GST 2.0: Taking a big step towards speeding up the country’s economy, the central government has made a big change in GST. Earlier, four slabs were kept in GST 1.0, but now it has been reduced to only two slabs. This new structure will be applicable from 22 September 2025. However, the state governments have expressed concern about their revenue loss about this change.

According to the government estimate, there may be a loss of about Rs 48,000 crore annually based on the consumption pattern of 2023-24. Revenue Secretary Arvind Srivastava said in a statement to news agency IANS that the central government may have to bear such a burden.

What do brokerage firms say on loss?

Brokerage firms believe that the actual loss will not be so large, as GST improvement can increase demand. According to Jafaries estimates, in FY 2026, this deficit can be reduced between 22,000 and 24,000 crore rupees. The firm argues that tax cuts may reduce inflation and in such a situation, the Reserve Bank can cut interest rates from 25 to 50 basis points.

Experts of Bransstein say that if the government does not cut capital expenditure, then this deficit can increase to about 20 basis points of the Union Budget. But if capital expenses are cut by 5 percent, then this effect will be reduced to only 5 basis points.

Impact on market

According to UTI AMC, the impact of this change on the bond market and stock market will be limited. At the same time, the ICRA welcomed the government’s move and said that this improvement will prove to be positive for industries struggling with the pressure of American high tariffs and will strengthen the market notion.

Also read: What do the big business personalities of the country think on GST 2.0? Opinion from Anand Mahindra to Harsh Goenka

Rbi to cut repo rate again: Whether a car or home loan… all of them are going to reduce your EMI. It is believed that the RBI can once again cut 0.25 percent on Friday due to the target of 4 percent of the target of 4 percent. In the last six months, it has been brought to 6 percent by cutting the repato rate twice by RBI. In such a situation, another major decision is expected in the meeting to be held on 6 June.

Repo rate is expected to cut

In fact, between June 4 to 6, a meeting of RBI’s Monetry Policy Committee i.e. MPC is going to be held. The RBI had earlier cut the repo rate by 0.25 percent in February and then in April this year. After another cut, it is believed that this will promote Indian GDP despite the global uncertainty created by the increase in US import duty. It is worth noting that the committee MPC of the six -member monetary case under the chairmanship of RBI Governor Sanjay Malhotra makes this decision.

What do experts say?

The market experts are looking at the market experts with great hope for the RBI meeting. Madan Sabnavis, Chief Economist of Bank of Barodi, says that the MPC will cut the repo rate by 0.25 percent on June 6 due to the control of inflation and making the liquidity situation very comfortable through various measures of RBI.

While this rating agency Ecra’s Chief Economist Aditi Nair says that the CPI (Consumer Price Index) for a large part of the current financial year is expected to continue monetary relaxation by MPC, with an estimate of up to 4 percent of the CPI (Consumer Price Index) inflation. He believes that next week, the repo rate is expected to reduce a 0.25 percent reduction, after which two policy reviews will be cut. This will increase the repo rate to 5.25 percent by the end of the cycle.

Also read: Manufacturing PMI came down to the lowest level of three months in May, but hope of GDP growth continues

With the speed with which the Indian economy is moving forward, it will leave Japan and then Germany behind in the coming days. This is to say of the International Monetary Fund (IMF). According to the latest data released by the IMF, India’s GDP (GDP) doubled during the last ten years i.e. in 2015, it increased to $ 4.3 trillion in 2025 against $ 2.1 trillion in 2015. Which shows growth of about 105%.

According to IMF data, India is moving fast on the path of development and will overtake Japan in the third quarter of the financial year 2025. And leaving Japan behind in 2027, it will be left behind only America and China in terms of global economy.

Japan currently has GDP $ 4.4 trillion dollars. If the pace of India’s development is maintained in this way, then in the second quarter of 2025, the third economy of the world will leave Germany behind. Germany is currently the GDP of 4.9 trillion dollars.

Earlier, Commerce and Industry Minister Piyush Goyal described India’s 10 -year -old economy as excellent and appreciated the doubling of the country’s GDP in a decade. He said that India went ahead of all countries in shaping its economy from G7, G20 to BRICS.

He said- Global shift is reality. In the last decade, the Indian economy led by PM Modi has doubled and is soon ready to become the third economy in the world.

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