India’s economy is witnessing powerful momentum, driven by record service sector growth, a landmark tax reform push, and bold expansion plans from Reliance Industries.
The services sector soared to a 15-year high in August, with the Purchasing Managers’ Index (PMI) climbing to 62.9, up from 60.5 in July. Strong demand, new orders, and rising exports fueled the boom, but inflationary pressures also picked up—input costs and output prices hit their highest levels in nearly a decade. Despite this, business confidence remains robust, signaling resilience in India’s growth story.
On the policy front, the government is preparing a major overhaul of the Goods and Services Tax (GST). The proposal aims to simplify the tax structure by cutting tiers from four to two—5% and 18%—while raising duties on luxury goods up to 40%. Over 400 items, including essential household products and small cars, could become cheaper, potentially boosting consumption. However, the move may lead to $21 billion in revenue losses, sparking concerns for state governments, who will demand compensatory mechanisms.
Meanwhile, Reliance Industries, led by Mukesh Ambani, announced aggressive expansion strategies. Key highlights include the launch of a Jio IPO by mid-2026, the creation of Reliance Intelligence, an AI-focused subsidiary, and significant investments in green hydrogen, solar energy, and retail. Strategic tie-ups with Google and Meta further underline Reliance’s ambitions in AI and cloud.
Together, these developments underline India’s push for growth, reform, and innovation—even as global markets face turbulence.