India’s Prime Minister Narendra Modi’s coalition government has presented its first full-year budget following a loss of outright parliamentary majority last year.
Finance Minister Nirmala Sitharaman outlined measures aimed at combating sluggish growth, rising prices, and declining consumption in Asia’s third-largest economy.
One of the key highlights was a tax relief for the middle class, raising the income tax exemption limit to 1.2 million rupees.
Economists view this as a move to stimulate urban consumption, although the impact may be limited as only 1.6% of Indians pay income taxes.
State-led infrastructure spending continues, with an increased target of 11.2 trillion rupees allocated to major projects.
Interest-free loans for states were also announced to encourage further development.
The budget emphasized boosting nuclear energy, aiming for 100GW by 2047, and opened the insurance sector to full foreign investment.
Small-scale industries received a financial boost of 1.5 trillion rupees over five years.
Efforts to streamline business regulations and promote local manufacturing were also unveiled, including reduced import duties and production-linked subsidies.
Despite increased spending, the government remains committed to reducing the fiscal deficit to 4.4% by 2026, a move expected to attract foreign investment.
The Reserve Bank of India is set to announce its monetary
