On August 15, Prime Minister Narendra Modi announced significant Goods and Services Tax (GST) reforms to be implemented by Diwali 2025, aimed at reducing tax rates and simplifying the GST structure. The reforms propose rationalizing the current four tax slabs into two main brackets, 5% and 18%, which is expected to lower taxes on many essential goods and benefit both consumers and businesses. Following the announcement, the Indian stock market responded positively, with the BSE Sensex rising over 1,150 points shortly after opening, and market capitalization increasing by more than ₹6 lakh crore within 30 minutes. The market rally was also supported by India's credit rating upgrade by S&P Global after 18 years. Stocks in the automobile and banking sectors saw notable gains. The government has circulated the draft GST reform proposal among states and is seeking their cooperation for timely implementation. These reforms are part of a broader government initiative to enhance economic growth, reduce compliance costs for businesses, and provide relief to the common man through lower indirect taxes. (Updated 18 Aug 2025, 15:40 IST; source: link)