India's Tax Overhaul: A Bold Move to Boost Economic Growth
India plans a significant tax reduction on 175 items to stimulate domestic consumption and counter strained U.S. trade ties. The strategy includes lowering GST on numerous consumer goods and hybrid cars. The measure aims to increase farm incomes, encourage local manufacturing, and invigorate the automotive market.
In a substantial restructuring of its taxation strategy, India plans to cut consumption tax by at least 10 percentage points on almost 175 products, sources reveal. This move is spearheaded by Prime Minister Narendra Modi, who seeks to bolster economic growth amid trade tensions with the United States.
The Goods and Services Tax reform will see notable reductions on consumer items like shampoos and hybrid vehicles, boosting companies such as Hindustan Unilever and Godrej Industries. The move comes in tandem with Modi's August Independence Day announcement, emphasizing cheaper daily products for Indians.
While the GST council, led by Finance Minister Nirmala Sitharaman, finalizes details, the reform aims to boost domestic consumption, raise farm incomes, and support self-reliance among manufacturers. Key sectors like automotive and textiles stand to benefit, though some industries will experience increased tax rates to maintain revenue balance.
(With inputs from agencies.)
ALSO READ
The Fragile Pillars of 7.8% Economic Growth: Nomura Insights
Ethanol Fuel: Driving Sustainability and Economic Growth
Bank of Mexico Revises Economic Growth and Inflation Forecasts
Bank of Mexico Adjusts Economic Growth and Inflation Forecasts Upward
Digital transformation bridges regional disparities, driving sustainable economic growth
Google News