By Nikunj Ohri, Shivangi Acharya and Sarita Chaganti Singh NEW DELHI (Reuters) -India slashed personal tax rates in its annual budget on Saturday, as the world's fifth largest economy focuses on boosting domestic demand amid uncertainty over the global economic outlook due to potential new tariff barriers.

India's economic growth story has been driven in large part by urban consumption since the pandemic, but the economy is slowing. Modi is now hinting at tax cuts for the middle class ahead of budget talks.

Indian Prime Minister Narendra Modi faces the challenges of reviving growth and giving relief to a middle class hit by rising living costs, while also preparing for an uncertain year of global trade,