Modi's tax cuts will give India a festive spending boost

Prime Minister Narendra Modi's tax cuts in India aim to boost festive spending by making essential items tax-free and lowering consumption taxes on goods like small cars, air conditioners, and personal care products. These changes coincide with the beginning of the festive season, encouraging consumer spending and benefiting companies like automakers and consumer goods manufacturers. Lower taxes are expected to offset the impact of US tariffs, stimulate demand, and revitalize India's domestic economy, especially benefiting first-time buyers and consumers during the festive period. However, small shopkeepers may face challenges updating prices and adapting to tax changes, impacting various sectors like bridal wear and retail.