India’s GDP growth slowed to 5.4% in Q2 2024, the slowest pace in two years, due to weak urban consumption, inflation, stagnant wages, and sluggish private investment. The Reserve Bank of India has revised its growth forecast downward, and the fiscal deficit remains below 5% of GDP.
The government is expected to implement targeted stimulus measures to revive growth while maintaining fiscal prudence to prevent excess borrowing.
✅ Raising the basic tax exemption limit from ₹3 lakh to ₹5 lakh.
✅ Increasing standard deduction for salaried individuals to ₹1 lakh.
✅ More deductions under Section 80C for investments in tax-saving instruments.