{"id":8579,"date":"2025-08-28T10:16:35","date_gmt":"2025-08-28T10:16:35","guid":{"rendered":"http:\/\/tezgyan.com\/index.php\/2025\/08\/28\/gst-reforms-likely-to-offset-tariff-impact-india-to-remain-among-fastest-growing-ems-report-economy-news\/"},"modified":"2025-08-28T10:16:35","modified_gmt":"2025-08-28T10:16:35","slug":"gst-reforms-likely-to-offset-tariff-impact-india-to-remain-among-fastest-growing-ems-report-economy-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/08\/28\/gst-reforms-likely-to-offset-tariff-impact-india-to-remain-among-fastest-growing-ems-report-economy-news\/","title":{"rendered":"GST Reforms Likely To Offset Tariff Impact, India To Remain Among Fastest-Growing EMs: Report | Economy News"},"content":{"rendered":"


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India likely to remain one of Asia’s fastest-growing emerging market economies this decade, even as fresh US tariffs weigh on some industries, as per BMI, a Fitch Solutions firm.<\/h2>\n
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Despite the expected moderation, India’s GDP growth is projected to stay above 6 per cent in the coming years.<\/p>\n<\/figure>\n

India is likely to remain one of Asia\u2019s fastest-growing emerging market economies this decade, even as fresh US tariffs weigh on some industries, according to BMI, a Fitch Solutions company. The research firm said upcoming goods and services tax (GST) reforms, aimed at cutting rates and boosting private consumption, could help offset the tariff impact.<\/p>\n

\u201cWe forecast India\u2019s economic growth to steadily slow to just above 6.0 per cent by the decade\u2019s end, slightly below the 2010-2019 pre-pandemic average of 6.5 per cent, yet still positioning India among Asia\u2019s fastest-growing economies,” BMI noted.<\/p>\n

Despite the expected moderation, GDP growth is projected to stay above 6 per cent in the coming years. Productivity is also estimated to rise around 5 per cent through the decade, providing strong momentum.<\/p>\n

BMI said earlier that a \u201c25-percentage point increase in the \u2018reciprocal\u2019 tariff would slow real GDP growth in FY2025\/26 (April-March) and FY2026\/27 by a further 0.2 per cent”. It has now trimmed its projections, expecting the economy to expand 5.8 per cent in FY2025\/26 and 5.4 per cent in FY2026\/27.<\/p>\n

On the GST reforms, the firm added that \u201cdepending on the specifics, the GST reform could cancel out the drag on growth from the tariffs. Given that the details have yet to be confirmed, we highlight the GST reform as a slight upside risk to our growth forecast for now”.<\/p>\n

The planned GST slab rationalisation into a simpler two-slab structure is expected to spur consumption and improve margins across sectors including automobiles, cement, consumer staples and financial services.<\/p>\n

Backing the outlook, SBI Research recently said GST reforms, along with recent income tax cuts, could add Rs 5.31 lakh crore to consumption, equivalent to 1.6 per cent of GDP. Meanwhile, Fitch Ratings affirmed India\u2019s sovereign rating at \u2018BBB\u2019 with a stable outlook, saying US tariffs are likely to have only a limited impact on growth.<\/p>\n

Meanwhile, according to the August edition of EY\u2019s Economy Watch Report, India could emerge as the world\u2019s second-largest economy by 2038 with a gross domestic product (GDP) of $34.2 trillion in purchasing power parity (PPP) terms. The consultancy highlighted that India\u2019s growth story is supported not just by favourable demographics but also by structural reforms and resilient economic fundamentals.<\/p>\n

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Mohammad Haris<\/a><\/p>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More<\/span><\/p>\n<\/div>\n<\/div>\n

Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More<\/span><\/p>\n<\/div>\n<\/div>\n

News<\/a> business<\/a> \u00bb economy<\/a> GST Reforms Likely To Offset Tariff Impact, India To Remain Among Fastest-Growing EMs: Report<\/span><\/div>\n
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Last Updated:August 28, 2025, 14:20 IST India likely to remain one of Asia’s fastest-growing emerging market economies this decade, even as fresh US tariffs weigh on some industries, as per BMI, a Fitch Solutions firm. Despite the expected moderation, India’s GDP growth is projected to stay above 6 per cent in the coming years. India…<\/p>\n","protected":false},"author":1,"featured_media":8580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-8579","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/8579","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=8579"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/8579\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/8580"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=8579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=8579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=8579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}