GST's Festive Impact
Changes in Goods and Services Tax (GST) are stirring the e-commerce and hospitality sectors. With the festive season around the corner, e-commerce sellers
are bracing for potential billing challenges. Hotel rooms, casinos, and related services are under the spotlight, with rates ranging from 12% to 28% GST, which could impact consumer spending during this period.
Export Challenges Mount
Indian exporters are facing headwinds. US tariffs are impacting gems and jewellery businesses, putting jobs in Surat at risk. Simultaneously, the India-UK Free Trade Agreement (FTA) is viewed as a potential offset to US losses. The textile industry is also keeping a close eye on this development, with CareEdge Ratings suggesting a realignment in exports might happen.
Investment and Outlook
The Reserve Bank of India (RBI) anticipates a 21.5% jump in private capital expenditure (capex) to reach Rs 2.67 lakh crore in Fiscal Year 2026. Infrastructure and power sectors are expected to lead this growth. However, Foreign Portfolio Investors (FPIs) offloaded Rs 34.99 crore in August, reaching a six-month high, influenced by US tariffs and high valuations.
Digital and Gold Markets
Digital payment safety remains a key focus, with the RBI Deputy Governor flagging off a walkathon in Chandigarh to promote responsible digital use. In the gold market, rising volatility is anticipated. This is linked to the influence of US data, the Federal Reserve's signals, and the depreciating rupee, which could impact the metal's performance.
GST and Relief
Delhi's CM, Rekha Gupta, has announced that approximately Rs 1,600 crore in GST refunds will be cleared before Diwali. This move aims to provide a much-needed liquidity boost to traders, which is seen as timely financial support, especially during the ongoing festive season.
