BBC Gossip
  • Home
  • Health
  • News
  • Crime
  • Local News
  • People
  • Guest Post
BBC Gossip
BBC Gossip
  • Home
  • News
  • Health
  • People
  • Celebrities
  • Crime
  • Entertainment
  • Finance
  • Guest Post
Home Key points from India’s budget reducing income tax for middle-class workers to boost economic growth
  • Local News

Key points from India’s budget reducing income tax for middle-class workers to boost economic growth

    Takeaways from India's budget that slashes income tax on the salaried middle class to spur growth
    Up next
    Simon Guobadia Files Amended Defamation Lawsuit Against Porsha Williams After 'RHOA' Season 16 Trailer
    Simon Guobadia Updates Defamation Lawsuit Against Porsha Williams Following Release of ‘RHOA’ Season 16 Trailer
    Published on 01 February 2025
    Author
    BBC Gossip

    Indian Prime Minister Narendra Modi’s administration unveiled its yearly budget to Parliament, with a strong emphasis on attracting the working middle class through tax reductions and driving economic expansion by bolstering farming and manufacturing sectors.

    The Finance Minister, Nirmala Sitharaman, highlighted in her budget presentation the government’s commitment to promoting private investments to reinforce growth, allocating more resources to the agricultural industry, and amplifying the purchasing ability of India’s middle-income group.

    Emphasizing a collective approach, Sitharaman stated, “The budget’s focal point is to ensure all segments progress inclusively,” while also setting a target for the fiscal deficit to reach 4.4% of India’s GDP by the fiscal year 2025-26.

    The world’s fifth-largest economy is expected to post its slowest growth in four years due to a sluggish manufacturing sector, persistent food inflation, stagnant job growth and weak urban consumption. The country’s chief economic advisor, in a report released on Friday, forecast India’s economy would grow 6.3% to 6.8% in the next fiscal year.

    Here are some takeaways from the budget:

    Income tax cuts for the salaried middle class

    Sitharaman said her government will initiate reforms in sectors like finance, power, urban development and mining, with “transformative reforms in taxation.” She raised the starting point for income tax to $14,800 from $8,074 and said the government will introduce a new income tax bill next week.

    “The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment,” Sitharaman said.

    Modi, who is now in his third term as the country’s prime minister, has been under pressure to allay discontent among the country’s middle class and generate more jobs to help sustain growth. Many economists had suggested his government make tax cuts on individuals’ income and implement job creation programs to mitigate rising unemployment.

    According to the Center for Monitoring the Indian Economy, youth unemployment was at 7.5% in January, underscoring the challenge of delivering jobs in a country of more than 1.4 billion people.

    Agriculture sector and gig economy gets a boost

    To boost productivity across the agriculture sector, the Indian government will launch a nationwide program to push high-yielding crops, focusing on the cultivation of pulses and cotton production. Sitharaman said the program will target at least 17 million farmers and raise the limit for subsidized credit offered to them from $3,460 to $5,767.

    The government also plans to formally register India’s gig workers and ease their access to health care. Sitharaman said the government will issue them identity cards and maintain a national registry that will ensure their inclusion in welfare initiatives.

    India’s gig economy could employ more than 23 million people by 2030, according to estimates by government think tank NITI Aayog.

    Investments in new startup funds and energy sector

    Sitharaman announced a new fund for startups and said the government will provide more money to promote innovation in partnership with the private sector and launch programs to push manufacturing and exports. The share of manufacturing in India’s economy is close to 17%, short of its aimed goal of 25%.

    The government will infuse more money to increase tourism-led employment in several Indian states and help with building infrastructure and boosting air connectivity to 120 new destinations over 10 years, Sitharaman said.

    She also announced the Nuclear Energy Mission to drive India’s transition toward clean energy, with a goal of developing at least 100 GW of nuclear power by 2047.

    Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.

    You May Also Like
    Fentanyl dealer busted near Colorado State Capitol sentenced to federal prison
    • Local News

    Federal Prison Sentence for Fentanyl Dealer Arrested in Close Proximity to Colorado State Capitol

    DENVER — The United States Attorney’s Office for the District of Colorado…
    • BBC Gossip
    • May 31, 2025
    Adam Sandler steps back on the golf green in latest 'Happy Gilmore 2' trailer
    • Local News

    Adam Sandler returns to the golf course in the new preview for ‘Happy Gilmore 2’

    The sports comedy sequel will also feature many familiar faces from the…
    • BBC Gossip
    • June 1, 2025
    Suspect accused of shooting, injuring 2 Mifflin Township police officers found, authorities say
    • Local News

    Authorities say they have located the suspect who allegedly shot and wounded two police officers in Mifflin Township.

    As the officers pursued a passenger, he reportedly turned and opened fire…
    • BBC Gossip
    • May 31, 2025
    Elyria police investigate Sunday morning shooting
    • Local News

    1 Person Charged in Elyria After Fight Escalates to Shooting

    Levi Webb, a 26-year-old individual, was taken into custody following claims of…
    • BBC Gossip
    • May 31, 2025
    Afro Mexican actors fighting racism celebrate their heritage through their plays
    • Local News

    Celebrating Heritage: Afro Mexican Actors Combatting Racism through Theatre

    TICUMÁN – TICUMÁN, MéThere was something about her body, but Mexican actress…
    • BBC Gossip
    • May 31, 2025
    Takeaways from AP’s report on how federal public health cuts are affecting communities across the US
    • Local News

    Lessons Learned from AP’s Study on the Impact of Federal Public Health Budget Cuts on US Communities

    CHARLOTTE, N.C. – A wide range of individuals and programs focused on…
    • BBC Gossip
    • May 31, 2025
    José Ramírez's hitting streak snapped, Cleveland Guardians fall to Los Angeles Angels 4-1
    • Local News

    José Ramírez’s streak of hits ends as Cleveland Guardians lose to Los Angeles Angels 4-1

    Ramírez went 0 for 3, but did manage a walk to extend…
    • BBC Gossip
    • May 31, 2025
    Akron police release bodycam video from incident where suspect fired at officers
    • Local News

    Police in Akron share bodycam footage from incident involving suspect shooting at officers

    Police say one officer suffered a ‘minor leg injury.’ A 27-year-old woman…
    • BBC Gossip
    • May 31, 2025
    Put-In-Bay's Paul Jeris set to blast off into space with Blue Origin
    • Local News

    Paul Jeris from Put-In-Bay is getting ready to launch into space with Blue Origin

    Island local Paul Jeris will journey to space with Blue Origin’s New…
    • BBC Gossip
    • May 31, 2025
    ‘He did nothing wrong:’ Family demands answers after Orange County deputies shoot, kill man
    • Local News

    “Family Seeks Answers: Orange County Deputies Shoot and Kill Man Despite No Wrongdoing”

    In Orange County, Florida, the family of a man who was shot…
    • BBC Gossip
    • June 1, 2025
    California track-and-field championships draw limited protest over trans student's participation
    • Local News

    Protest over participation of transgender student at California track-and-field championships is minimal

    CLOVIS, Calif. – An additional medal will be awarded at California’s high…
    • BBC Gossip
    • May 31, 2025
    Lorain County declared 'sanctuary jurisdiction' by Trump administration, putting federal funding at risk
    • Local News

    Trump administration designates Lorain County as a ‘sanctuary jurisdiction,’ jeopardizing federal funding

    The Department of Homeland Security listed Lorain County as one of a…
    • BBC Gossip
    • May 31, 2025

    Recent Posts

    • Romesh Ranganathan announces unexpected decision to take a break from his career, clarifies he is not quitting.
    • Possible break in unsolved case of ‘Budweiser Girl’ murder as suspect emerges
    • Elderly ex-Constable vindicated after wrongful arrest by UK Police for opinion-related charges
    • “Hamas Ready to Release Hostages in Efforts to Bring Peace to Gaza Conflict”
    • Celebrity from Weeds loses fight against lymphoma
    Romesh Ranganathan reveals plans to step back from career in shock move - but insists he is not retiring
    • News

    Romesh Ranganathan announces unexpected decision to take a break from his career, clarifies he is not quitting.

    Romesh Ranganathan has revealed he’s hitting pause on his hectic showbiz schedule…
    • BBC Gossip
    • June 1, 2025
    Mystery of 'Budweiser Girl' murder could finally be solved as lurking suspect emerges from the shadows
    • US

    Possible break in unsolved case of ‘Budweiser Girl’ murder as suspect emerges

    Jessica Richardson discovered her mother, Cheryl Williams Frady, lifeless in the…
    • BBC Gossip
    • June 1, 2025
    Elderly Former Constable Gets Justice After Being Arrested by UK Police for Thought Crimes
    • US

    Elderly ex-Constable vindicated after wrongful arrest by UK Police for opinion-related charges

    In 2023, there was a notable case involving a man who was…
    • BBC Gossip
    • June 1, 2025
    Terror group Hamas claims it is ready to release hostages in a bid to end the war in Gaza
    • News

    “Hamas Ready to Release Hostages in Efforts to Bring Peace to Gaza Conflict”

    HAMAS has said that it is ready to release hostages in a…
    • BBC Gossip
    • June 1, 2025
    BBC Gossip
    • Home
    • Privacy Policy
    • News
    • Local News
    • Health
    • Crime
    • Guest Post