Modi Urges 'Make and Spend in India' as US Imposes 50% Tariffs
Prime Minister Narendra Modi calls for self-reliance and unveils tax reforms, including income tax cuts and a simplified two-tier GST, to counter US tariffs and boost consumption.
Modi Promotes Self-Reliance
During Independence Day at Delhi’s Red Fort, PM Modi urged businesses to display "Swadeshi" boards and champion "make in India" to offset US President Donald Trump’s upcoming 50% tariffs on Indian exports.
Tax Reforms to Boost Consumption
Modi’s government plans to simplify the eight-year-old Goods and Services Tax into a two-tier system and reduce rates, following a $12bn income tax cut earlier this year. Analysts from Jefferies estimate these measures could inject up to $20bn into consumer spending.
Economic Outlook
Private consumption, accounting for nearly 60% of GDP, has slowed in urban areas due to wage pressures and job losses, despite strong rural demand. Morgan Stanley predicts the tax cuts will revive consumption, support growth and temper inflation amid global tensions and challenging export dynamics.
Key sectors such as scooters, small cars, garments and construction materials are expected to benefit most. UBS analysts note the GST cuts may have a greater multiplier effect than previous corporate tax reductions.
Modi’s blended strategy of tax relief and self-reliance seeks to counter the blow of steep US tariffs by putting more money in consumers’ pockets and bolstering domestic production.
This topic was reported by BBC News.
Explore useful articles in World News as of 26-08-2025. The article titled " Modi Urges 'Make and Spend in India' as US Imposes 50% Tariffs " offers in-depth analysis and practical advice in the World News field. Each article is carefully crafted by experts to provide maximum value to readers.
The " Modi Urges 'Make and Spend in India' as US Imposes 50% Tariffs " article expands your knowledge in World News, keeps you informed about the latest developments, and helps you make well-informed decisions. Each article is based on unique content, ensuring originality and quality.