Over the past eleven years, the Indian government has asserted its commitment to uplifting the middle class through a series of targeted initiatives and reforms. These efforts, according to the government, have focused on easing financial burdens, improving access to essential services, and fostering economic growth, with the middle class at the heart of the nation's progress.
Tax relief has been a key component of the government's strategy. The government has implemented income tax reforms aimed at leaving more disposable income in the hands of middle-class taxpayers. Notably, the Union Budget 2025-26 introduced a significant change, raising the income threshold for zero tax to ₹12 lakh annually for individuals, excluding special rate income. Besides increasing the income tax threshold, the government has also focused on simplifying the tax system to promote compliance and reduce disputes. Measures such as increased standard deductions and a streamlined reassessment process have been introduced to ease the financial responsibilities of the middle class. These reforms have seemingly boosted tax compliance, with ITR filings more than doubling from 3.91 crore in FY 2013-14 to over 9.19 crore in FY 2024-25.
The government has also focused on enhancing pension schemes to provide financial security for senior citizens. The Unified Pension Scheme (UPS), launched in 2024 and implemented from April 2025, guarantees a minimum monthly pension of ₹10,000 for retirees with at least 10 years of service. For those with longer tenures, the pension can reach up to 50% of their final basic pay. This scheme is expected to benefit a large number of central and state government employees, many of whom belong to the middle class.
Access to affordable housing has also been a priority, with the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 approved to provide financial assistance to urban poor and middle-class families. This initiative aims to facilitate the construction, purchase, or rental of affordable housing in urban areas, with a significant government investment supporting the scheme.
In addition to financial assistance and housing support, the government has focused on improving healthcare access and affordability. The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) has been expanded to include all senior citizens aged 70 years and above, irrespective of income, providing them with health insurance cover. Furthermore, the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP) has significantly expanded the availability of affordable medicines through a network of Jan Aushadhi Kendras, offering generic medicines at discounted prices.
Beyond direct financial benefits and improved services, the government has emphasized infrastructure development and digital transformation to enhance the quality of life for the middle class. The Smart Cities Mission has led to urban upgrades, including improved transportation systems, enhanced education infrastructure, and cleaner cities. Digital initiatives such as Aadhaar, DigiLocker, and UMANG have streamlined public service delivery, reducing paperwork and improving efficiency.
The government has also promoted skill development through programs like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and the National Apprenticeship Promotion Scheme (NAPS), training youth in high-demand sectors and facilitating their transition into the workforce.
Furthermore, initiatives like FASTag for toll payments and the promotion of UPI have contributed to cost savings and convenience for both individuals and businesses. The introduction of UPI has revolutionized digital payments, making them accessible to a wider range of businesses and consumers, and resulting in significant savings for small and medium enterprises.
By implementing these multifaceted initiatives, the government says it has strived to empower the middle class, foster economic stability, and improve the overall quality of life for millions of Indians.
