Indian Prime Minister Narendra Modi faces the challenges of reviving growth and giving relief to a middle class hit by rising living costs, while also preparing for an uncertain year of global trade,

India's economic growth story has been driven in large part by urban consumption since the pandemic, but the economy is slowing. Modi is now hinting at tax cuts for the middle class ahead of budget talks.

Prime Minister Narendra Modi on Saturday hailed the Union Budget 2025 as a "Force Multiplier" for India's development journey, describing it as a "budget of aspirations" for 140 crore Indians. He emphasized that this budget would fulfill the dreams of the people,

India’s government is under pressure to turn around a slowing economy but with little room to manoeuvre as it prepares to present one of the most consequential budgets since Prime Minister Narendra Modi came to power more than a decade ago.

Broad policy reset needed to address stagnant consumption, boost investment and drive far-reaching reforms, economists say.