Union Budget 2025 strengthens the middle class for a consumption-driven economy
Subscribe to enjoy similar stories. The Union Budget 2025, presented by finance minister Nirmala Sitharaman, introduces key measures to strengthen India’s middle class. According to estimates by PRICE, this segment—households earning between ₹6 lakh and ₹36 lakh annually at 2024-25 prices—comprises over 560 million people across 126 million households, making it a driving force behind consumption, investment, and innovation in the economy.
Notably, nearly 40% of this group consists of salaried workers, underscoring their crucial role in sustaining economic growth. With a strong emphasis on tax relief, housing, employment, and infrastructure development, the budget aims to enhance financial security, boost demand, and propel India toward its vision of Viksit Bharat—a developed and economically empowered nation. A key highlight of the budget is the revision of income tax slabs, providing much-needed relief to middle-class taxpayers.
Individuals earning up to ₹12 lakh annually are now exempt from paying income tax, a move that directly benefits those in the ₹6-20 lakh income range—home to 75% of the salaried middle class. The increase in the standard deduction further strengthens their spending power, ensuring higher disposable incomes. These measures are designed to fuel demand for consumer goods, automobiles, and housing, reinforcing India's growth momentum.
Housing, a key aspiration of middle-class families, has received a strong push in Union Budget 2025. Rising real estate prices, especially in urban areas, have often placed homeownership out of reach. To address this, the government has expanded the PM Awas Yojana (Urban) and introduced additional tax benefits on home loans, making it easier for families in the ₹12-35
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