India’s Prime Minister Narendra Modi presented an annual budget aimed at wooing the salaried middle class with tax cuts and stimulating economic growth through agriculture and manufacturing.
The government, led by Finance Minister Nirmala Sitharaman, aims to boost private investment, increase funding in the agriculture sector, and enhance the spending power of India’s middle class. The focus of the budget is on an inclusive path, aiming for a fiscal deficit of 4.4% of India’s gross domestic product.
Key takeaways from the budget include:
– Income tax cuts: The government has raised the starting point for income tax to $14,800 and will introduce a new income tax bill next week, substantially reducing taxes on the middle class.
– Agriculture sector boost: A nationwide program to push high-yielding crops, focusing on pulses and cotton production, will target at least 17 million farmers. The government also plans to formally register gig workers and ease their access to healthcare.
– Investments in new startup funds and energy sector: The government has announced a new fund for startups and will provide more money to promote innovation in partnership with the private sector.
These measures are aimed at stimulating economic growth, addressing job concerns among India’s middle class, and promoting clean energy.
Source: https://apnews.com/article/india-budget-economy-02d8af3bc495ea3e6d8ff25764772fd1