India's Historic Tax Relief: Middle Class Gets ₹1 Trillion Boost to Spending Power

In a landmark move to stimulate economic growth, India's Finance Minister Nirmala Sitharaman announced unprecedented tax reforms that will put ₹1 trillion back into middle-class pockets annually. The new tax structure raises the zero-tax threshold to ₹12 lakh from ₹7 lakh, offering savings up to ₹80,000 per year for individual taxpayers. This significant relief aims to boost household consumption and savings amid concerns about slowing urban demand. The reform will benefit approximately 10 million taxpayers, potentially catalyzing increased consumer spending and economic growth.

Source: Union Budget 2025-26, Ministry of Finance