smartcybers786@gmail.com 
US President Donald Trump meets with Indian Prime Minister Narendra Modi at the White House in Washington, DC, February 13, 2025. — Reuters
#Modi #offers #tax #cuts #Trumps #tariffs #threaten #India
Experts say that Indian Prime Minister Narendra Modi’s daily relief can provide billions of dollars in annual relief to reduce consumption taxes on everyday goods and can increase the demand for the economy for US traumatic rates.
US President Donald Trump has threatened to double the import duty duty on India from 25 % to 50 % to punish New Delhi for buying oil from Russia, adding that the purchase helps Moscow fund Ukrainian attack on Ukraine.
This potential move has clouded the world’s fifth largest economy, with Indian exporters warning about sinking orders and severe job losses.
New Delhi has termed Washington’s move “unfair, unpredictable and irrational” but is already trying to catch the shock, Modi promised to “reduce tax burden on the common man” last week during the annual speech for Mark India’s independence.
Economists say that everything will be cheaper for consumers, ranging from its proposed deductions to small cars to air conditioners in the goods and services tax (GST).
Currently, the tax runs under a complex four -level structure, with a rate of five to 28 %.
Under Modi’s reforms, most of the goods will come to two degrees, they will be taxed at five or 18 %.
The Indian leader has described the change as a “Diwali gift”, which is a reference to the annual Hindu festival of light when consumers spread to everything from gold and clothing to consumer electronics.
‘Massive savings’
The impact on Trump’s prices-and the general Indians will depend on how much progress has been made to the Russian-Ukrainian peace deal, and can New Delhi secure alternative oil suppliers before the US president’s last date.
But experts say Modi’s tax reforms can help a reduction between $ 13 billion and $ 17 billion to collect tax reforms.
MC Global Financial Services Analysts described the policy as “welcome reforms to enhance domestic use”.
He estimated that the majority of items subject to a 28 % rate will be taxed at 18 %, while the “almost all” in the 12 TIR level will go into 5 % of the brackets.
Analysts from Moti Lal Oswal, an Indian financial services firm, said these changes would benefit the widespread fields in homes and the “valuable savings”.
The fate of this proposal is eventually with the GST Council, including representatives of the state governments and has struggled to achieve extensive consensus in the past.
According to experts, if approval is granted, deductions will put pressure on public financial matters.
However, he said he could also help Modi’s credentials to remove and brush Modi’s credentials among the middle class.
The proposal comes before the expected elections in Bihar later this year, a large, Hindu -majority state of 130 million people, an important political battlefield for Modi.
“At present, 50 % of the popular economic story of Trump is taxed and how the US is seeing a blow to India’s relations.”
“GST reform is a strong reaction from Modi in this context,” said Mohan.
But, he added, it was also acknowledged that India’s economy has not worked for a “low -income class” for some time.
US India Trade Talks
Although economists have demanded the restoration of the GST system for years, Modi’s surprise has come to light when US India relations have come to the lowest level in multiple decades.
Economists estimate that if the two countries fail to sign a trade agreement, Trump’s prices may be less than 6 % of India’s GDP growth in this financial year, which is less than the central bank’s estimated 6.5 %.
According to the Trade Intelligence Firm’s Perler, New Delhi’s stance on import of Russian oil will be clear by the end of September as according to the Trade Intelligence Firm’s Pulsar, most of the cargo was contracted before Trump’s threats.
Kepler analyst Sutt Ritulia told AFP that when Indian refiner is showing “growing interest” in the United States, West African and Latin American Khasid, this is more indicative of a “more flexible, deliberate ax.”
“Unless there is a clear policy change or permanent change in commercial economics, Russian flow remains the main part of India’s raw basket,” said Ritulia.
When the clock is decreasing on tariff growth, the state of US trade talks is uncertain.
New Delhi says it is committed to attacking an agreement, but Indian media reports show that US negotiators have postponed the August -August plans in the Indian capital.
