India's Budget Targets Middle Class, Agriculture, and Economic Growth
Key Highlights:
* Income Tax Cuts for Salaried Middle Class:
* Income tax starting threshold raised from $8,074 to $14,800.
* New income tax bill to be introduced to further reduce taxes and boost household consumption.
* Agriculture Sector Boost:
* Nationwide program to promote high-yielding crops, especially pulses and cotton.
* Increased subsidized credit limit for farmers from $3,460 to $5,767.
* Gig Economy Support:
* Formal registration for gig workers.
* National registry to ensure access to welfare initiatives.
* Investments in Startups and Energy:
* Fund established for startups to foster innovation.
* Government funding to promote manufacturing and exports.
* Tourism Infrastructure and Clean Energy:
* Increased funds for tourism-related employment.
* Nuclear Energy Mission to develop 100 GW of nuclear power by 2047.
Context:
* India's fifth-largest economy faces slow growth due to manufacturing challenges, inflation, and weak job growth.
* Prime Minister Modi aims for fiscal deficit of 4.4% of GDP in 2025-26.
Takeaway:
* Budget focuses on spurring economic growth by supporting the middle class, agriculture sector, and manufacturing.
* Tax cuts and increased spending aim to boost household consumption and investment.
* Government prioritizes job creation and formalization of the gig economy.
* Investments in startups and energy address long-term economic goals.