US tariffs: GST reform could soften the tariff blow; BMI GDP growth outlook, lowering forecasts to 5.8% for FY2025-26

India’s proposed GST reforms aim to soften the impact of US tariffs and boost household spending, according to BMI. The government plans to lower tax rates on commonly used items, potentially offsetting the effects of 50% US tariffs. While GST is a major revenue source, the reform’s fiscal impact is expected to be mild.