Bhopal Summit
Repo rate cut by RBI, income tax cut in Budget to help middle class, says PM
This story was originally published at 13:42 IST on 24 February 2025
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--PM: Repo rate cut by RBI, income tax cut in Budget to help middle class
--CONTEXT: PM Modi speaking at Global Investors Summit 2025 in Bhopal
--PM Modi: In continuous discussion with states on de-regulation
NEW DELHI – Prime Minister Narendra Modi on Monday lauded the monetary policy easing by the Reserve Bank of India and the government's proposal to cut income tax rates in the Budget for 2025-26 (Apr-Mar), and asserted that the decisions would empower India's middle class. This class, the prime minister said, was the biggest taxpayer in the country.
Earlier this month, the Monetary Policy Committee of the RBI unanimously decided to reduce the policy repo rate by 25 basis points to 6.25%, the first cut in nearly five years. The government, in the Budget for FY26, proposed to fully exempt tax on income up to INR 1.2 million.
Speaking at the Global Investors Summit in Bhopal, Modi referred to the World Bank's predictions that India would remain the world's fastest growing economy in the coming years. Everyone has expectations from India, Modi said, e it the common people, economic policy experts, various countries or institutions. The comments that have come in the last few weeks would boost the enthusiasm of every investor in India, Modi said. Just a few days ago, the World Bank said that India would remain the world's fastest-growing economy in the coming years. A representative of Organisation for Economic Co-operation and Development said the future of the world is in India, Modi said.
Modi stated that the Centre was in continuous discussion with states over deregulation. Earlier, the Economic Survey for 2024-25 (Apr-Mar) had stated that India would need to improve its global competitiveness through grassroot-level structural reforms and deregulation to reinforce its medium-term growth potential.
The Economic Survey for FY25 projected GDP growth of 6.3% to 6.8% for the next fiscal year starting April. It also said that India must reach a real GDP growth rate of about 8%, on average, for roughly 10-20 years, to achieve the 'Viksit Bharat' vision for 2047.
Modi underlined there had been unprecedented growth in the energy sector in the last decade. In the green energy sector, India has achieved what was difficult even to imagine, he said. In 10 years, about $70 billion has been invested in the renewable energy sector, Modi said.
The prime minister also said that the country had seen a boom in infrastructure in the past decade, and Madhya Pradesh had received a huge benefit from this. A large part of the Delhi-Mumbai Expressway, which connects two big cities of the country, passes through Madhya Pradesh, he said. End
Reported by Kuldeep Singh and Krity Ambey
Edited by Avishek Dutta
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