India

The Indian government has slashed the Goods and Services Tax (GST) on motorcycles and scooters with engine capacities up to 350cc from 28% to 18%, effective September 22, 2025. This move is expected to lower vehicle prices significantly, making two-wheelers more affordable for middle-class consumers and stimulating demand in the automotive sector. Leading manufacturers such as Honda, Hero MotoCorp, and Yamaha have announced price reductions of up to ₹18,887 on select models. The measure also aims to boost sales ahead of the festive season while supporting broader economic growth.

Indian equity benchmarks posted modest gains on Thursday, extending their winning streak for a fourth straight session, buoyed by optimism surrounding India-U.S. trade talks, expectations of GST relief measures, and global cues hinting at potential rate cuts by the U.S. Federal Reserve. The Sensex closed above Rs. 81,500, while the Nifty 50 reclaimed the psychologically important Rs. 25,000 mark. Gains were led by banking, energy, and PSU stocks, although profit-booking weighed on IT and auto counters.

India’s automobile retail sector reported steady growth in August, supported by early festive season purchases, improving rural demand, and sustained momentum in passenger vehicle sales. Two-wheelers, which had been under pressure for several quarters, showed signs of revival, while commercial vehicles maintained stable performance. The Federation of Automobile Dealers Associations (FADA) noted that positive monsoon progress, easing inflation, and renewed consumer sentiment contributed to the uptick. However, supply chain pressures and cautious financing trends remain areas of concern.

The imposition of Goods and Services Tax (GST) on health insurance premiums has emerged as a pressing concern for both policyholders and industry stakeholders. With premiums already rising due to medical inflation and higher claim ratios, the additional 18% GST has further strained affordability for individuals and families. While the government views GST collections as a critical revenue stream, critics argue that taxing health protection discourages insurance penetration in a country where coverage remains relatively low.

Indian equities witnessed another day of buoyant trade, with the benchmark Sensex and Nifty scaling fresh record highs amid robust global cues and renewed investor optimism. Gains in banking, technology, and energy counters drove the momentum, while foreign institutional inflows further supported market sentiment. Analysts noted that resilience in corporate earnings and stable macroeconomic indicators have bolstered confidence, though caution persists around global oil prices and currency movements.

Food delivery in India is poised for a notable price increase as rising operational expenses, inflationary pressures, and growing labor and fuel costs weigh on delivery platforms. Companies such as Swiggy, Zomato, and other aggregators are expected to pass a portion of these expenses onto consumers, affecting order pricing and delivery charges. Analysts note that while demand for online food delivery remains robust, prolonged cost pressures could influence customer behavior, spurring shifts toward value-conscious ordering and alternative dining options.

Skoda India is offering significant price reductions on its key models following the recent Goods and Services Tax (GST) cut, providing customers with savings of up to Rs. 5.8 lakh. The benefits apply across popular models including the Kushaq, Slavia, and Kodiaq, enhancing affordability and potentially boosting demand in both compact and premium segments. Coupled with additional manufacturer incentives and financing schemes, these reductions make Skoda’s offerings more competitive against rivals.

Gold prices in India surged to unprecedented levels as October futures on the Multi Commodity Exchange (MCX) touched Rs. 1.07 lakh per 10 grams, reflecting strong investor demand amid global economic uncertainty and domestic inflationary pressures. Analysts cite a combination of weakening rupee, sustained geopolitical tensions, and cautious monetary policy as primary drivers of the rally. The historic spike has reignited debate over whether gold remains a safe-haven investment or if valuations have become stretched.

The government’s decision to reduce the Goods and Services Tax (GST) on cement is poised to bring substantial relief to India’s infrastructure and real estate sectors. As cement is one of the most heavily taxed construction inputs, the rate cut is expected to significantly lower project costs, improve cash flows for developers, and accelerate stalled construction activity.

Renault India has announced significant price reductions across its product lineup following the implementation of GST 2.0, with discounts reaching up to Rs. 96,395 depending on the model. The move comes in response to revised tax rates aimed at revitalizing the auto industry and enhancing consumer affordability. By swiftly aligning its pricing strategy with the new structure, Renault seeks to stimulate demand in a market that has experienced sluggish growth in recent quarters.