India plans to cut personal income tax rates to boost middle-class spending power and seeks to increase private investment to strengthen growth, the 2025-26 budget showed on Saturday.

The first full Budget of Modi 3.0, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, has introduced major measures to drive entrepreneurship, innovation, employment, and tax relief.

India’s GDP is projected to expand 6.3%-6.8% in FY26, according to the Economic Survey, much below the level needed to become a developed nation by 2047. The economy needs to grow at about 8% for about a decade or two to achieve that goal.