The 'trustworthy' changes for Indian middle class

For India's middle class, economic reforms have manifested in subtle, everyday changes. QR codes at local shops, storing driving licences on phones, crossing toll plazas without stopping, and affordable mobile plans enabling video calls and online classes are all signs of the impact of reforms. Prime Minister Narendra Modi attributes these changes to his government's trust-based approach to reforms, rather than suspicion.

The reforms have touched various aspects of the middle class's lives. In the realm of digital payments, the Unified Payments Interface (UPI) launched in 2016 has revolutionized how transactions are conducted. UPI, which processes an enormous number of transactions daily, has made payments almost invisible to the consumer. They can pay for a coffee, an auto ride, a restaurant bill, rent, or groceries without needing cash or ATM access.

UPI has also transformed small merchants by allowing them to accept digital payments through QR codes.

Income-tax reforms have also benefited the middle class by increasing their disposable income. The effective tax-free income threshold under the new regime was raised to ₹12 lakh in Budget 2025-26, with salaried taxpayers benefitting from ₹12.75 lakh after accounting for the standard deduction. This has given eligible taxpayers more money to spend, save, invest, or use to repay loans.

The reforms have also led to lower tax rates, fewer deductions, and a higher income threshold at which taxpayers start paying tax under the new regime.

The Goods and Services Tax (GST), introduced in 2017, has simplified the indirect tax structure in India. By replacing a fragmented system of central and state taxes with a common national framework, GST has driven lower GST rates, reduced tax components of everyday goods and larger purchases, and promoted a more efficient supply chain.

Additionally, the reforms in the telecommunications sector, such as the Real Estate (Regulation and Development) Act (RERA) and the expansion of mobile connectivity through initiatives like the Jan Dhan-Aadhaar-Mobile (JAM) trinity, have protected homebuyers and expanded access to formal finance for more Indians. These reforms have collectively improved the middle-class experience by reducing risk associated with major financial commitments and increasing internet adoption.