GST cuts drop prices, but US exports dive 12

India’s economy appears poised to maintain robust expansion despite global headwinds, according to an analysis released on Tuesday by HSBC Global Investment Research. The firm projects growth will reach between 7.2 and 7.4 percent during the third quarter of calendar year 2025, driven by improvements across agriculture, manufacturing and construction sectors.

Reductions in the goods and services tax have prompted retailers to lower prices and sparked greater consumer spending, helping to counterbalance weaker demand from American buyers concerned about potential tariffs. While shipments to the United States fell 12 percent from a year earlier during September, total export volumes held steady as companies found new customers in other markets and maintained strong sales of electronics, petroleum products and high-technology services that remain exempt from trade restrictions.

Domestic demand has shown particular strength, with companies reporting increased orders for durable goods and vehicles alongside a surge in online shopping activity. Manufacturing firms ramped up their purchases of raw materials and components, signaling confidence that production will remain solid through November. However, HSBC cautioned that economic momentum could slow somewhat during the latter half of the fiscal year as the government works to reduce budget deficits.