As August approaches, India’s economy is at an important point with big decisions coming up. The Reserve Bank of India (RBI) will meet from August 4 to 6 to decide on interest rates. Many expect RBI to keep the rate steady at 5.50 percent, but there could be a rate cut later this year because inflation is low and the economy is growing well.
The 56th GST Council meeting will happen in August, with talks about changing GST rates and what will happen to the GST compensation cess, which ends March 31, 2026. They might remove the 12 percent tax slab and move some items to 5 percent or 18 percent.
Trade talks between India and the US have stalled. If no deal is reached by August 1, India may face a 26 percent tariff on some goods, up from the current 10 percent. The US temporarily paused these tariffs to encourage talks, but the deadline is near, and both sides are still negotiating.
India’s exports fell in June because of tariff pressures and less demand abroad.
On a positive note, inflation is at a six-year low of about 2.1 percent, helped by low food prices. India’s economy is expected to grow strongly in 2025–26 with GDP growth between 6.7 percent and 7.3 percent, according to forecasts.
