Business
Trump’s ‘dead Economy’ Jibe Falls Flat As India’s GDP Growth Surges To 7.8%
New Delhi: In a major embarrassment for US President Donald Trump, who in a rhetorical overdrive termed India as a “dead economy,” the country’s economic growth has accelerated to 7.8 per cent in the April to June quarter, fortifying its position as the world’s fastest-growing major economy.
The strong economic performance amid the US tariff turmoil comes on the back of a 7.4 per cent growth in the previous Jan-March quarter (Q4 FY25).
The strong macroeconomic fundamentals of the economy are reflected in the high foreign exchange reserves, which are sufficient to finance 11 months of imports, and inflation is well under control.
(Also Read: Key Financial Rules Changing From September 2025)
Union Commerce and Industry Minister Piyush Goyal said on Friday that India’s exports this year will be higher than last year, reflecting the growing competitiveness and resilience of the Indian industry, while the government is reaching out to partner countries across the globe to open up new opportunities.
Goyal highlighted India’s expanding network of Free Trade Agreements (FTAs) with developed countries, including Australia, the UAE, Switzerland, Norway, Liechtenstein, Iceland, and the UK, with negotiations ongoing with the European Union and others.
These agreements will further open global opportunities for Indian industries such as construction, steel, and allied sectors, he pointed out.
Goyal further highlighted that several developed countries are eager to expand trade relations with India, noting that nations such as Qatar and the United Arab Emirates (UAE) have expressed keen interest in entering into Free Trade Agreements (FTAs) with India.
(Also Read: Key Financial Rules Changing From September 2025)
The minister’s assurance came in the backdrop of the hike in US tariffs on Indian exports to 50 per cent as a punitive step for buying Russian oil.
According to economists, the macroeconomic impact of the US hike in tariffs would be cushioned by the large size of India’s domestic market.
A recent Morgan Stanley report stated that India is the “best placed country in Asia,” amid the global uncertainty triggered by US President Donald Trump’s threat to jack up tariffs, because of the nation’s low goods exports to GDP ratio.
“While India is exposed to direct tariff risks, we believe on balance India is less exposed to global goods trade slowdown, considering that it has the lowest goods exports to GDP ratio in the region,” the report stated.
According to a Fitch report, the large size of India’s domestic market, which reduces reliance on external demand, is expected to insulate the country from the US tariff hike, with the economy expected to maintain a growth of 6.5 per cent in FY26.
Business
How Costly A House Should You Buy & How Much EMI Is Best? The 5-20-3-40 Formula Will Guide You
For most people, the dream of buying a house goes hand in hand with the fear of overwhelming debt. Home loans may have made ownership easier, but many buyers still struggle with questions of affordability: How expensive should the house be? How much down payment is enough? How big should the loan be? To answer this, financial experts point to a simple but effective calculation: the 5-20-3-40 formula. (News18 Hindi)
This four-part rule lays out the balance between income, down payment, loan amount, and monthly installments in clear terms. It begins with the 5 percent cushion, which suggests that a buyer should always keep at least five percent of the property’s value in cash. On a Rs 50 lakh house, that comes to Rs 2.5 lakh readily available to manage initial costs or emergencies. (News18 Hindi)
The second component is the 20 percent principle, which emphasises that a buyer should ideally cover one-fifth of the home’s cost upfront, keeping the loan capped at 80 percent of the property’s price. Financial planners say this step is crucial because it reduces the interest burden and shortens the repayment period. (News18 Hindi)
The third measure, known as the 3X rule, links the value of the house to the buyer’s income. The advice is straightforward: never buy a house priced at more than three times your annual earnings. So, someone making Rs 15 lakh a year would be safe purchasing a home worth Rs 45 lakh, but stretching beyond that amount risks straining long-term finances. (News18 Hindi)
Finally comes the 40 percent ceiling, which applies to EMIs. The formula warns against committing more than 40 percent of monthly income to loan repayment. For a buyer earning Rs 1 lakh a month, the EMI should not exceed Rs 40,000. Staying within this limit ensures there is still room to manage daily expenses, savings, and unexpected costs. (News18 Hindi)
Taken together, the formula provides a realistic picture of what a person can afford. Consider an example: a professional earning Rs 15 lakh annually wishes to buy a house worth Rs 45 lakh. According to the formula, they should have Rs 2.25 lakh in cash for the initial cushion, make a down payment of Rs 9 lakh, borrow no more than Rs 36 lakh, and limit their EMI to around Rs 30,000 a month. In this case, the purchase falls comfortably within all the recommended limits, leaving the buyer financially secure while pursuing home ownership. (News18 Hindi)
Experts stress, however, that while the 5-20-3-40 formula offers a valuable framework, it should not be treated as an unbreakable law. Each household has its own financial realities, whether that includes children’s education, health care needs, or investment goals. The formula is best used as a guide, a way to set boundaries that prevent overextension, while still allowing flexibility depending on individual circumstances. (News18 Hindi)
Last Updated:
Govt plans a two-slab GST reform by Diwali 2025, cutting rates on cement and materials, promising 8-15% savings for homebuyers and transforming real estate with transparency.
The GST reform is expected to particularly benefit affordable housing, with ripple effects across the sector.
Authored By Sahil Agarwal
India’s real estate sector stands on the brink of a revolutionary transformation as the government proposes a simplified two-slab GST structure, replacing the current complex four-tier system. Expected to roll out by Diwali 2025, this reform promises substantial savings for homebuyers while fundamentally reshaping the real estate industry.
The proposal consolidates GST into just 5% and 18% slabs, eliminating the existing 12% and 28% brackets. Research by ClearTax indicates that 99% of items in the 12% bracket will move to 5%, while 90% of items in the 28% bracket will shift to 18%. This rationalization will significantly lower construction costs, with homebuyers emerging as the primary beneficiaries.
Cement, currently taxed at 28%, will drop to 18%, a 10 percentage point reduction. Paint and other construction materials will see similar cuts. These reductions are expected to translate into 8-15% savings for residential buyers. For a Rs 50 lakh apartment, this could mean potential savings of Rs 4-7.5 lakhs.
Industry surveys suggest the reform will alter how developers approach project planning and pricing. With simplified tax structures and lower input costs, the focus will shift from tax optimization to customer value creation. Developers are likely to adopt transparent pricing models and customer-first strategies, broadening the homebuyer base and compelling innovation in design, amenities, and financing partnerships.
The reform is poised to particularly benefit affordable housing, with ripple effects across the sector. Price-sensitive buyers in tier-II cities such as Pune, Ahmedabad, Kochi, and Indore are expected to drive unprecedented demand growth. Data from ASSOCHAM indicates the simplified GST structure will bring millions of first-time buyers into the market. Developers will need to tailor projects for young professionals and growing families, reshaping portfolios and accelerating residential expansion beyond metros.
On the supply side, the two-slab structure will revolutionize real estate operations. Predictable tax rates will enable developers to forge long-term supplier relationships and streamline procurement, reducing project timelines and enhancing quality. Simplified compliance will free up resources for PropTech adoption, digital customer experiences, and process automation, modernizing industry operations.
Banks and housing finance companies will also benefit, with clearer cost structures leading to faster loan approvals and innovative financing products. Stronger partnerships between developers and financial institutions are expected, expanding homebuyer financing options. Smaller developers will gain from reduced compliance costs, while larger players will need to compete on innovation and customer service rather than tax structuring expertise.
Ultimately, the industry will witness a clear shift toward innovation, customer focus, and operational efficiency. This reform represents one of the most significant structural changes in Indian real estate in decades — one that promises to democratize homeownership while driving transparency, efficiency, and customer-centric growth across the sector.
(The author is the chief executive officer of Nimbus Realty)
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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Andy GiddingsBBC News, West Midlands
Telford Crisis SupportSchemes offering help to families struggling with the cost of school uniforms have reported a growth in demand this summer.
It comes after the average cost of a school uniform was just over £340 for primary school children and around £454 for those in secondary education, government figures indicated earlier this year.
The charity Parentkind produced research this month which suggests 30% of parents go without food or heating to afford uniform and 45% rely on credit cards.
Erin Aston, from Telford Crisis Support, said: “If somebody can’t afford food they might not be able to afford other items like uniform.”
The charity runs a scheme which has been giving free school uniform to children in the Telford area since 2019 and it has grown year-on-year.
‘Branded items expensive’
In its first year it received 125 requests, but Ms Aston, the charity’s coordinator, said this year it had received 320 requests in August alone and a similar number in July, with those two months the most busy.
The charity is helped by the local authority as well as businesses and community groups.
Buying school uniform could be expensive, Ms Aston said, especially branded items such as blazers and PE kit, which are often in short supply at the charity.
But she said legislation, due to come in next year, which will limit the number of branded items schools can ask parents to buy would be a big help.
Zoe TurnerZoe Turner runs a similar scheme in nearby Shifnal, which collects donated school uniforms and then gives them away for a donation of just £1 per item.
She set up Uniforms Together at the start of the year, initially to help parents with the cost of Scouts uniform, which she said was in limited supply at charity shops.
She has been supported by Woods, the local dry cleaners, which cleans the clothing and serves as a collection point and by St Andrew’s Church, which provides venues for the sales.
‘World Book Day help’
Ms Turner said 236 items went in her first sale, in April, and another 370 were snapped up this summer, with another sale due next month, with all money going to local church groups for children.
She said her group had become “really busy” and was now taking donations for schools outside Shifnal.
Her next move is to offer prom clothes and costumes for World Book Day, but storage space has become an issue, so she has asked local businesses if they have room they can give up.
Wolverhampton City Credit UnionWolverhampton City Credit Union gives a different form of support.
Since last year it has been offering to match pound-for-pound the first £75 paid into one of its child savings accounts.
That extra money can then be spent on school uniforms.
‘Super, super busy’
Antoinette Kelly, who operates the scheme, said she believed: “Every child deserves the chance to have a new uniform on the first day of term.”
Last year 340 children were supported by the scheme and she said it had been “super, super busy” this summer.
The scheme is financed by the city council. and she expected demand this year to be even greater than last year and said it was better for families to use offers like this than to get into debt by taking out loans.
She also said Wolverhampton had numerous second hand uniform banks, based at community centres and churches around the city.
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