India plans to cut GST on 175 products, including consumer goods, small cars, and export items, to boost domestic consumption and support manufacturers.
India plans to reduce the goods and services tax (GST) on about 175 products, including shampoos, toothpaste, small cars, air conditioners and electronics.
The cuts aim to make everyday items more affordable, boost domestic consumption, and support farmers and manufacturers amid slower exports to the US.
The GST council will finalise the list of items on 3–4 September. Small hybrid cars and motorcycles with an engine capacity of under 350cc will be subject to lower taxes, while larger vehicles may face higher rates. Export-related products, such as fertilisers, tractors, and textiles, will also receive tax cuts. Some items, including coal, betting services, and soft drinks, will continue to be subject to existing levies.
Earlier, the US’s tariffs on Indian imports under Executive Order 14329 took effect on 27 August 2025.
