Here are the top stories from businessline, September 23, 2025
GST rate cuts, income tax relief to have multiplier effect on GDP numbers: CEA Nageswaran
Chief Economic Advisor V. Anantha Nageswaran says the recent GST rate cuts and Income Tax relief will significantly boost GDP through a multiplier effect, with a total impact estimated at over ₹2.5 lakh crore. He called GST 2.0 a landmark reform that will drive domestic demand.
Despite concerns abou...
Here are the top stories from businessline, September 23, 2025
GST rate cuts, income tax relief to have multiplier effect on GDP numbers: CEA Nageswaran
Chief Economic Advisor V. Anantha Nageswaran says the recent GST rate cuts and Income Tax relief will significantly boost GDP through a multiplier effect, with a total impact estimated at over ₹2.5 lakh crore. He called GST 2.0 a landmark reform that will drive domestic demand.
Despite concerns about a ₹48,000 crore fiscal hit from GST cuts and slower direct tax collections, he’s confident of meeting the 4.4% fiscal deficit target, citing strong non-tax revenues and festive season demand.
On Trump-era tariffs, he expects a short-term drag on growth but says GST reforms could offset the impact. Long-term, he believes India’s FDI appeal remains strong. For Q2, GDP is likely to stay close to the 7% mark, based on current indicators.
Student visa arrivals to US hit four-year low as Trump policies bite
student arrivals to the US fell 19% in August year-on-year, hitting just over 313,000 — the lowest August number since 2021.
It marks the fifth straight month of decline, with overall student entries down nearly 12% for the year so far.
The drop is most severe among Asian students, especially from India, where arrivals plunged 46%.
Tighter immigration rules, paused visa interviews, and increased vetting — including social media checks — have created major hurdles for applicants.
Universities now face a projected $7 billion revenue loss this fall.
With international students contributing nearly $44 billion to the US economy annually, experts warn that continued declines could erode America’s leadership in science, technology, and innovation.
Mid-size IT firms say “no significant impact” of new H-1B visa fee
Mid-size Indian IT firms expect minimal impact from the new $100,000 H-1B visa fee, having already reduced their reliance on these visas.
Companies like Mphasis and Hexaware report low H-1B use, limiting near-term effects, while larger firms like LTIMindtree may face bigger losses.
The sector’s shift to offshore work, which is more profitable, could offset revenue drops from fewer on-site projects. Analysts estimate a modest margin hit of 10-100 basis points by FY27, mainly affecting critical roles with no local alternatives.
