The Economic Survey 2025, presented by Union Finance Minister Nirmala Sitharaman, offers a comprehensive analysis of India's economic landscape, with particular attention to factors affecting the middle- income segment. Analysts and economists have provided insights into key areas such as income tax structures, inflation trends, and GDP projections, all of which hold significant implications for the middle class.
While the Economic Survey itself does not propose specific changes to income tax slabs, it sets the stage for potential adjustments in the upcoming Union Budget. There is widespread anticipation that the government may introduce tax relief measures aimed at the middleclass. Reports suggest that annual incomes up to Rs10 lakh could be made tax-exempt under the new tax regime, a move that would provide substantial financial relief to middle-income households.
The survey acknowledges the challenges posed by inflation, particularly in essential commodities. Overall inflation stands at 5.2%, with food price inflation closer to 8%. However, when excluding specific volatile items like tomatoes, onions, potatoes, pulses, and vegetables, the inflation trends show a more subdued picture. Economists note that persistent high inflation, especially in food prices, has led to reduced discretionary spending among middle-class consumers, affecting their overall financial well-being.
The Economic Survey projects real GDP growth to remain in the range of 6.3% to 6.8% for the fiscal year 2025-26, slightly below the 6.4% estimated for 2024-25. This moderated growth outlook reflects challenges in sectors such as manufacturing and construction, which have experienced reduced momentum. Economists emphasize the importance of revitalizing these sectors to ensure sustainable economic expansion that benefits the middle-income population.
The Economic Survey 2025 highlights critical areas affecting the middle-income group, including potential income tax reforms, ongoing inflationary pressures, and moderated GDP growth projections. Analysts suggest that targeted policy interventions in the forthcoming Union Budget could alleviate some of the financial challenges faced by the middle class, fostering a more inclusive economic environment.
(Business Correspondent)
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