A tax overhaul timed for Navratri, a tariff wall in Washington, a visa fee that rattled Indian IT, the Fed’s first cut of the year and a rupee at record lows. Five stories from September, and the thread that ties them together.
September was the month India decided to lean on its own consumers. Almost every big economic story of the month pointed the same way: if the world was going to buy less from India, Indians would need to buy more from each other. Here are the five stories that mattered, and what connects them.
1. GST 2.0 arrived with Navratri
From September 22, GST moved to two main slabs of 5% and 18%. Cars, televisions, air conditioners and everyday toiletries got cheaper on the first day of the festival season, and carmakers reported a rush of bookings. The government estimates the net revenue cost at about ₹48,000 crore and is betting on higher spending to recover much of it.
2. The tariff started to bite
A month after the 50% US tariff took effect, exporters in Tiruppur, Surat and coastal Andhra reported cancelled and delayed orders. Pharmaceuticals and smartphones were spared, but labour-heavy industries were not. Talks with Washington continued without a deal.
3. The H-1B fee
On September 19 the US announced a $100,000 fee on new H-1B petitions. Indian IT stocks fell sharply on the news before the White House clarified the fee would not apply to renewals. The longer-term effect is likely more work moving to offices in India.
4. The Fed cut
The Federal Reserve cut US rates by 0.25 percentage points on September 17, its first cut of 2025. Lower US rates usually make Indian assets more attractive to foreign investors, but this month the tariff and visa news outweighed it.
5. The rupee kept sliding
The rupee touched record lows near 88.8 to the dollar as foreign investors sold Indian shares and the trade outlook darkened. On October 1 the RBI held its repo rate at 5.50%, raised its growth forecast to 6.8% and cut its inflation forecast to 2.6%, signalling room for a cut later if needed.
The thread: when exports face a wall, a country turns to its own shoppers.
Put together, September described an economy adjusting to a less friendly world by cutting taxes at home and accepting a weaker currency. Whether domestic demand can carry that load is the question October’s festival sales will start to answer.
Sources: GST Council; US executive orders and proclamations; Federal Reserve; RBI Monetary Policy Statement, October 1, 2025.
- GST was cut to two main slabs from September 22, timed for the festival season.
- The 50% US tariff began to show up in lost orders for textile and jewellery exporters.
- A $100,000 fee on new H-1B petitions hit Indian IT stocks.
- The Fed made its first cut of the year, and the rupee hit fresh lows near 88.8.
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