August 19, 2025

Hold tight, India is ready to spice up its economy! Prime Minister Narendra Modi just announced a plan to cut consumption taxes, and it’s causing quite a buzz. The big news? India will shrink the goods and services tax (GST) categories from four down to just two. This simplifies things, making life easier for everyone — consumers, small business owners, and many sectors across the board. Officials in New Delhi shared during the weekend that these clever changes are designed to give a strong boost to the economy. But here’s the real magic: the government expects these tax cuts to help growth without taking a hit to the fiscal deficit. That means the government's money matters stay healthy even as they cheerlead economic growth. Why this move now? India is feeling the pressure from rising US tariffs. By tweaking GST, the country hopes to soften the blow and keep its economy humming smoothly. Though the officials spoke on condition of anonymity, their message was clear — the changes will only have a small impact on government revenues but a big win for businesses and shoppers alike. So, ready for simpler taxes and a stronger economy? India’s GST makeover might just be the jackpot everyone’s waiting for!

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Tags: India gst, Tax cuts, Economic boost, Fiscal deficit, Prime minister modi, Us tariffs,