Why Modi Is Hoping Tax Cuts Will Offset US Tariffs: QuickTake

India’s Prime Minister Narendra Modi is seeking to overhaulthe country’s complex goods and services tax, in an attempt to boost domestic spending and cushion the economic blow of US tariffs.

The economy already isn’t expanding fast enough to meet Modi’s goal for India to become a developed nation by 2047, and growth could slow as the higher tariffs imposed by India’s largest trading partner threaten a slump in exports.

Faced with that picture, Modi is looking to lift consumption, which accounts for 60% of India’s gross domestic product. His government is aiming for the proposed tax cuts to come ...