Prime Minister Narendra Modi hailed the Union Budget 2025 as a ‘force multiplier,’ emphasizing its role in fulfilling the aspirations of 140 crore Indians. He had previously referred to the budget as a ‘common-man budget’ during a Cabinet meeting.
Also read: Union Budget 2025 Explained: How Will Income Tax Relief Supercharge Consumption, Economic Growth?
After the finance minister Nirmala Sitharaman presented the budget, He highlighted the budget’s emphasis on youth opportunities and infrastructure, with a particular focus on the shipbuilding industry and tourism. Modi applauded Finance Minister Nirmala Sitharaman for crafting a budget that promotes savings, investment, and economic growth, ensuring benefits for every citizen.
Budget
India’s middle class, especially, has been hoping for income tax cuts and other relief measures to reduce financial pressure. Household budgets, particularly lower down the economic ladder, have been trapped by slowing incomes and rising costs.
In July 2024, the government increased the standard deduction but kept the income tax slabs the same. After decreasing corporate tax rates six years ago and greatly increasing spending on infrastructure, the government has been hoping that the benefits would eventually reach the lower levels of society. However, this hasn’t happened yet.
The drop in consumer spending slowed down the country’s economic growth, which was limited to 5.4% in the second quarter ending September 2024.
The Economic Survey 2025, presented in Parliament, called for deregulation to boost investor confidence. At the same time, Chief Economic Advisor V Anantha Nageswaran urged corporations to upgrade pay and working conditions to increase consumption, which leads to 60% of India’s GDP.
