The Indian Budget gives a tax relief to the middle class to increase consumption, growth | Business and economy news

Income tax rates have been reduced as the fifth largest economy focused on the incentive of domestic demand and economic growth.

The Government of Indian Prime Minister Narendra Modi revealed the annual budget focused on appeal on the middle class in the country and encouraged economic growth by increasing agriculture and production.

Announcing annual budget In Parliament on Saturday, Finance Minister Nirir Sitharaman said that people earn up to 1.28 million Indian Rupeas ($ 14,800) will not have to pay taxes annually, increasing the threshold with 700,000 Rupees.

The Government also lowered tax rates for people earning above the new threshold, since the fifth world’s largest economy aims to increase domestic demand due to uncertainty due to global economic appearances due to potential new tariff obstacles.

“The new structure will reduce the middle class tax and leave more money in its hands, increasing the consumption of households, savings and investment,” Sitharaman said.

This move will result in an annual Indian hole of 1 trillion ($ 11.6 billion) affected by a treasury revenue, Reuters news agency reported.

It is expected that the world’s most beautiful country will publish its own the most settled growth In four years of next year in the midst of fragile urban demand and poor private investment, while the stubborn high inflation of food reduced available revenue, the agency said.

Measures to help the poor, young people, farmers and women are also involved in the budget for 2025-26, Sitharaman said.

The revenue per capita is about $ 2,700 for an Indian population of 1.4 billion, and about one -third is considered to be a middle class.

Tax reduction “is likely to stimulate consumer demand and middle class savings that have faced challenges from elevated inflation and lower revenue growth,” Sakshi Gupta, an economist at HDFC Bank, told Reuters.

In order to balance the lost income, the Government has been a modest increase in capital consumption this year, which will increase in 11.21 trillion rupees in 2025-26 in the current year compared to 10.18 trillion.

Fashion, in your own third term As a prime minister of the country, he confronted the pressure to complain of the middle class and create more jobs to help with the maintenance.

The Government will also increase productivity in the agricultural sector by launching programs throughout the country to push the crops of high yield, focusing on the cultivation of impulses and cotton production.

Sitharaman said the program would target at least 17 million farmers and raise a limit for a subsidized loan offered to them from $ 3,460 to $ 5,767.

The government also plans to officially register Indian gigs and facilitate their access to health. Sitharaman said that the Government would issue them identity cards and help them approach the initiatives for well -being.

The Indian gig of the economy could employ more than 23 million people by 2030, according to the Government Research Center or Aayog.

Sitharaman also announced a new Startapova Fund and said that the Government would provide more money to promote innovation in partnership with the private sector.

She also announced a nuclear energy mission to start a transition of India to pure energy, with the aim of developing at least 100 GW of nuclear energy by 2047.