India plans to cut personal income tax rates to boost middle-class spending power and seeks to increase private investment to strengthen growth, the 2025-26 budget showed on Saturday.

India’s GDP is projected to expand 6.3%-6.8% in FY26, according to the Economic Survey, much below the level needed to become a developed nation by 2047. The economy needs to grow at about 8% for about a decade or two to achieve that goal.