Economy

Maharashtra has solidified its position as India's wealth powerhouse in 2025, with Mumbai leading as the nation's "Millionaire Capital." According to the Mercedes-Benz Hurun India Wealth Report 2025, the state boasts 1,78,600 millionaire households, marking a 194% increase since 2021. This surge reflects robust economic growth, strategic investments, and the state's pivotal role in India's financial ecosystem.

India is on the cusp of a historic transformation in its indirect tax regime as the Goods and Services Tax Council prepares to implement the most extensive set of reforms since GST’s launch in 2017. Effective September 22, 2025, the revised framework—dubbed GST 2.0—will rationalize tax slabs, eliminate the long-standing compensation cess, and restructure compliance mechanisms. These changes are expected to reduce prices of essential goods, benefit consumers and farmers, and simplify processes for businesses.

India’s Goods and Services Tax (GST) reforms have delivered a substantial economic stimulus, generating an estimated Rs 2 lakh crore boost and invigorating consumer demand across sectors. Analysts highlight that streamlined tax structures, lower compliance costs, and rate reductions have enhanced liquidity for businesses, enabling investment, price competitiveness, and market expansion. The reforms are particularly impactful in the FMCG, automotive, and manufacturing sectors, driving higher consumption and supply chain efficiencies.

Gold prices staged a recovery after recent declines, buoyed by value buying from investors and favorable global cues. The precious metal, which had faced pressure from a stronger dollar and shifting interest rate expectations, regained ground as traders sought safety amid market volatility. The rebound underscores gold’s enduring appeal as a hedge against economic uncertainty and currency fluctuations.

KABIL (Khanij Bidesh India Limited) is exploring investment opportunities in Zambia and Chile to secure critical mineral resources essential for India’s strategic industries, including electric vehicles, renewable energy, and electronics. This move aligns with the company’s mandate to strengthen domestic access to lithium, cobalt, and copper, reducing dependence on imports and enhancing supply chain resilience. Analysts view KABIL’s international focus as a calculated step to support India’s industrial ambitions and energy transition goals.

India’s passenger vehicle market experienced a 9% year-on-year decline in August, according to the Society of Indian Automobile Manufacturers (SIAM). The contraction reflects ongoing challenges in the sector, including rising interest rates, higher fuel costs, and cautious consumer sentiment. Both domestic and export sales were impacted, with compact cars and SUVs facing the steepest drops. Analysts highlight that while demand remains resilient in select segments, macroeconomic pressures and tightening credit conditions are tempering growth.

India’s Wholesale Price Index (WPI) inflation moved into positive territory in August, registering 0.52% after several months of deflationary trends. The reversal reflects rising costs of food, fuel, and manufactured products, suggesting that wholesale prices are gaining momentum amid persistent global and domestic challenges. While retail inflation remains elevated, the uptick in WPI signals potential downstream effects on consumer prices in the coming months.

Retail inflation in India recorded a moderate rise to 2.07% in August, reflecting a gradual uptick in consumer prices across food and non-food segments. While inflation remains well below the Reserve Bank of India’s upper tolerance limit, analysts note emerging price pressures in key categories such as vegetables, pulses, and fuel. Core inflation, which excludes volatile items like food and fuel, remained relatively stable, indicating underlying price dynamics are contained.

India’s foreign exchange reserves have surged to a historic high of USD 698.27 billion, reflecting the country’s robust external position and strong investor confidence. The steady rise highlights resilient capital inflows, effective monetary management, and a favorable global trade balance. With the Reserve Bank of India (RBI) maintaining a cautious but strategic approach, the record reserves provide a crucial buffer against currency volatility, external debt obligations, and global financial uncertainty.

Senior parliamentarian Shashi Tharoor has emphasized the potential of Goods and Services Tax (GST) rate reductions to stimulate India’s economy. By advocating for calibrated cuts, he underscored the importance of easing the burden on businesses and consumers while broadening the tax base. Tharoor argued that lower rates could invigorate demand, support small enterprises, and make compliance more attractive, ultimately strengthening revenue collection.