From zero tax for incomes up to ₹12.75 lakh to 11.6 million homes sanctioned under Pradhan Mantri Awas Yojana (Urban), the government claims its 11-year tenure has delivered consistent relief and upward mobility for India’s middle class.
In a detailed document released on Thursday, officials state that the focus has been on simplifying taxes, boosting homeownership, expanding metro connectivity, and improving access to affordable healthcare and digital services.
Senior officials assert that what started in 2014 as a drive to cut red tape and bring governance closer to citizens has now matured into a sustained framework of support for the middle-income population — a segment viewed as the engine of India’s growth story.
Middle-Class Taxpayers See Major Relief
A centrepiece of the 2025–26 Union Budget, the raised tax exemption limit now ensures that those earning up to ₹12.75 lakh annually (with standard deduction) pay no income tax. Government officials claim this benefits crores of salaried professionals and reflects a long-standing commitment to easing financial burdens.
Income Tax Return filings have more than doubled — from 39.1 million in FY14 to 91.9 million in FY25 — a trend the government attributes to simplified procedures, pre-filled forms, and faceless assessments.
Affordable Homes, Smart Cities, and Metro Boom
Officials say urban transformation has been another cornerstone of middle-class empowerment. Over 9270,000 houses have been completed or handed over under PMAY-Urban, with ₹1.69 lakh crore in central assistance already disbursed.
Simultaneously, India’s metro rail network has grown fourfold — from 248 km in 2014 to 1,013 km in 2025 — and daily ridership has crossed 11.2 million. Smart Cities Mission projects, 93% of which are reportedly complete, have reimagined city living with improved roads, integrated surveillance, digital classrooms, and public transportation.
Pension Security and Health Coverage
In a major step for government employees, the new Unified Pension Scheme promises 50% of the last drawn salary as pension for those with 25+ years of service. Officials say the scheme, launched in April 2025, will benefit around 2300,000 central staff and has been adopted by several states.
On the health front, 410 million Ayushman Bharat cards have been issued, and over 85 million hospital admissions have been covered under the scheme. The extension of this coverage to all senior citizens above 70, regardless of income, marks a new milestone.
Jan Aushadhi and Digital Reforms Cut Costs, Time
Jan Aushadhi Kendras — selling medicines at 50–80% discount — now number over 16,400, serving an estimated 10-12 lakh people daily. The government pegs cumulative savings at ₹38,000 crore.
Digitally, Aadhaar-linked services, DigiLocker and the UMANG app have brought over 9 billion government documents online and enabled over 5.95 billion transactions, helping the middle class save time and avoid paperwork.
Skilling India’s Workforce
The government also claims to have equipped over 16.3 million youth with job-ready skills under PMKVY, and placed 4000,000 apprentices through industry linkages.
The number of ITIs has risen by nearly 5,000, with a parallel jump in enrolments.
