1 day ago
Last Updated:June 06, 2025, 13:33 IST
As the Modi government 3.0 completes one year in office, the middle class stands -- the most influential vote bank -- stands strong and with better benefits
The move demonstrates confidence in India’s growth story. (PTI)
Fiscal experts had predicted that the Reserve Bank of India (RBI) would cut the repo rate by 25 basis points, a third in a series of cuts. But the RBI inspired optimism by cutting it by 50 basis points.
The move demonstrates confidence in India’s growth story. As RBI chief Shaktikanta Das had pointed out that despite global turmoil and uncertainty, India seems to be surging ahead.
There has been a fall in food inflation on items such as pulses and cereals. Furthermore, infrastructure development, increased exports, and cuts in imports have given the economy an upswing. This has also given the RBI confidence that economic growth is amenable to a repo rate cut.
GOOD NEWS FOR MIDDLE CLASS
Clearly, the cut brings cheer to the middle class as it means a cut in interest rates on their home loans and more disposable income. This means the middle class would have more cash in hand and would want to spend more, bringing hope to the consumer sector. Not only this, a cut in home loan interest rates would encourage prospective homebuyers and boost the real estate sector.
As the Modi government 3.0 completes one year in office, the middle class stands strong and with better benefits.
There have been some positive indications for the middle class, such as the zero tax for income up to Rs 7.5 lakh.
ITR filings have increased from 3.79 crore to 9.79 crore in 11 years, which shows pay slabs have increased, bringing more people under the income tax bracket. Inflation has averaged 5% between 2015-16 and 2024-25, which is down by 8%.
Government sources say that with easier income tax compliance and simplification, the middle class not only has more disposable, but also engages in more transparent transactions.
Overall, it reflects not just growth in the middle class but, politically speaking, shows that the government is confident.
The middle class is the most influential vote bank, and most political parties, especially the Congress, are wooing it. The government hopes that with the repo rate cut and resultant positive sentiment, this middle class will be impressed by the Modi 3.0 policies.
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als...Read More
Pallavi Ghosh has covered politics and Parliament for 15 years, and has reported extensively on Congress, UPA-I and UPA-II, and has now included the Finance Ministry and Niti Aayog in her reportage. She has als...
Read More
News politics Expected 25 Bps Repo Rate Cut, RBI Gave 50: Modi 3.0 Echoes ‘Man Ki Baat’ Of Middle Class
