India’s Chief Economic Adviser, V. Anantha Nageswaran, has warned that newly imposed 50% U.S. tariffs on Indian exports might shave 0.5–0.6% off India’s GDP in the current financial year. He emphasized that the risk could deepen if the tariffs remain longer. Despite this headwind, robust growth in Q1 and supportive domestic policies help retain the […]
In a significant move towards strengthening India’s indirect tax system, Union Finance Minister Nirmala Sitharaman has written to State Finance Ministers, expressing her gratitude for their cooperation and contribution to the ongoing Goods and Services Tax (GST) reforms. Since its rollout in 2017, GST has been a landmark reform in India’s taxation structure, aimed at
India’s Goods and Services Tax (GST) journey has been nothing short of transformative. Introduced in 2017 as GST 1.0, it replaced a complex web of indirect taxes with the principle of “One Nation, One Tax.” Fast forward to September 2025, Finance Minister Nirmala Sitharaman rolled out GST 2.0, a historic reform that simplified tax structures
The Union Finance Minister Nirmala Sitharaman has announced a major reform in India’s Goods and Services Tax (GST) structure, calling it the “Next-Gen GST”. This historic revamp simplifies the earlier four-tier tax system (5%, 12%, 18%, 28%) into just two standard rates—5% and 18%—along with a 40% demerit rate for luxury and sin goods. The
Tamil Nadu Finance Minister Thangam Thennarasu has stressed the need for the Union Government to safeguard the fiscal autonomy and revenue stability of States while rationalising the Goods and Services Tax (GST) structure. Balancing Reform with Fiscal Federalism The Centre is exploring options to rationalise GST rates to simplify the indirect tax system and boost
Indian Leather Industry: 80% of Business Hinges on Exports—Here’s What’s Driving the Surge India’s leather and footwear sector stands as a global powerhouse—exporting nearly 80% of its production, making it a critical pillar of the economy. In the fiscal year 2024–25, export revenues soared by 25% year-on-year to reach US $5.7 billion (approx. ₹48,667 crore),
What’s happening now: The GST Council, chaired by Finance Minister Nirmala Sitharaman, has begun a two-day meeting (Sept 3–4) to consider the biggest overhaul of GST since 2017. At the heart of the plan is rate rationalisation—moving from the current 4 slabs (5%, 12%, 18%, 28%) to two main slabs: 5% and 18%, with a
India’s federal and state finance ministers are convening from September 3–4 to discuss a sweeping overhaul of the GST system. The focus: potential tax reductions on more than 400 items and proposed hikes on high-end goods—moves that could reshape consumption patterns and indirect tax revenues. Given GST’s far-reaching impact on prices, trade, and inflation, any
Though India’s GDP growth clocked in at a healthy 7.8%, a recent analysis urges caution: the momentum seems fuelled more by government spending than sustainable private demand. Nominal GDP figures are only modestly above real growth, hinting at suppressed inflation and lacklustre consumer activity. The report flags weak urban demand amid expectations of lower GST
The Indian rupee plunged to an all-time low against the US dollar on 1 September, shaken by mounting trade tensions and tariffs imposed by the U.S. This depreciation reflects heightened concerns around export headwinds and global policy uncertainty. A weaker rupee can increase input costs for import-dependent sectors and push inflation higher, while benefitting exporters
