MUMBAI: Indian benchmark shares jumped about 1% on Monday as the government’s plans for sweeping changes to the goods and services tax (GST) regime is expected to boost consumption in an economy where growth is threatened by steep US tariffs. New Delhi will propose a two-rate structure of 5% and 18%, doing away with the 12% and 28% tax that was imposed on some items, a government official said on Friday, after Prime Minister Narendra Modi announced the reforms.
The Nifty 50 rose 1% - the biggest single-day percentage gain since June 26, 2025 - to 24,876.95 points and the BSE Sensex gained 0.84% to 81,273.75.
However, Indian indexes have underperformed global markets this year, with the Nifty up 5.2%, compared with gains of 17.4% in Asia and 18.3% in emerging markets . India, world’s fifth largest economy is expected to grow at 6.5% in 2025, according to central bank estimates, but economists have pointed to sluggish urban consumption as wage growth remains modest.
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