India rolls out middle-class tax relief to boost consumption, growth

Annual budget announced as economy on track for weakest expansion in 4 years

20250131 India Currency

India's new budget raises limits on foreign direct investment in the fast-growing insurance sector. (Photo by Yuki Kohara) 

KIRAN SHARMA

NEW DELHI -- India will cut personal income tax rates to spur middle-class spending and accelerate growth in the world's fifth-biggest economy, Finance Minister Nirmala Sitharaman said Saturday as she announced the annual budget.

India's economy is projected to expand by 6.4% in the current financial year, the weakest pace in four years, and consumers have been grappling with high food inflation.

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