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As India braces for the upcoming monetary policy review, SBI Research has recommended a 25 basis points (bps) cut in the repo rate , citing benign inflation and global headwinds. While some economists expect a status quo, the debate underscores the delicate balance between inflation management, growth, and global shocks like US tariffs. SBI Research: Why a Rate Cut Now? According to SBI Research, there is both “merit and rationale” for the Reserve Bank of India (RBI) to reduce the repo rate by 25 bps. The key reasons include: Retail inflation under control , with expectations that it will remain below the RBI’s target of 4%. GST rationalisation measures , which are expected to keep prices suppressed. Impact of 50% US tariffs on India , already visible in slowing economic activity. Diverging Views: Economists Weigh In While SBI Research makes a strong case for easing, not all economists agree: Bank of Baroda (Madan Sabnavis) : Warns that GDP growth is still projec...

India has implemented its biggest Goods and Services Tax (GST) revamp since its launch in 2017, effective September 22, 2025 . The reform reduces four tax slabs to two — 5% and 18% , aiming to streamline the system, boost consumption, and provide significant relief to households and industries. Prime Minister Narendra Modi described the overhaul, along with earlier income tax cuts, as a “savings festival” (Bachat Utsav) , estimating that Indians would collectively save ₹2.5 lakh crore . GST Benefits for Households and the Middle Class The government has pitched the reforms as a dual benefit: Income tax cuts primarily helped the middle class. GST reductions extend to the poor and the neo-middle class. PM Modi noted, “With these reforms, people will be able to save more and spend on what they wish. From youth, farmers and women to shopkeepers, traders and entrepreneurs—everyone will gain from this Bachat Utsav.” Appliances and Electronics: Big Price Drops Air Conditi...