India has rolled out a $20 billion reform package aimed at supercharging domestic consumption—now 60% of GDP—with a simplified GST structure: only two slabs—5% for essentials, 40% on sin goods like cigarettes. This reform, announced on Independence Day (August 15, 2025), is expected to add 0.6% to GDP growth and temper inflation. The market cheered; bonds wobbled. Amid rising U.S. protectionism and a looming 50% tariff threat, the stakes are high.
Keypoints:
domestic push, GST overhaul
, growth booster, geopolitical overhang


India bets big on its own consumers