Finance
GST reforms could add Rs 20 lakh crore to GDP: Ashwini Vaishnaw
Union Minister Ashwini Vaishnaw announced upcoming GST and income tax reforms. These changes are expected in the 2025-26 budget. The reforms aim to boost India's economy significantly. Vaishnaw clarified that these reforms are unrelated to US tariffs. He highlighted the potential for increased consumption to drive GDP growth.
GST Diwali Dhamaka has a catch, but govt is watching
The government is closely monitoring businesses to ensure that the recent GST rate cuts reach consumers, especially during the festive season. Ministries are collecting price data and urging companies to voluntarily pass on the benefits. While some industries have pledged to reduce prices, concerns remain about full transmission due to factors like existing inventory and lack of consumer awareness.
GST reforms will cause Rs 3,700 crore revenue loss to govt: SBI report
SBI's research indicates that GST reforms, including rate reductions, will result in a minimal revenue loss of Rs 3,700 crore, contrasting with the government's estimate of Rs 48,000 crore. The GST Council's move to a two-tier structure is expected to positively impact the banking sector through cost efficiencies.
RBI panel on financial stability reviews US tariff impact, financial inclusion efforts
The Financial Stability and Development Council convened to address potential economic challenges arising from US tariffs and geopolitical tensions. Discussions centered on simplifying KYC procedures and advancing financial inclusion initiatives outlined in the National Strategy for Financial Inclusion 2025-30. The council emphasized coordinated regulatory efforts to bolster financial sector resilience and closely monitor emerging risks.
Money markets, forex and G-Secs deals to remain closed on September 8: RBI
The Reserve Bank of India (RBI) has announced that financial markets, including government securities, foreign exchange, and money markets, will be closed on September 8, 2025, due to a public holiday declared by the Maharashtra government. Consequently, all settlements due on that day will be postponed to September 9, 2025, and the markets will be operational on September 5, 2025.
GST collections may dip initially, but festive demand will offset: CBIC chief
India's CBIC anticipates a temporary dip in GST collections post the September 22 overhaul, as businesses utilize accumulated ITC. However, festive demand is expected to boost sales. The GST department is collaborating with industries for a smooth transition to the new tax structure, which consolidates slabs and introduces a 40% rate for specific goods.
The art of consensus: How a divided India came together for GST
The GST Council is meeting to discuss potential rate changes, including a two-slab structure and a luxury item tax. States are seeking revenue loss compensation as the Centre plans to end the compensation cess. The original GST rollout in 2017 was a landmark achievement of political consensus, uniting India through bipartisan cooperation.
ET Graphics | G 2.0: A reform story
The Goods and Services Tax Council is set to commence a two-day meeting on Wednesday to discuss significant reforms to the GST structure, which was implemented eight years ago. Prime Minister Narendra Modi has called the proposed changes a 'Diwali gift,' as the Centre aims to lessen the tax burden on the general public and simplify compliance procedures for businesses.
States to gain from GST rate rationalisation: Report
An SBI Research report projects states to be 'net gainers' from the proposed GST rate rationalization, with revenue exceeding ₹14.10 lakh crore this fiscal year. While an initial dip is possible, states are expected to gain ₹10 lakh crore in state GST and ₹4.1 lakh crore through devolution in FY26.
SBI to states: Don’t fear PM Modi’s Diwali GST gift, you’ll still be net gainers
State Bank of India projects Indian states will remain net gainers from GST, even with rate rationalisation, due to revenue sharing mechanisms. This contradicts concerns of revenue loss expressed by some states. The bank suggests utilising the compensation fund surplus to offset potential losses from rate adjustments.
Must Watch
26 MoUs worth Rs 7,020 crore signed during Germany visit, will generate over 15,000 jobs: TN CM Stalin
During his visit to Germany, Tamil Nadu Chief Minister MK Stalin secured 26 MoUs worth Rs 7,020 crore, expected to generate over 15,000 jobs in the state. Key agreements were signed with companies like Knorr-Bremse, Nordex Group, and ebm-papst, focusing on sectors like railway components, renewable energy, and electric motors.
Account Aggregator ecosystem to unlock new frontiers in formal credit access: Finmin
The Account Aggregator (AA) ecosystem, launched in 2021, is rapidly expanding, fostering secure, consent-based financial data sharing. With over 2.2 billion accounts enabled and millions of users linked, it strengthens India's digital public infrastructure. Recognized during India's G20 presidency, AA is poised to boost formal credit access, particularly for MSMEs, contributing to India's Viksit Bharat vision.
Rs 2000 notes worth Rs 5,956 crore still in circulation: RBI
Even after the Reserve Bank of India withdrew Rs 2000 notes, a notable amount remains in circulation. The value of these notes still circulating is Rs 5,956 crore. Since the withdrawal announcement on May 19, 2023, a significant portion of the notes has been returned. The RBI continues to offer exchange and deposit facilities at its 19 issue offices.
Income growth, demographics and awareness push Indians to opt for finances over physical assets: Goldman Sachs
India is witnessing a growing trend of households shifting towards financial assets due to rising incomes and improved financial access, although it lags behind other nations. Goldman Sachs projects household financial savings to increase to 13% of GDP over the next decade, potentially reaching USD 9.5 trillion in inflows.
Pvt capex likely to rise 21.5% to ₹2.67 lakh crore in FY26: RBI
A Reserve Bank of India article forecasts a 21.5% surge in private sector capital investment, reaching Rs 2.67 lakh crore in 2025-26. This growth is propelled by strong macroeconomic factors and a potential policy rate cut. Indian firms are entering the fiscal year with improved financial health and diversified funding, fostering a conducive environment for investment, particularly in infrastructure.
Govt issues notification for fast pacing 100% FDI in insurance
The finance ministry has issued a notification to facilitate 100% foreign investment in the insurance sector, pending parliamentary approval. The amendment replaces the existing 74% limit with provisions stipulated by the Insurance Act, 1938, allowing foreign investment through the automatic route, subject to IRDAI verification. This move aims to unlock the sector's potential and boost its projected 7.1% annual growth.
