Prime Minister Narendra Modi has promised major tax cuts to soften the blow of new US tariffs that threaten millions of Indian jobs. Speaking on Independence Day, he pledged a simplified goods and services tax (GST) system and urged citizens to back his “Made in India” call for self-reliance, according to BBC.
The reforms, paired with earlier income tax cuts, are expected to boost consumption by putting more money in people’s hands. Analysts say this could lift demand for everyday goods, cars, housing and support economic growth despite global headwinds.
Markets have reacted positively, with India also securing its first sovereign rating upgrade in 18 years. But experts warn that strained US-India trade ties and slowing growth remain serious challenges, BBC reported.
