New Delhi, May 1 -- According to a Deloitte report, India's economic trajectory faces two counterbalancing forces that will shape growth outcomes.

The tax incentives introduced in the Union Budget 2025, designed to stimulate consumer spending, serve as a significant positive catalyst.

These incentives, amounting to approximately Rs 1 lakh crore, primarily benefit the middle class and are expected to boost domestic demand.

Deloitte India Economist Rumki Majumdar emphasised that "the tax exemptions announced during the budget will increase disposable income in the hands of the young population with higher income elasticity."

Despite these tax concessions, the report suggests that heightened economic activity should help offset revenue d...