Modi provides taxation of India’s economy against Trump’s tensions

Indian markets rallied on Monday when Prime Minister Narendra Modi found a tax reduction, expanded a gift of an internal economy that still faces the US teeth.

Nifty 50 Index advanced 1%and BSE Sensex adds 0.84%. In currencies, the US dollar surrendered 0.18% against Rupee.

In a broad speech on Independence Day on Friday, Prime Minister Narendra Modi is agreed Click to independence and suggested a number of financial reforms. Now New Delhi plans a two-time structure of 5% and 18% with extensive changes in goods and services (GST), and plans to cancel the previous 12% and 28%, imposed on some subjects, on some subjects, on some subjects, on some subjects, some subjects, some subjects, some subjects, some items, on some subjects, on Quoted by Reuters On Friday, a government official. The news was too reported by local media.

“The reforms aim to simplify compliance, low tax rates, and modernise the gst framework to make it more grown-oriented. Industry Executives Expect Measures Such As Ration Burden on Micro, Small and Medium Enterprises (MSMES), Cutting Levies on Essential Goods, and Using Technology-Driven Processes Like Pre-Filled Returns and Faster Refunds to Encourage Investment, “The India Brand. Foundation Said, adding that production, logistics, housing and consumer goods can come out.

The Indian Tsos Industry, which can also become one of the beneficiaries of the new tax policy after sluggish stretch marks in recent months. Sales of India’s Passenger Vehicle, which include cars, added 4.2% in the calendar year 2024, the Indian Car Society – said in January – the slowest growth rate in four years, According to Reuters.

The automatic sector stocks increased during the session on Monday when Maruti Suzuki India added 8.75%and Hyundai Motor India increased by 8.15%.

“I certainly confident in the message, and in the last quarters the Autos sector is a relative delay, so it is not surprising if the sector bounces pretty much,” said James Tom, Senior Director of the Asian Action Investment, said CNBC “inside India on Monday”.

Modi’s tax overhaul may attract the economy of India, which the reserve bank of India believes that in 2025-2026, during the deep geopolitical uncertainty, which started the wide so -called “mutual tariffs” Washington. Washington Introduction of an additional 25% penalty Indian imports – attraction of total duties up to 50% – should take effect at the end of this month.

“India is an internal consumption history. Exports are a relatively small contribution. Thus, it (tax overhaul) can more than compensate that the impact of tariffs,” said Tom Aberdina.

“From the main point of view, absolutely, I think that changes in the GST mode will support the closest for consumption as this happens next year. And consumption in India is quite long, so it is real growth for the economy, if you like, given that India’s economy is so dependent on home use.”

Internal Consumption is “one of the most convincing indicators that investors closely” and “the largest economic growth driver in India”, given 61.4% of GDP in 2024-25 financial year, in 2024-25 years, 2024-25 In a report in August said Deloitte.

“In particular, cities consumption and displacement of luxury costs arise as key pillars of this impetus,” the statement reads.

Meanwhile, India’s ratings and research Private final consumption of India By the end of March 2026, the financial year will expand by 6.9%, overcoming a wider 6.3% -n -nnin GDP growth during this period, at the back of low real wages, decreases in saving households and raising personal loans.

“A sharp decrease in inflation has improved the prospects for stable consumption growth in FY26,” it added. Retail inflation in India has slowed 4.31% in January to it The lowest since 2017 is 1.55% in July.