Business
GST 2.0: Axis report predicts shift from capex to consumption-led growth; MSMEs, consumer sectors seen as key beneficiaries – The Times of India
The government’s announcement of Goods and Services Tax (GST) rationalisation under GST 2.0 signals a major change in India’s economic approach, moving from capex-led spending to a consumption-driven model, according to a report by Axis Securities.“The government has now shifted gears from capex-oriented spending to consumption-led spending,” the brokerage said, adding that the February 2025 Budget had already started this transition by introducing tax reliefs for rural households and the middle class.
As per news agency ANI, the report noted that over the last decade, infrastructure projects like roads, bridges and metro networks defined government policy. However, GST 2.0, approved in the 56th GST Council meeting on September 3, marks a new phase aimed at boosting demand. The reforms rationalise the structure by reducing slabs from four to three, scrapping the 12% and 28% categories. Most items now fall under 5% and 18%, while a 40% slab is reserved for sin goods. Certain essentials have been placed under a Nil GST rate to directly spur consumption. These changes will take effect from September 22, coinciding with Navratri’s first day.
As per ANI, Axis Securities said the move is expected to benefit MSMEs and SMEs and revive credit growth, while boosting consumer demand in sectors such as durables, retail, FMCG, automobiles, cement, real estate, and building materials. The report added that higher discretionary income will strengthen the consumer discretionary segment, eventually reviving private capex, which has remained weak.Union commerce and industry minister Piyush Goyal also described the GST reforms as “game-changing” and the “biggest reform since independence,” reported news agency PTI. He said the move would support demand across sectors, benefit every consumer, and play an important role in India’s growth journey towards becoming a developed country by 2047.
“Every stakeholder in the country, every consumer, stands to benefit,” Goyal said, urging industry to pass on the benefits. He credited Prime Minister Narendra Modi for leading what he called the “biggest ever reform that India has seen since independence.”The minister added that the reforms, coming ahead of the festive season, are like a “Diwali gift” that will not only reduce taxes on daily essentials but also create a virtuous cycle of greater demand, investment, and job creation.
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Gold is sold at a discount in Dubai due to Middle East conflict disrupting flights. Traders offer up to $30 per ounce less than London prices.
Dubai Gold Selling Cheaper As Iran War Grounds Flights
Gold is being sold at a discount in Dubai as the widening conflict in the Middle East disrupts flights and hampers the movement of bullion from one of the world’s key trading hubs.
According to a Bloomberg report, traders in Dubai are offering discounts of up to $30 per ounce compared to the global benchmark price in London. The unusual price cut comes as shipments remain stranded due to flight disruptions triggered by the escalating conflict involving Iran and Israel.
Dubai is a key global centre for refining and exporting gold to markets across Asia, including India. However, partial airspace restrictions and heightened security risks have slowed the movement of bullion out of the region.
Why Gold Is Being Sold Cheaper
Gold is typically transported in the cargo holds of passenger aircraft. With several flights from the UAE restricted amid regional tensions, traders are struggling to move bullion to international markets.
At the same time, insurance and freight costs have surged, making shipments more expensive and uncertain. Many buyers have therefore stepped back from placing new orders, unwilling to bear high logistics costs without assurance of timely delivery.
To avoid paying prolonged storage and financing costs while shipments remain stuck, some traders are offering gold at discounted prices.
Although transporting bullion by road to airports in neighbouring countries such as Saudi Arabia or Oman is theoretically possible, logistics firms are reluctant due to the risks and complications of moving high-value cargo across land borders during a conflict.
What It Means For India
India, one of the largest buyers of gold shipped from Dubai, could face short-term supply disruptions if the situation continues.
Renisha Chainani, head of research at Augmont Enterprises Ltd., said several cargo shipments have already been delayed, creating temporary tightness in the availability of physical bullion in India.
However, industry experts as reported by Bloomberg say the immediate impact may remain limited as domestic inventories are currently comfortable after heavy imports earlier this year.
Chirag Sheth, principal consultant for South Asia at Metals Focus, said Bloomberg that India has ample stocks for now, but warned that prolonged disruptions could eventually affect supply if the conflict continues for several months.
Meanwhile, global gold prices have surged this year amid geopolitical uncertainty, with spot gold recently trading above $5,000 per ounce.
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March 08, 2026, 10:03 IST
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Some seven in 10 British adults without a full driving licence say learning to drive is currently unaffordable, according to a survey.
The figure is even higher among younger people, with 76% of 18 to 29-year-olds without a licence saying driving lessons are financially out of reach, the poll for car insurer Prima found.
Overall, 38% said the cost of driving lessons was the biggest deterrent to learning to drive.
Some 32% were put off by the price of buying a car and 15% said the cost of car insurance was the main barrier to learning to drive.
Almost half (45%) said they would consider learning to drive if it became significantly cheaper.
Nick Ielpo, UK country manager at Prima, said: “For a growing number of people, driving is no longer a symbol of freedom – it’s a financial stretch too far.
“Between lessons, buying a car and insuring it, the upfront and ongoing costs are pricing many people out before they even start.”
Find Out Now surveyed 1,134 adults who do not hold a full driving licence between January 21 and 23.
Go Digit General Insurance on Saturday said it has received a demand notice of about Rs 170 crore for short payment of goods and services tax (GST) for nearly five years. The company has received an order copy from the Office of the Commissioner of GST & Central Excise, Chennai South Commissionerate on March 6, confirming GST demand of Rs 154.80 crore levying penalty of Rs 15.48 crore and Interest u/s 50 of CGST Act, 2017 for the period July 2017 to March 2022, the insurer said in a regulatory filing. The company is in the process of evaluating the legal advice on the implications and would file an appeal, it said.
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