GST reform in two steps: Short-term demand boost, long-term rate reset

Apart from policy initiatives targeting the export sector, it is also possible to conceive of more broad-based measures to stimulate domestic demand as an alternative to export demand

The economic environment facing Indian business has received a new shock. The punitive tariffs announced by the United States government came into effect on August 27, levying a 50 per cent import duty on a range of Indian exports. The impact of these tariffs is expected to be felt across sectors, including garments, footwear, gems and jewellery and shrimp exports. Significant second-round effects are also anticipated, such as a reduction in imports related to exports of goods. Gems and Jewellery is one such sector, where exports are closely linked to the import of raw diamonds.