Prime Minister Narendra Modi on Sunday called the upcoming Goods and Services Tax (GST) changes a “new generation reform” and said it will give a significant boost to India’s economy and benefit the middle class, youth and consumers across the country. PM Modi talked about the Neo Middle class and said, “”In the last eleven years, 25 crore people in the country have defeated poverty. Having emerged from poverty, a large group of 25 crore people, known as the neo-middle class, is playing a significant role in the country today. This neo-middle class has its own aspirations and dreams. This year, the government presented a gift by making income up to Rs 12 lakh tax-free and naturally, when income tax relief up to Rs 12 lakh is granted, the lives of the middle class undergo a profound transformation, bringing about so much simplicity and convenience.”
He also mentioned, “Now, the poor, the neo-middle class, and the middle class are receiving a double bonanza. With the reduction in GST, it will be easier for the citizens of the country to fulfil their dreams…”
#WATCH | Prime Minister Narendra Modi says, "In the last eleven years, 25 crore people in the country have defeated poverty. Having emerged from poverty, a large group of 25 crore people, known as the neo-middle class, is playing a significant role in the country today. This… pic.twitter.com/jggGEJEt9S
— ANI (@ANI) September 21, 2025
Who is the Neo Middle Class?
The ‘neo-middle class’ are those who are benefiting from economic growth and moving towards middle-class status. According to one study, this class aspires to advance in society and achieve a better economic position.
The neo-middle class are those whose incomes fall between the lower and middle levels, and who are willing to spend an additional amount of money on a product or service, although they are hesitant to decide whether the additional expense is justified.
This class is considered an important pillar of global economic activity, playing a key role in shaping consumer trends and stimulating economic growth.
Also Read: ‘GST Bachat Utsav’ To Begin With Navratri, Says Prime Minister Narendra Modi In Nation’s Address
