Policy & Ethicsgst reformr and dexportsfintech
India Drives Growth With GST 2.0 Reforms
7.2
India's economy is gaining momentum ahead of Union Budget 2026, with Q1 FY2025–26 GDP expanding at the fastest pace in nearly two years driven by household consumption, a favourable monsoon, and robust government spending. The Reserve Bank raised its full-year growth forecast to 6.8% and cut the repo rate, while GST 2.0 (introduced September 2025) and expected budget measures aim to ease cash flow, boost exports, and increase R&D incentives.
Key Points
- 1GDP growth accelerates to the fastest pace in nearly two years; RBI raises forecast to 6.8%.
- 2GST 2.0 simplifies slab structure and trims rates, reducing compliance complexity and stimulating demand.
- 3Expect Budget 2026 liquidity measures and R&D incentives to ease working capital and spur innovation.
Scoring Rationale
Strong national economic relevance and clear actionable tax proposals, limited by opinion-based analysis from a single source.
Sources
Public references used for this report.
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