Prime Minister Narendra Modi’s address ahead of Budget 2025 has set off speculation about key policy priorities. Invoking the middle class, women, and the poor, his speech suggested a budget shaped by economic relief, tax tweaks, and welfare expansion.
“I pray to Goddess Lakshmi to shower the poor and middle class with blessings,” Modi stated, fueling expectations of a populist tilt. His emphasis on “inclusion, investment, and innovation” signals potential interventions in inflation control, tax revisions, and women-centric schemes.
With inflation and stagnant tax relief squeezing India’s middle class, Budget 2025 may introduce measures to ease financial strain. Analysts anticipate adjustments to income tax slabs and increased food subsidies.
The government, experts said, will likely partner with the RBI to balance interest rates, stabilize the rupee’s exchange rate, and mitigate import-induced inflation on essentials like fuel and edible oil.
Expanding the Pradhan Mantri Garib Kalyan Anna Yojana or introducing GST exemptions on essential goods could also be on the table.
Taxpayers await possible revisions in income tax slabs and deductions. While the government intends to retain the new tax regime, reports suggest tweaks may be in store.
Last year, Finance Minister Nirmala Sitharaman raised the standard deduction for salaried individuals to ₹75,000, claiming it provided a net gain of ₹17,500. This year, discussions indicate another potential hike, along with possible relief for higher-income earners to boost consumer spending.
With economic demand sluggish and elections looming, the government may be compelled to ease tax burdens.
Modi underscored women’s empowerment as a central focus, hinting at welfare expansions.
“Nari Shakti and women empowerment will be the centre of focus,” he stated, raising expectations for job creation, financial inclusion, and welfare schemes.
The Employment Linked Incentive Scheme and Skilling Program could see refinements to create more opportunities for women. Experts also anticipate increased allocations for Mission Shakti, Matru Vandana Yojana, and Janani Suraksha Yojana, which focus on safety, maternal health, and financial access.
In last year’s budget, ₹3 lakh crore was earmarked for these initiatives—this figure is expected to rise.
“Programs like Pradhan Mantri Jan Dhan Yojana and Mudra Yojana have already empowered women financially. Increased funding would further boost entrepreneurial and economic growth,” says Rajesh Sharma, Managing Director, Capri Loans.
Additionally, with the Mahila Samman Savings Certificate set to expire in March 2025, the government might extend it or introduce new investment options tailored for women.
Modi’s invocation of Goddess Lakshmi in reference to the poor has heightened expectations for expanded social security programs.
Key focus areas may include:
- Extending free food grain schemes
- Strengthening rural employment programs under MGNREGA
- Boosting affordable housing through PMAY
If Modi’s speech is an indicator, Budget 2025 will attempt to balance populist welfare measures with economic growth strategies—but whether it meets expectations remains to be seen.