03.09.202504:25:37UTC+00India Plans GST Cuts on Over 400 Items to Boost Demand

Indian state and federal ministers are set to convene for a two-day session beginning on Wednesday to deliberate on the most significant reform of the Goods and Services Tax (GST) in eight years. This initiative seeks to invigorate domestic demand amidst the challenges posed by US tariffs. Spearheaded by Finance Minister Nirmala Sitharaman, and incorporating ministers from all Indian states, a GST panel will assess a proposal to cut taxes on over 400 products, ranging from hair oil to compact cars, as reported by Reuters. Alongside the personal income tax reductions revealed in February, these GST cuts aim to stimulate consumption in Asia's third-largest economy, which posted a robust 7.8% growth in the quarter ending in June. The reform is expected to drive sales for fast-moving consumer goods companies such as Hindustan Unilever and Godrej Industries, as well as for consumer electronics manufacturers like Samsung Electronics and Sony. Automakers such as Maruti and Toyota Motor are also expected to benefit significantly from the changes.