10th September 2025 Daily Current Affairs

Economics & Markets

• GST Cuts Offset U.S. Tariff Impact
  India’s Chief Economic Adviser, V. Anantha Nageswaran, stated that the government’s GST reductions will help mitigate the negative impact of U.S. tariffs—especially the 25% penalty duty—on GDP. The net effect is expected to trim projected growth by around 0.2–0.3%, with anticipated full-year growth of 6.3–6.8%

• Fitch Upgrades India’s Growth Forecast
  Fitch Ratings raised India’s GDP forecast for FY 2025–26 to 6.9% (from 6.5%), citing robust Q2 performance, driven by services and domestic demand. The agency projects growth to moderate to around 6.2–6.3% in the following two years and anticipates a 25 basis-point RBI rate cut later this year.

• Markets Rally Amid Trade and Rate Optimism
  Indian stock indices opened higher: the Nifty 50 gained ~0.49% to hit 24,991, and the Sensex rose ~0.5% to 81,504, driven by hopes of U.S.–India trade progress and expectations of a Fed rate cut

Currency & Investor Sentiment

• Rupee Faces Mixed Signals
  The Indian rupee held steady in early trading at approximately ₹88.08–88.12/USD, balancing between optimism about trade talks and pressure from ongoing U.S. tariff uncertainties

• Equity Inflows Slow as Gold Gains
  Mutual fund inflows into equities in August dipped ~22% month-on-month to ₹334.3 billion amid tariff-driven caution. In contrast, gold ETFs hit a 7-month high with ₹21.9 billion inflows, reflecting investors’ flight to safety.

Fiscal Changes & Consumer Impact

• GST 2.0 Reshapes Consumer Behavior
  GST overhaul ahead of the festive and wedding season is already influencing spending. Budget apparel (under ₹2,500) now taxed at 5%, while luxury items are at 18%, and luxury cars and tobacco at 40%. Auto makers and brands like Raymond are passing savings to consumers.

Trade & Diplomacy

• U.S.–India Trade Talks Rekindle Hope
  President Trump signaled renewed U.S.–India trade dialogue, expressing optimism after weeks of friction. PM Modi echoed this openness, spurring investor sentiment and stoking hopes for a deal

Industry Developments

• Volkswagen India Slashes Car Prices
  In response to the GST revision, Volkswagen India announced price cuts of up to ₹3.27 lakh across its models to deliver tax benefits directly to buyers

Other Notable Developments

• Nepal Unrest Disrupts Flights
  Political turmoil in Nepal led Indian airlines to suspend flights to Kathmandu. Affected travelers are advised to stay updated via airlines.

Daily Summary Table