Why Modi Is Turning to Tax Cuts to Offset US Tariff Hit to India

India’s Prime Minister Narendra Modi is seeking to overhaul the country’s complex goods and services tax, in an attempt to boost domestic spending and cushion the economic blow of US tariffs.

The economy already isn’t expanding fast enough to meet Modi’s goal for India to become a developed nation by 2047, and growth could slow as the higher tariffs imposed by India’s largest trading partner threaten a slump in exports.