00:00India has announced tax cuts on hundreds of consumer items from soaps to small cars in an attempt to spur domestic demand.
00:09The measures come as 50% U.S. tariffs took effect, raising concerns about a potential economic slowdown.
00:17Finance Minister Nirmala Sitaraman said the reform simplifies GST into two rates, 5% and 18%, while removing tax on life and health insurance policies.
00:28The cut is set to take effect on September 22, with taxes on everyday items such as toothpaste and shampoo falling from 18% to 5%, and rates on small cars, air conditioners and televisions from 28% to 18%.
00:44The move will cost India's federal and state governments an estimated $5.5 billion, but economists say it may offset the impact of U.S. tariffs.
00:54This change is expected to benefit FMCG giants like Hindustan Unilever, Godrej and electronics makers including Samsung, LG and Sony, and automakers like Maruti and Toyota.
01:07The rush to cut the tax was triggered by Prime Minister Narendra Modi's call for greater self-reliance in India, vowing last month to lower the GST by October to counter punishing U.S. tariffs.
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