India has announced massive tax cuts on hundreds of consumer goods — including small cars and air conditioners — in a bid to boost domestic demand amid global economic headwinds. The government is simplifying the GST (Goods and Services Tax) structure to just two slabs (5% and 18%) for most items, which could significantly reduce costs for lower and middle-income buyers.
This reform is not just about tax relief: it’s a broader economic strategy to stimulate consumption, strengthen demand, and shield the Indian economy from external shocks like tariffs. By making consumer goods more affordable, the government hopes to spark spending, support local manufacturers, and deepen financial inclusion.
