India Budget 2026: A two-pronged thrust at the policy and regulatory levels provided impetus to consumption in calendar year 2025, as evidenced by robust goods and services tax (GST) collections and uptick in retail credit. While the central government offered income tax relief and rationalised the GST rates, the Reserve Bank of India reduced the repo rate by a cumulative 125 basis points between February and December and materially eased liquidity conditions.