India, Sept. 5 -- When the United States raised tariffs on Indian exports this year, many feared a slowdown for Asia's third-largest economy. Instead of retreating, India responded with a sweeping tax reform on September 3, 2025-simplifying GST, slashing rates on hundreds of consumer goods, and sending a clear message: if one door shuts abroad, another will open at home.

This is not just a tinkering of slabs. It is the most decisive overhaul since GST was rolled out in 2017. Two simplified rates-5% and 18%-now cover most goods and services, while essentials like health and life insurance enjoy exemptions.

Sin and ultra-luxury items remain heavily taxed, ensuring revenue protection.

Timing the rollout just ahead of the festive season is...