{"id":397044,"date":"2025-09-04T10:53:19","date_gmt":"2025-09-04T10:53:19","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/397044\/"},"modified":"2025-09-04T10:53:19","modified_gmt":"2025-09-04T10:53:19","slug":"india-to-cut-taxes-on-many-consumer-goods-following-steep-us-tariffs","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/397044\/","title":{"rendered":"India to cut taxes on many consumer goods following steep US tariffs"},"content":{"rendered":"

NEW DELHI (AP) \u2014 India will cut taxes on hundreds of consumer goods ranging from air conditioners to small cars to bolster local consumption, its government said Wednesday, as New Delhi moves to cushion its economy from the blow of steep U.S. import tariffs<\/a>. <\/p>\n

The announcement comes after U.S. President Donald Trump introduced new tariffs last month that threaten a chunk of New Delhi\u2019s outbound shipments to its world\u2019s biggest market.<\/p>\n

Finance Minister Nirmala Sitharaman told a news conference late Wednesday that the reduced goods and services tax, or consumption tax, have been approved by an all-powerful government panel. They will take effect on Sept. 22, the first day of a major Hindu festival that precedes the festival of lights, Diwali, in October.<\/p>\n

The government\u2019s latest overhaul cuts the consumption tax tiers to a two-rate structure of 5% and 18% instead of the previous four tiers of 5%, 12%, 18% and 28%, according to the Finance Ministry. <\/p>\n

A majority of the goods will attract lower taxes, though a special rate of 40% is proposed on a select few items such as high-end cars, tobacco and cigarettes. No tax would apply on purchases of life and health insurance.<\/p>\n

Reducing the taxes is a part of Indian Prime Minister Narendra Modi\u2019s broader plan to insulate the economy from the shock of U.S. tariffs, expected to hit an estimated $48.2 billion worth of Indian exports.<\/p>\n

\u201cThe wide-ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses,\u201d Modi said in a post on the social platform X.<\/p>\n

Trump last month imposed an additional 25% tariff<\/a> on Indian goods in response to its unabated purchase of Russian oil, bringing the total tariffs to 50% and straining ties between the world\u2019s two biggest democracies.<\/p>\n

India\u2013U.S. trade relations have expanded in recent years but remain vulnerable to disputes over market access and domestic political pressures. Officials have warned the new duties could make shipments to the U.S. commercially unviable, triggering job losses and slower economic growth. <\/p>\n

To cushion the impact, India is also working on expanding its exports to other world markets such as Europe, Latin America, Africa and Southeast Asia.<\/p>\n

Trade negotiations underway with the European Union have gained renewed urgency as India works to reduce its dependence on the U.S. market. The government is also discussing financial incentives that would include favorable bank loan rates for exporters.<\/p>\n","protected":false},"excerpt":{"rendered":"NEW DELHI (AP) \u2014 India will cut taxes on hundreds of consumer goods ranging from air conditioners to…\n","protected":false},"author":2,"featured_media":397045,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5311],"tags":[11410,51,94475,32,5211,4179,5212,730,73813,3058,22817,50003,94584,285,30275,5214,1523,49,978,659,263,20934],"class_list":{"0":"post-397044","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-united-states","8":"tag-asia-pacific","9":"tag-business","10":"tag-consumer-products-and-services","11":"tag-donald-trump","12":"tag-economic-policy","13":"tag-general-news","14":"tag-government-policy","15":"tag-india","16":"tag-india-government","17":"tag-international-trade","18":"tag-narendra-modi","19":"tag-new-delhi","20":"tag-nirmala-sitharaman","21":"tag-politics","22":"tag-south-asia","23":"tag-tariffs-and-global-trade","24":"tag-taxes","25":"tag-united-states","26":"tag-us","27":"tag-usa","28":"tag-world-news","29":"tag-x-corp"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115145657865255296","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/397044","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=397044"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/397044\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/397045"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=397044"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=397044"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=397044"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}