MODI'S REFORM TRIFECTA FOR RESILIENT BHARAT

THE Modi government's reform trifecta—RBI’s repo rate cuts, sweeping changes in Goods & Services Tax (GST 2.0), and a revised income-tax slab regime —are acting as a lever for citizen prosperity.

- POOJA TEOTIA

Against a backdrop of rising geopolitical uncertainty, trade headwinds, and resistance to globalization, these reforms aim not just to boost consumption but to build economic resilience. For the middle class and broader sections of the society, the gains are tangible and timely.

Unlike earlier NDA alliance governments that focused mainly on supply-side stimulus such as ramping up investment in infrastructure to create long-term multiplier effects, the current reform agenda pivots strategically towards demand-side economics.

By putting more disposable income directly in citizens’ hands through revised tax slabs and GST rationalisation, the government acknowledges a fundamental macroeconomic reality. With private investment subdued due to global uncertainties, government spending constrained by fiscal limitations, and exports dampened by protectionist trade policies and tariff wars, consumption emerges as the most reliable engine for sustaining GDP growth. In this context, the triad of reforms under what is now being referred to as Modi-nomics isn’t just timely — it’s necessary.

The Reserve Bank of India’s three repo rate cuts in 2025 — amounting to a cumulative 100 basis points — have begun rippling through the economy. With easing inflation, the RBI aims to make credit cheaper, ease borrowing, and boost consumption demand.