Interim Budget: Projected economic growth of 6-6.8% to drive ad spends - Harsha Razdan

Finance Minister Nirmala Sitharaman presented the last Budget before the country goes to the polls. Being the Interim Budget, there were no major announcements, however, there was still much cheer, with Agriculture, Infrastructure (including housing) and Green ecosystem as the key thrust areas. The Finance Minister also provided growth impetus for the EV sector, as well as for the start-up, Digital, AI, new-age technology sectors. During her Budget speech, Sitharaman stated, “Digital India is key to formalising the Indian economy”, thus emphasising the Government’s commitment to put Digital on the fast track of growth.

Sharing his insights, Harsha Razdan, CEO, South Asia, dentsu, expressed his happiness that the government’s budget priorities include simplifying processes through digital empowerment.

He said, “While we await the full budget, the interim one signals a commitment to nurturing strategic long-term investments and inclusive growth. The investment focus towards Infrastructure, Start-ups, Tourism, Women Empowerment, and Green Energy should stimulate consumption, boosting the economy and advertising expenditure. The budget also heralds a promising era for companies leveraging AI and market technology to drive a technology-driven economy.”

Razdan further noted that the focus on digital connectivity promises fresh avenues for innovation and expansion within the industry. “The projected economic growth of 6-6.8% in the next fiscal year will continue to drive consumption and better advertising spending across diverse industries.  However, the Industry was hoping for additional measures to boost rural consumption, and that could dampen advertising spends to an extent,” he added.