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GST cuts boost markets, add ₹6 lakh crore in value

Business

India's stock market just saw a ₹6 lakh crore boost, thanks to PM Modi's new GST cuts announced last month and kicking in from September 22.
Lower taxes on small cars and two-wheelers have made them more affordable, lighting up the auto and consumer durable sectors.

Small cars and 2-wheelers now face just 18% tax

GST on small cars dropped from up to 31% to 18%.
Two-wheelers under 350cc now also face just 18% tax, down from 28%.
Even big SUVs got a break. These changes mean lower prices and are expected to drive up demand for vehicles.

Auto stocks soar

Auto stocks soared—Nifty Auto jumped 11%, adding ₹5.13 lakh crore in value. Eicher Motors rose by 19%, Maruti Suzuki by 18%.
Consumer durables weren't left out: Bata India shot up 20%. GST on footwear priced below ₹2,500 will fall to 5%.

Analysts upbeat about long-term growth

Analysts say these tax cuts could unlock an extra ₹96,000 crore in spending power, acting like a mini economic boost.
Experts are upbeat about long-term growth but note that companies might face tighter profit margins due to more competition.
If you're eyeing the markets or planning a big purchase, this is one trend worth watching through 2026.