Opinion | 2025: A Reform Year That Put Middle Class, Common Citizens First |
The year 2025 stands out as a landmark in India's reforms journey-one that decisively placed the middle class and the common man at the heart of policymaking. Guided by the vision articulated by Prime Minister Narendra Modi, this period witnessed a series of interconnected reforms spanning taxation, labour, investment, and ease of living. Together, these measures have reshaped India's economic landscape by strengthening household finances, boosting consumption, and reinforcing confidence in long-term growth.
In his Independence Day address, the Prime Minister underscored the central role of the middle class in nation-building, noting that while this segment contributes significantly to the country, it also aspires to a better quality of life. That vision found concrete expression within months through policy actions that directly touched lives. From the new income tax framework to GST 2.0, the reforms of 2025 signal a shift from complexity to clarity, and from burden to empowerment.
Among the most impactful steps has been the restructuring of the direct tax system. By exempting incomes up to Rs 12 lakh and enhancing the standard deduction to Rs 75,000, the government has delivered meaningful relief to a vast majority of taxpayers. As a result, nearly 90 per cent of taxpayers-around seven crore individuals-now fall within the tax-free bracket. The financial gains are tangible: an individual earning Rs 12 lakh saves Rs 1 lakh in taxes, with total savings rising to Rs 1.75 lakh after accounting for the standard deduction. Higher income brackets also benefit, while retirees........