The BJP, which secured 303 seats in the Lok Sabha in 2019, saw its numbers drop to 240 in 2024, forcing it to rely on coalition partners to form the government for a third term. Party leaders believe this setback was due, in part, to voter apathy among the salaried middle class, which had expressed frustration over rising costs and stagnant disposable income.

A senior BJP functionary noted that while the Opposition’s “false campaign” on constitutional issues impacted the elections, middle-class discontent also played a role. “Many salaried individuals felt they had less money in hand, but under PM Modi’s leadership, this concern has now been addressed. The party has shown it listens to the people,” the leader said.

In Bihar, where elections are scheduled for later this year, the budget included multiple infrastructure and employment initiatives aimed at boosting the BJP’s coalition government with the Janata Dal (United). Though no specific schemes were introduced for Delhi due to the ongoing model code of conduct, the increased tax exemption limit of ₹12 lakh is expected to appeal to the city’s large salaried workforce.

Prime Minister Narendra Modi described the budget as a “people’s budget,” while BJP leaders emphasized that it reflected the party’s attentiveness to public sentiment. The Rashtriya Swayamsevak Sangh (RSS) and BJP’s grassroots cadres had repeatedly flagged concerns over inflation and rising costs, pushing for tax relief as a crucial step toward easing middle-class financial strain.

“In the last decade, policies focused on infrastructure, employment generation, and economic growth. However, there was growing dissatisfaction among middle-class voters, who felt overlooked in favor of schemes for the poor, youth, farmers, and women,” said a BJP leader.

A Lokniti-CSDS study in 2024 revealed that BJP’s support among middle and upper-middle-class voters declined from 38% in 2019 to 35% in 2024. This data reinforced the need for policy adjustments to win back this crucial segment of the electorate.

Union Home Minister Amit Shah echoed this sentiment, stating, “The middle class is always in PM Modi’s heart. The zero-income tax policy for incomes up to ₹12 lakh will greatly enhance their financial well-being.”

Another BJP leader highlighted the necessity of balancing welfare policies for lower-income groups with measures that benefit the middle class. “Free rations, medical care, and LPG subsidies expanded our support base, but the middle class felt neglected. While they make up 20-30% of voters, their influence is significant. The 2004 elections showed how a dissatisfied middle class could impact outcomes,” the leader said.

Organizations affiliated with the RSS played a pivotal role in shaping the budget, communicating key concerns from various labor unions, MSME groups, and farmer collectives. These groups emphasized tax simplification, gig worker insurance, expanded agricultural support, and policies promoting domestic manufacturing under Atmanirbhar Bharat.

An RSS official acknowledged the government’s responsiveness to these demands. “We conveyed the ground reality—there was a strong call for tax restructuring and middle-class benefits. It is encouraging to see these issues addressed in the budget,” he said.

As assembly elections in Delhi and Bihar approach, the BJP is betting on its middle-class tax relief measures to rebuild voter confidence and strengthen its political standing in key states. Whether this strategy translates into electoral gains remains to be seen.

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Tesla’s proposed strategy for India involves initially importing kits for assembly through the Completely Knocked Down (CKD) route, making the vehicles more affordable for Indian consumers. The price for Tesla’s upcoming EV is expected to be around INR 20 lakhs, significantly lower than their existing models. This move is a part of Tesla’s mission to make electric vehicles accessible to a broader audience in India.

Elon Musk recently met with Indian Prime Minister Narendra Modi, signaling a strong partnership between Tesla and the Indian government. This collaboration is expected to pave the way for Tesla’s operations in India, with plans to set up a manufacturing plant potentially in states like Gujarat, Maharashtra, or Tamil Nadu. The government is reportedly considering new policies to incentivize such investments, which would require Tesla to commit to sourcing components locally and possibly establishing a robust service and support network across the country.

Tesla’s initial entry might involve importing fully built units to test the market and gather data on how their EVs perform in Indian conditions. Over the next two years, Tesla aims to establish a full-fledged manufacturing plant, which would not only cater to the Indian market but also serve as an export hub for right-hand drive markets.

The Indian EV market, though currently small, is rapidly growing, with the government targeting a significant increase in EV adoption by 2030. Tesla’s entry is expected to accelerate this growth, introducing competition and innovation into the market, which is currently dominated by local players like Tata Motors.

These tweets underscore Elon Musk’s commitment to bringing Tesla to India and his recent interactions with the Indian government. Tesla’s entry is poised to be a game-changer for the Indian EV landscape, offering a mix of affordability and cutting-edge technology.

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