Key Points

The Modi government has positioned the middle class as a central pillar of India's economic growth over the past eleven years. Through strategic tax reforms, the administration has significantly reduced income tax burdens and simplified filing processes. Inflation management and targeted welfare schemes have been key focus areas, providing tangible economic relief to ordinary citizens. These systematic reforms aim to create a more accessible and supportive economic ecosystem for India's middle-class population.

Key Points: Modi's 11 Years Middle Class Gains in Tax, Inflation Relief

  • Individuals earning up to Rs 12 lakh now pay zero income tax
  • ITR filings increased 135% from 2013-14 to 2024-25
  • Inflation controlled at average 5% between 2015-16 and 2024-25
3 min read

Middle-class Indians found themselves at heart of nation's progress in these 11 years: Centre

How Modi government transformed middle-class life through tax reforms, simplified systems, and economic initiatives over past eleven years

"Listen to citizens, simplify the system and deliver on promises - Government Report"

New Delhi, June 5

The Modi government at the Centre, just days away from turning 11, said people's hopes, needs and aspirations have not just been heard, but also acted upon with purpose, as it highlighted several initiatives taken up by the government.

In a report released by the Press Information Bureau Research Unit on Thursday, the government said that, from tax relief leaving more money in people's hands to pension schemes that promise security in old age, the last eleven years have seen a steady and sincere effort to make life easier, fairer, and more dignified for Indians.

"The government has cut through red tape, simplified rules and made everyday systems work better. Be it filing taxes, buying a home, commuting to work or affording medicines, things have become simpler and more accessible. These are not scattered changes but a pattern of reforms that speak to the real concerns of ordinary citizens. What stands out is the consistency," the report's preamble read.

Over the past eleven years, the government said it has gone beyond token measures to make a real difference in the lives of the middle class. From lowering income tax rates to simplifying returns, every move, it said, has been aligned with the core idea of letting citizens keep more of what they earn.

"The approach has been clear. Listen to citizens, simplify the system and deliver on promises," the report card said.

The most recent tax reforms, especially those in the Union Budget 2025-26, are a clear sign that the Government has placed its trust in the middle class as a pillar of national growth.

It said the effort has been constant and focused, whether raising the income threshold for zero tax, introducing a simplified tax regime, or making return filing easier than ever.

A major change was announced in the Union Budget 2025-26: individuals earning up to Rs 12 lakh annually will now pay no income tax, except on special incomes like capital gains.

With the standard deduction of Rs 75,000, even those earning Rs 12.75 lakh will pay no tax.

These enhanced tax exemptions led to the government giving up nearly Rs 1 lakh crore in revenue.

The government has once again lauded itself for making income tax return filings simple.

According to the government, the simplification in ITR filing is reflected in the rise of individual ITR filings, which increased from 3.91 crore in 2013-14 to 9.19 crore in 2024-25, a 135 per cent rise.

On the inflation management front, the government boasted that the price rise remained under control under the current administration.

"Things began to change from 2014. Over the next eleven years, inflation came under firm control. From 2015-16 to 2024-25, the average rate fell to just 5 per cent. The difference is visible not only in the numbers but in daily life. Stable prices gave families breathing room," the report read.

The report touched upon reform-oriented initiatives such as Unified Pension Scheme, Smart Cities Mission, Pradhan Mantri Awas Yojana (Urban), expansion in metro network, UDAN scheme, Ayushman Bharat, Jan Aushadhi scheme, Pradhan Mantri Kaushal Vikas Yojana, among others.

- ANI

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Reader Comments

R
Rajesh K.
As a salaried employee, I must say tax reforms have been a game-changer! My take-home salary increased significantly after the new tax regime. The ITR portal is now so simple even my father files his returns without help. More money in our pockets means better quality of life 🇮🇳
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Priya M.
While tax benefits are good, I wish the government would also focus on reducing education costs. My son's school fees have doubled in 5 years. The middle class still struggles with healthcare and education expenses despite these reforms. More work needed on ground reality.
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Arvind S.
The metro expansion in our city has been life-changing! Earlier it took 2 hours to reach office, now just 45 minutes. Smart Cities Mission is visible in better roads and cleaner neighborhoods. These infrastructure projects create real impact for working professionals like me. Kudos!
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Neha T.
Jan Aushadhi stores are a blessing! My mother's diabetes medicines now cost 1/10th of what we paid earlier. But wish they'd open more centers in rural areas. Also, while inflation is controlled, vegetable prices still pinch our monthly budget. Overall progress but some gaps remain.
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Sanjay R.
As a small business owner, GST simplified things but compliance is still complex. The tax benefits are great but wish they'd reduce the paperwork burden on MSMEs. The middle class isn't just salaried people - we entrepreneurs need more support too!
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Meena P.
PM Awas Yojana helped us get our first home! The subsidy made EMI affordable. But banks need to be more cooperative in processing loans. Still, from tax savings to home ownership dreams coming true, middle class Indians have seen tangible benefits. Hope this continues! 🙏

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