The RBI is expected to cut the repo rate by 25bps in February, easing borrowing costs for the middle class. Analysts predict a total reduction of 100bps in the current cycle, fostering economic growth amid favorable inflation projections.

The budget does not offer a realistic road map to resolve the critical problems of unemployment, poor pay packages and underskilling.

Prime Minister Modi invoked Goddess Lakshmi on Budget-eve, later Indian taxpayers received significant tax relief. Finance Minister announced revised tax slabs where the biggest benefit is for those earning up to Rs 12.

Finance Minister Nirmala Sitharaman said the top priorities of Budget 2025 will be to boost growth and enhance the spending power of the middle class.