The government’s sweeping reduction of goods and services tax rates, unveiled on the eve of the festive season, is more than a routine fiscal tweak. It is a political and economic signal aimed at reviving consumption, boosting confidence, and nudging Indians toward a self-reliant economy even as trade tensions with the United States sharpen.

The timing is astute. From Durga Puja through Diwali and into the wedding months, household spending surges across India. By lowering GST on a wide range of essentials and semi-luxuries ~ everything from milk and life insurance to small cars, television sets, and air conditioners ~ the government has ensured that the benefits land precisely when consumers are most likely to spend. Lower interest rates and earlier income-tax relief add fuel to this seasonal stimulus.

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The immediate beneficiaries are obvious: middle-class families gain purchasing power, and companies selling consumer goods and vehicles enjoy a demand........

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