Will GST Cuts Really Spark A Consumption Boom In India | Govindraj Ethiraj | The Core Report

Описание: On Episode 677 of The Core Report, financial journalist Govindraj Ethiraj talks to Nikhil Varma, Technical Lead, India at Algorand.
____________________________________________
In Partnership With:
Markets move fast.
Stay ahead with InvestingPro — your all-access pass to 300,000+ instruments, pro tools & real-time alerts.
No noise. Just market intelligence.
InvestingPro — power your portfolio.
Download Now: https://www.investing-referral.com/af...
____________________________________________
SHOW NOTES
(00:00) The Take
(04:12) The tariff overhang continues but markets have forgotten them
(09:05) How real world enterprises are building on blockchain
(18:21) The rains are leaving early

The Take: What If the Consumption Boom Never Comes:

Tax cuts on essentials and big-ticket items like cars, ACs, and refrigerators take effect this week. Markets expect a major consumption boom. But what if it does not happen?

Lower prices help, but demand depends on incomes, EMIs, and consumer confidence. Former Finance Minister P. J. Dambaram asked—if 5% GST on basics like toothpaste, notebooks, and tractors is good today, why were Indians paying higher rates for eight years? The real issue is stagnant household income.

High-value items are bought with loans, not just price cuts. A 1.5 lakh rupee reduction on cars may not spark new purchases. People won’t buy more toothpaste or soap just because it’s cheaper. More likely, they’ll shift to premium brands.

Kantar data shows urban spends rose from 52,700 to 73,000 rupees in three years, rural from 36,000 to 46,000. Yet 38% of households say they are just managing and 45% admit they are struggling. Former Nestlé chief Suresh Narayanan says rising food, rent, and education costs squeeze discretionary spending. Knight Frank warns of a 10 million home deficit, with rents set to rise 5–8%.

So will tax cuts spark a boom? Probably not. Consumption may rise, but growth is capped by tight budgets. We must wait for post-festival sales to know the true impact.

Tariffs and Markets:

India faces a 50% tariff on US exports. The US is urging G7 and EU allies to add tariffs on China and India over Russian oil. Yet markets remain upbeat. Sensex closed at 81,904, Nifty at 25,114. IT stocks jumped 4.3% in their best week in four months. Infosys added momentum with a buyback.

Crisil says inflation edged up to 2.07% in August, driven by food and gold. It cut its full-year forecast to 3.2%. Heavy rains in Punjab, Rajasthan, and Telangana threaten crops and food prices.

Global investors eye the US Federal Reserve. A 25 basis point rate cut is expected this week, with more to follow. Wall Street hit record highs despite uncertainty.

Markets and IPOs:

India’s regulator eased IPO rules for giants like Reliance Jio. Firms worth over 5 trillion rupees can now list with just 2.5% stake dilution, boosting the IPO pipeline.

Building on Blockchain:

We speak with Dr. Nikhil Verma from Algorand Foundation on India’s new data protection rules, blockchain traceability, and enterprise adoption. Insights come as we count down to the Algorand India Summit 2025 in Bengaluru this December.

Weather Update:

The Indian Meteorological Department says monsoon withdrawal has begun from Rajasthan, three days early. Dry spells are forecast in the region, while Mumbai has resumed training.

Stay tuned to The Core Report with Govindraj Ethiraj for clear insights on US tariffs, global markets, sanctions, inflation, IPOs, and blockchain. The world is shifting fast, and understanding the impact on business, tech, and manufacturing has never been more important. Subscribe for more sharp analysis.

#GlobalMarkets #USTariffs #TheCoreReport #Investing #BusinessNews #TheCore

Join The Core Insider to get access to perks:
   / @thecore_in  

Listeners! We await your feedback: https://tinyurl.com/TCR-Listener-Survey

The Core & The Core Report is ad supported & FREE for all readers & listeners. Write in to [email protected] for sponsorships & brand studio requirements.

For more of our coverage check out thecore.in (https://www.thecore.in/)

Support the Core Report (https://tinyurl.com/Support-the-Core-...)

Join & Interact anonymously on our WhatsApp channel (https://tinyurl.com/The-Core-WhatsApp...)

Subscribe to our Newsletter (https://www.thecore.in/newsletters/th...)

Follow Us on Social Media for More Updates:
Twitter (  / the_core_in  )
Instagram (  / the.core.in  )
Facebook (  / thecore.biz  )
Linkedin (  / thecore-in  )
Youtube (   / @thecore_in  )