India's economic growth story has been driven in large part by urban consumption since the pandemic, but the economy is slowing. Modi is now hinting at tax cuts for the middle class ahead of budget talks.

India’s government is under pressure to turn around a slowing economy but with little room to manoeuvre as it prepares to present one of the most consequential budgets since Prime Minister Narendra Modi came to power more than a decade ago.

Broad policy reset needed to address stagnant consumption, boost investment and drive far-reaching reforms, economists say.