As the impact of US tariffs continues to pressure global trade, India is taking bold steps to boost its domestic economy. The Indian government recently approved significant cuts in consumption taxes on hundreds of consumer goods, aiming to encourage spending and invigorate local demand.

This move comes at a crucial time when tariffs imposed by the US have created uncertainties for exporters and manufacturers alike. By lowering taxes, India hopes to offset some of these challenges and provide relief to consumers.

The tax reductions are expected to lead to a combined revenue loss of approximately 480 billion rupees for federal and state governments. Despite this short-term dip in tax income, policymakers believe the boost to consumption will ultimately support economic growth.

Starting from September 22, new lower tax rates will be implemented across a wide range of essential and non-essential items. Shoppers in cities like Amritsar have already started to feel the effects, with more affordable prices helping to spur buying activity.

This strategic tax cut highlights India’s commitment to strengthening its internal market as external trading conditions become more complex. By making everyday goods cheaper, the government aims to maintain momentum in consumption-driven growth.

Keep an eye on how these tax changes reshape consumer behavior and economic trends in the coming months. For shoppers and businesses alike, this policy shift is a welcome development in uncertain global times. Read more