India significantly cut taxes on hundreds of goods, simplifying its Goods and Services Tax (GST) structure into two main slabs of 5% and 18%, effective September 22. This move aims to boost domestic consumption and mitigate the potential economic impact of steep US tariffs.

• The tax cuts are expected to lead to revenue losses of up to $6 billion for the Indian government.
• Finance Minister Nirmala Sitharaman announced the changes, which will make items like school supplies and ACs cheaper, while imported liquor and premium cars will become costlier.
• The new rates coincide with India's festive season, when sales of electronic goods are expected to surge, and follow a $12 billion income tax giveaway earlier this year.