Indian Prime Minister Narendra Modi has announced the most sweeping overhaul of the Goods and Services Tax since its 2017 launch, pledging to simplify the current four-rate structure and abolish the top 28% slab. Under the plan, most products now taxed at 12% and 28% would migrate to lower bands, making items such as electronics and packaged foods cheaper when the changes take effect around Diwali in October. The government bills the move as “next-generation” reform designed to boost consumption and ease compliance for businesses. IDFC First Bank estimates the cuts could lift gross domestic product by 0.6 percentage point over 12 months but trim federal and state revenues by roughly $20 billion a year—a strain officials say will be offset by faster growth and higher collections from a broader base. Modi framed the tax shake-up as part of a broader push for self-reliance and farmer protection, telling supporters he would “stand like a wall” against any trade deal that harms rural interests. The announcement follows U.S. President Donald Trump’s decision to raise tariffs on Indian goods to 50% later this month, a step that has heightened economic tensions between the two countries. Politically, the tax relief is expected to bolster the ruling Bharatiya Janata Party ahead of key state elections.