconsider how they allocate their savings. Will this surplus income flow into equity markets, fueling long-term wealth creation? Or will it remain in traditional savings instruments?

What’s your take? Will higher disposable incomes encourage the middle class to invest in equities?

Share your thoughts below!

Most people used to fixed interest bearing instruments cannot take the ups and downs of the stock market. One fall and they will run for cover. In the end only a small % will remain long enough to be succesful in the market.

I watched an interesting talk on YouTube by someone who focuses on political analysis instead of finance. He knows how micro decisions can affect people’s actions on a larger scale.

He mentioned that many workers with salaries in our country had to use their savings during the events of 2020. The effects of that financial challenge are still fresh for these people. Because of this, they are likely to put any extra money from tax refunds into their bank accounts.

Even though this money might not go straight into the capital markets, the extra funds that banks receive will still help provide the money that the capital market needs.