BENGALURU: Prime Minister Narendra Modi on Friday said that the expansion of the middle class and the emergence of a new aspirational class, whose rising expectations were generating demand across sectors, were becoming major drivers of India's economic growth.
Addressing a gathering at the Indian Institute of Management Bangalore (IIMB) after launching and dedicating infrastructure projects in Karnataka, he said the neo-middle class wanted better homes, consumer durables, two-wheelers, quality education, healthcare and opportunities to travel and experience new things.
These aspirations, he said, were creating fresh demand and opening up employment opportunities in sectors ranging from automobiles and electronics to tourism and services.
"This neo-middle class is becoming a major engine of growth for the Indian economy,” Modi said, adding that the interests of this expanding section of society, particularly in Bengaluru and Karnataka, were among the Centre's priorities.
He said the government was working to increase the savings and purchasing power of middle-class families.
Citing the exemption of annual income up to Rs 12 lakh from income tax, changes in TDS rules, the next-generation GST reforms and reduction in GST on health and life insurance, he said the measures were intended to leave more money in people's hands and enable them to fulfil their aspirations while contributing to economic growth.
Modi said the infrastructure projects worth more than Rs 15,000 crore being launched in Karnataka would give fresh momentum to the state's development and strengthen Bengaluru's position as a technology and economic hub.
“Better connectivity creates new opportunities for progress, employment and industry. When these opportunities reach every section of society, the fight against poverty also becomes stronger,” he said, adding that nearly 50 crore people had come out of extreme poverty in the country in recent years.
The projects cover metro and railway connectivity, renewable energy transmission and energy security.
Modi dedicated the new elevated section of the Bengaluru Metro's Pink Line, saying it would improve connectivity to IIMB and several educational institutions as well as major business, technology and commercial centres. It would save commuters time and money, he said.
Highlighting the expansion of Namma Metro, he said its network had grown from 17 km in 2014 to more than 100 km, making Bengaluru the third urban region after Delhi-NCR and Mumbai Metropolitan Region to cross the 100-km mark. He also said Bengaluru, which accounted for more than one-third of India's IT exports, was a major engine of innovation and economic growth.
The Centre was committed to expanding modern public infrastructure across the Bengaluru region, he added.
On railway development, Modi said Karnataka's railway budget allocation had increased ninefold over the past decade.
Four railway stations — Chamarajanagar, Chikkamagaluru, Sakleshpur and Subrahmanya Road — had been redeveloped under the Amrit Bharat Station scheme.
He also referred to railway doubling and electrification works and flagged off the Bengaluru-Mangaluru-Madgaon Vande Bharat Express, which would provide semi-high-speed connectivity between Bengaluru, coastal Karnataka and Goa.
Emphasising the importance of energy security amid the conflict in and around Iran and the Gulf region, he said the country had strengthened its capacity to produce petroleum products and LPG, developed crude oil storage facilities and expanded solar, hydro and wind power generation.
The energy-related projects in Karnataka, he said, would strengthen the country's energy security.
The LPG storage facility would add 80,000 metric tonnes of capacity, while the Devangonthi marketing terminal would improve the supply of petrol, diesel and aviation fuel.
The compressed biogas plant in Bengaluru would produce around 13 tonnes of biogas daily, besides improving waste management and reducing expenditure on natural gas imports.
He said India's renewable energy capacity had crossed 300 GW. Under the PM Surya Ghar Muft Bijli Yojana, more than 60 lakh households across the country, including over 40,000 in Karnataka, had installed rooftop solar plants.
The Centre had provided assistance of around Rs 80,000 to each household, he said.
Under the PM-KUSUM scheme, more than eight lakh solar pumps were being used to support irrigation in Karnataka.
Governor Sudha Yadav, Chief Minister D K Shivakumar, Minister Krishna Byre Gowda and Bengaluru South MP Tejasvi Surya were present.
PM Modi also paid tribute to Bengaluru's presiding deity 'Annamma' and Nadaprabhu Kempegowda.
Recalling that the late Ananth Kumar's death anniversary fell on Thursday, he said the former Union minister had a special attachment to the region and paid respects to him.