Prime Minister Narendra Modi, in his speech in the Budget session of 2025, stated that the middle class is confident and determined to anchor India's journey to become a developed nation. Not only did he acknowledge the contribution of the middle class, but he also had once again reposed his faith in the middle class to take India to the category of a developed nation.

Just a day before the budget speech, he said, “I pray to Goddess Lakshmi to bestow her blessings on the poor and middle class.” The next day, the basic exemption limit was raised to Rs. 12.00 lakhs, and for the salaried class, the exemption limit was further expanded to Rs. 12.75 lakhs.

The exponential increase in the basic exemption limit from Rs. 7.00 lakh to Rs. 12 lakh, a more than 70% increase in the basic exemption limit in a single financial year, was never heard of. But this is not new to the Narendra Modi government.

Since PM Modi took charge in 2014, the tax-free income limit has been raised four times—from Rs. 2 lakh to Rs. 2.5 lakh (2014), Rs. 5 lakh (2019), Rs. 7 lakh (2023), and now effectively Rs. 12 lakh. This support to the middle class has been a tangible acknowledgement of the middle class’s contribution to nation-making. It is a salutation about the honesty of the middle class.

India today has become the 4th largest economy, overtaking Japan with a GDP of $ 4 trillion. It has grown from being the 10th largest economy in 2014, with a GDP of $ 1.86 trillion. The growth is humongous. Even the per capita income has nearly doubled from USD 1438 in 2013-14 to USD 2880 in 2024, while the Government was able to maintain average inflation of nearly 5% for more than a decade and has stabilised more money in the hands of the middle class.

In the past 11 years, more than 25 crore people have exited multidimensional poverty and entered the neo-middle class. As the middle class expands, so does its aspiration. The government does not disappoint in the soaring aspirations and expectations of the middle class. It constantly delivers whether it is education or opportunities, whether it is ease of living or living with peace, the middle class gets a priority pass.

When we speak of ease of living, there has been a phenomenal change. Better connectivity of tier II and tier 3 cities through airways, good, clean trains and railway stations, metros in urban areas, Namo Bharat Rapid Metros for interstate connectivity, there has been a vast spread of infrastructure which operates and serves the middle class.

The health sector today has been made more affordable and accessible, ultimately leading to huge savings. Across India, a network of more than 15,000 Jan Aushadhi Kendras also provides affordable medicine to the poor and middle class. The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PMJAY), which provides health insurance coverage to all senior citizens aged 70 and above, irrespective of their socio-economic status, is being appreciated by the middle class far and wide.

The other area where the government has excelled is education, which is the backbone of the middle class. With increased institutes of higher education, including medical colleges, engineering, and management institutes, increased avenues are accommodating the middle class, propelling them to grow even further. Education, along with skill-based training, has created greater opportunities for middle-class families. From the space sector to startups, the middle class has its way of taking India forward.

From good jobs to entrepreneurial ventures, the middle class remains at the zenith. Pradhan Mantri Mudra Yojana (PMMY), providing loans to entrepreneurial ventures, has been able to give loans to 11 crore entrepreneurs since 2015. These entrepreneurs who have changed from being job seekers are now job creators. They are the quintessential middle class. An interesting trend observed under PMMY was that the average ticket size of loans has nearly tripled—rising from Rs. 38,000 in FY16 to Rs. 72,000 in FY23, and further to Rs. 1.02 lakh in FY25 signifying the expansion of market depth and width which has been served by the middle class to a large extent. The middle class now earns more.

Increased income has led to higher savings and consumption. The middle-class boom in infrastructure is evident from the infrastructure market in all geographies across India, be it metro, tier II, or tier III cities.

With lower interest rates on housing loans and a 'Credit Linked Subsidy Scheme' for the middle class, having a house is now a reality in real estate. While the boom was evident, the issues of housing infrastructure, like a lack of transparency and delays in residential projects, were also pertinent. But here, too, the government was quick to step in. To protect the interests of homebuyers and to ensure transparency and accountability in the Real Estate Sector, Parliament has enacted the Real Estate (Regulation and Development) Act, 2016. Over 1.42 lakh projects are now covered under RERA.

Under the SWAMIH (Special Window for Affordable and Mid-Income Housing), 51,000+ dwelling units in stressed housing projects have been completed, and keys handed over to home-buyers. Another 40,000 units will be completed in the year 2025 itself.

The middle class stands as the foundation of India’s remarkable transformation into a global economic powerhouse. Through progressive policies, from substantial tax relief to transformative infrastructure, healthcare, education, and housing initiatives, the Modi government has consistently empowered the middle class to thrive. By fostering opportunities for education, entrepreneurship, and economic mobility, the government has ensured that the middle class not only benefits from India’s growth but also drives it. As India continues its ascent toward becoming a developed nation, the middle class, with its resilience and ambition, remains at the forefront, shaping a prosperous and inclusive future for all.