Modi has decided to place a big bet on small consumers :::: Why and How Indian Middle Class and Indian Govt 'failed' to capitalise the best of own initiatives ? ::: Modi changing the Game to start with

PM Narendra Modi has made people like us happy !!

How? 

He said “Nagrik Devo Bhava" .....

This is almost a cheer up for my surname !!

The Prime Minister’s address on Sept 21, 2025 had the phrase and Modi said this new slogan was in line with his government's citizen-centric form of government.

Making Middle Class happy is never easy; Narendra Modi continues to win their trust.

This is significant part of Indian politics today and this is something his detractors have failed to understand. In most cases the 'inability' to understand is deliberate. This makes things worse for the Congress and the opposition parties.

When Rahul Gandhi talks about Vote Chori ... He simply does not understand what Indians are thinking.  

In his GST-Bachat Utsav (Saving Fest) on Sept 21; PM Narendra Modi said the government's twin decisions—income tax relief and GST reforms

—would help the people of the country save 

over Rs 2.5 lakh crore in a year. 

This is about Modi government's "vote of confidence" in the middle class.

This army is growing. There is a continuity in India's "neo middle class" -- something Namo had spotted right from his days as the Gujarat Chief Minister.

The Middle Class numbers are still 'growing' because more and more people are emerging out of poverty. This automatically gives some credit to the Prime Minister.

But an issue is debate also is under Modi 3.0 -- that is since June 2024 - have the big corporates failed to deliver on the big tax breaks given in 2019 ??

colour has a message !!

Both the I-T and the GST reliefs are aimed at boosting the spending power of India's middle class, the main drivers of consumption. Private consumption is the main driver of India's economy. It formed 61.4% of the country's nominal GDP in the last financial year (2024-25).  Modi also said how the new measures would help the poor, 

the neo-middle class 

and the middle class. 

The Goods and Services Tax (GST) rate rationalisation, which kicks in today, is a sequel to the income tax relief announced in Budget 2025-26.  

To be frank, the Modi government tried to boost industry and consumption in September 2019 by cutting the base corporate tax from 30% to 22%. It thought the savings would be utilised by the companies in capacity enhancement and result in job creation and wage hikes. However, despite 15-year-high profits, the corporates didn't increase real wages that would beat inflation growth. 

They ended up pocketing the gains from the tax relief. The government lost Rs 1.84 lakh crore in revenue in two financial years (2019-20 and 2020-21) 

due to big ticket sop given to corporates.

But the 'gift' had no impact on the economy.

Blogger 

Let us change the dynamics of discussions.

Look at Gurgaon - not far from New Delhi. The speedy growth here created magic. There is a promise of prosperity and Indians from across the country seem to be playing some roles or the other in Guargaon - directly or indirectly. But this city is marred by poor infra and huge deficiency of urban services. Just a few days of rains had left everything in shambles and everybody was helpless.  

One revelation is that --  

Less money in pockets amid the price rise in common goods, household spending and savings in India has seen a dip. 

This has a bearing on the overall economy.  

Despite 15-year-high profits, the corporates haven't increased wages.

Inflation growth remained. 

Those hit maximum were the tax-paying middle-class, who are paying more in taxes than the corporates.

India grew at 5.4% in the July-September quarter and the consumption component has been seeing lower growth. This is worrying. The FMCG companies were 'concerned' about this dip in consumption.

Private consumption contributes to 60% of India's GDP. India's economic growth slowed to a seven-quarter low of 5.4% in the July-September quarter, from 6.7% in the April-June quarter.  Even the biggest average salary hike of 5.4% is lower than the rate of inflation, which grew at an annual average rate of 5.7% in the last five years.

The private sector capital expenditure also declined and may well be 25 per cent lower in 2025-26 as compared to the previous year.

The Congress party claims banks are willing to lend but companies are unwilling to borrow since the investment environment is not seen to be conducive to expansion. Of course, the CPI-M knows how to exaggerate things. 

But they also have something to talk about.

In 2024, the CPI-M said in a statement:

"The suicides by farmers and agricultural workers have crossed about 1,12,000 in the 10 years. 

- Suicides by daily wage workers between 2014 and 2023 have crossed 3,12,214 as per the NCRB data (taking average for 2023). 

- Many States have not revealed the truth or have fudged the data. 

- Even according to these conservative estimates about 4,25,000 farmers, agricultural workers and daily wage workers who are also of agrarian origin have committed suicide during the BJP regime. 

These figures do not include women farmers and agricultural workers, landless, tenant cultivators, forest workers, fish workers and others. 

"Such an unimaginable human tragedy unprecedented in the entire history of human-kind is policy-driven; Narendra Modi and his team are culpable of the crime of abetting their suicides."

  

But now the Modi Govt has chosen a different track.  

After the income tax relief, the Govt hopes the new GST rates (rationalisation) will ensure more money/cash/UPI in the hands of middle class.

This will encourage spending and thus boost the consumption-driven economy. 

Modi has decided to place a big bet on small consumers.   

From secure digital payments to affordable housing, from reduced taxes to expanded healthcare, and from vibrant startup ecosystems to enhanced infrastructure, the government has crafted a robust framework to uplift the middle class.

When it comes to marking one of the most significant initiatives taken up by the PM Modi-led government, financial inclusion can be listed at the top. 

The Unified Payments Interface (UPI) can be termed as the one that has made digital transactions in India accessible and inclusive.

It is because of this strategically formulated measure that the payments are now instant, safe, and secure, eliminating transactional fraud. 

There is unprecedented confidence among the middle class now, enabling them to adopt and get adapted to the process of digital banking.

This shift has not only streamlined cash flow and transactions but also empowered small businesses and individuals, encouraging them to participate in the digital economy seamlessly.

Tax reforms have further alleviated the financial burden on the middle class. 

Those earning up to Rs 12 lakh per annum (Rs 12.75 lakh in the case of salaried individuals due to the standard deduction) will now not have to pay any tax under the new regime.

This move indicates increased savings, thereby leaving middle-class families with more disposable income. 

Ends