Maruti Suzuki India Ltd’s latest management commentary has spurred hopes of brighter days after the September quarter (Q2FY26).
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India’s GST rate cuts have sent car sales zooming to record highs, hinting at a revival in market demand that’s more than a festive season blip. Overall GST collection data looks strong too. But is it too early to celebrate?
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GST reforms have boosted consumer spending during the festive season, with an 8.5% increase in sales compared to last year, amounting to ₹6 trillion. Major tax cuts led to increased demand for cars, kitchenware, and other goods, though some businesses faced supply chain disruptions.
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The PMI rose to 59.2, indicating expansion, though external sales grew slowly. Manufacturers remain optimistic about future demand and production amid softening input prices.
Read MoreEvery day, two narratives emerge on India’s GST (goods and services tax) registration portal. The first belongs to Rajesh, a small manufacturer in Pune, who spends three days downloading a utility bill copy from online portals, locating, and scanning his rent agreement, compiling identification documents, and finally uploading them on the GST registration portal
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The MSME sector demonstrated strong growth during the July-September quarter. While external challenges such as Trump tariffs moderated optimism, the outlook remains positive, fueled by government measures and anticipated domestic demand during the festive season.
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Source: https://taxguru.in/goods-and-service-tax/gst-rationalisation-boosts-karnatakas-growth-story.html
Recent GST rate rationalisation is set to significantly boost Karnataka’s diverse economy by reducing tax rates across agriculture, manufacturing, and traditional crafts. Key changes include a cut to 5\% GST on instant coffee, which accounts for of India’s output, making the product cheaper and supporting small growers and exporters.
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Muted demand and higher costs tripped up the shoemaker in Q2FY26, but festive sales and premium brands may help it regain pace.
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For decades, India fought one great battle—hunger. We built ration shops, expanded food programmes and ensured no child went to bed hungry. Those efforts worked. In one generation, poverty at the $3-a-day line has plunged from nearly half the population in 2004 to below 5% today. Millions of families that once struggled for daily calories now have full plates. But victory over scarcity has brought a new problem.
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India’s economy is showing strong growth amid cooling prices. As the finance ministry’s September update notes, private consumption and investment are looking up. Where today’s global trade storm leaves our export prospects, though, remains a big question.
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