Strong GST Collections Signal Economic Momentum
India's Goods and Services Tax (GST) collections demonstrated impressive growth in October, driven by robust festive season spending and improved tax compliance. Gross GST revenues reached 1.96 trillion rupees ($22.3 billion), marking a substantial 5% increase over the same month last year. Even after accounting for recent tax cuts on various goods, net collections stood strong at 1.69 trillion rupees, a marginal increase of 0.6% compared to October 2024. This performance indicates growing consumer confidence and the effectiveness of compliance reforms, creating a virtuous cycle supporting revenue growth.
India Aims for $30 Trillion Economy by 2048
Commerce and Industry Minister Piyush Goyal asserted that India is poised to become a $30 trillion economy within the next 20-25 years. This ambitious projection is underpinned by India's strong economic performance, with its GDP growing 7.8% year-over-year in the April to June quarter of fiscal 2026 (Q1 FY26), a significant improvement over the previous year and exceeding market expectations. The International Monetary Fund (IMF) projects India's economic growth to be the fastest globally at 6.6% in 2025-26. To realize this vision, sustained higher growth rates and increased investment, particularly from the private sector, will be crucial.
Key Financial Regulations Effective November 1, 2025
Several new financial rules came into effect on November 1, 2025, impacting various aspects of personal finance and business:
- Banking Laws Amendment: New regulations allow bank account holders to nominate up to four individuals for bank accounts and lockers. Account holders can specify shares for each nominee and even set successive nominees to streamline the inheritance process.
- GST Slabs Changes: The Goods and Services Tax structure has been simplified, moving from four slabs to two main slabs plus a special rate. The 12% and 28% slabs have been removed, and a new 40% GST has been introduced for luxury and 'sin goods'.
- Aadhaar Updates: The Unique Identification Authority of India (UIDAI) has revised the fee structure and simplified the online update process for Aadhaar.
- SBI Card Fee Structure: SBI Card has updated its fee structure, introducing a 1% fee on education payments made via third-party platforms and on wallet reloads above Rs 1,000 under certain merchant codes.
- PNB Locker Rent Reduction: Punjab National Bank (PNB) announced a reduction in locker rent charges across multiple categories to offer greater convenience to customers.
Trade Policy Updates and Global Shifts
India imposed a 30% import duty on yellow peas, effective November 1, reversing its earlier duty-free policy. This move aims to support domestic farmers and address the pressure on local prices caused by cheap imports. On the energy front, Indian refiners are beginning to pivot away from Russian oil in response to evolving sanctions frameworks and geopolitical pressures. This shift is expected to increase India's energy import bill as refiners move towards more expensive crude sources.
Stock Market and Corporate News
The Indian stock market experienced increased volatility recently due to geopolitical tensions and profit-taking. The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will observe a trading holiday on November 5, 2025, for Guru Nanak Jayanti. In corporate news, several companies, including Hindustan Unilever Ltd (HUL) and Coal India, have set record dates for interim dividends and stock splits in the first week of November. Real estate firm ASBL was recognized as the "Fastest Growing Real Estate Company in India," with the real estate sector projected to become a $1 trillion industry by 2030.