In Budget 2023, FM Sitharaman extended the standard deduction of Rs 50,000 to the new tax regime, which was earlier restricted to the Old Tax Regime, in a bid to make the new tax system more attractive.
"One percentage point reduction in inflation will lead to 64 basis points increase in GDP or 1.12 percentage points increase in PFCE (Private final consumption expenditure) growth. If inflation can be brought down by 1 percentage point, it would be a win win," India Ratings and Research Chief Economist Devendra Kumar Pant said in an interview.