印度税改在即：下调消费税应对关税冲击，印股应声反弹

Core Viewpoint - India is preparing a significant tax reform to boost its economy in response to the threat of a 50% tariff on Indian goods by Trump, aiming to reduce the current four-tier Goods and Services Tax (GST) system to two tiers, benefiting consumers and small businesses [1][2]. Group 1: Tax Reform Details - The proposed tax reform will reduce the existing GST rates from four tiers (5%, 12%, 18%, and 28%) to two tiers, with most goods previously taxed at 12% and 28% now subject to lower rates of 5% and 18% [1][2]. - The reform proposal will be discussed by a group of state finance ministers and is expected to be submitted to the GST Council led by Finance Minister Nirmala Sitharaman in September or October [2]. Group 2: Economic Impact - Analysts estimate that the tax reform could potentially boost India's GDP growth by 0.6%, helping to mitigate the impact of the tariff threats on consumption and corporate spending, which together account for over 60% of GDP [3]. - The reduction in consumption tax is projected to lower inflation by 0.6-0.8 percentage points within 12 months, although government revenue may decline by about 0.4% of GDP [3]. Group 3: Market Reaction - Following the announcement of the tax reform, the Indian stock market reacted positively, with the NSE Nifty 50 index rising by 1.6% to 25022 points, marking the largest intraday gain in over three months [4]. - Automotive and consumer-related stocks saw significant gains, with companies like Bajaj Auto Ltd. and Hero MotoCorp Ltd. experiencing substantial increases, and Maruti Suzuki rising over 8% [7].