The Consumption Bet
Budget 2025 brings India’s biggest-ever ₹1 lakh crore tax rebate to boost middle-class income. But will this drive spending or be offset by inflation and weak wage growth? With GDP slowing to 6.4%, the government is betting on tax cuts, capex investment, and ₹1.5 lakh crore in interest-free loans to states for infrastructure growth. However, private investment remains weak, and global uncertainties loom. RBI’s first rate cut in five years aims to spur demand, but will households spend or save? The next few months will be crucial in shaping India’s economic future. Read more in BT Magazine's Budget Special issue— Out on stands now!