The Indian rupee started the day on a positive note, appreciating by 6 paise against the US dollar. This was supported by strong foreign institutional investor (FII) inflows and a decrease in global crude oil prices. Forex traders expect the rupee to stay within the 85.40-90 range due to mid-month demand for oil, defence, and government-related payments. The interbank foreign exchange market opened at 85.53 and later saw a rise to 85.51, marking a 6 paise gain from the previous day's close. According to experts, the rupee trade is likely to remain subdued as markets wait for updates on the US-China trade agreement.
In response to growing concerns about pilot fatigue and its impact on flight safety, the Directorate General of Civil Aviation (DGCA) has published draft guidelines for a new Fatigue Risk Management System (FRMS) for airlines. With India's aviation sector experiencing significant growth, experts emphasize the need for proper management of pilot fatigue, which can affect reaction time, decision-making, and safety outcomes. Under the proposed system, airlines will have the option to implement FRMS or a hybrid model, with strict oversight from the DGCA. However, the success of these measures will ultimately depend on how seriously airlines prioritize and implement them.
Giorgio Armani, the visionary fashion designer, passed away at the age of 91, leaving behind a meticulously crafted business empire. With no children to inherit the company, he established the Giorgio Armani Foundation to safeguard his legacy and ensure the brand's independence and culture. Through strategic planning, including a diverse leadership structure and restrictions on mergers and public offerings, Armani ensured that his business will continue to thrive after his passing. His legacy serves as a beacon of stability and integrity in the ever-evolving world of fashion.
The Indian rupee weakened by 23 paise to 85.84 against the US dollar in early trade due to increased demand for the greenback from importers at the end of the month. Despite positive domestic equities and foreign fund inflows, challenges such as liquidity constraints and concerns about reciprocal tariffs continue to pressure the rupee. This comes after the rupee had gained 37 paise on Monday and strengthened by a total of 154 paise over the last seven trading sessions.
On September 3, 2025, the Indian stock market saw a significant rise as the GST Council announced a major reduction in GST on various electronic products and home appliances. This led to renewed hope for consumers, with many speculating if smartphones would become cheaper as well. However, the government has clarified that the GST on mobile phones will remain at 18%, with no change in the tax applied. This news, coupled with favorable global developments, boosted the BSE Sensex and Nifty, opening at 81,456.67 and 24,980.75 respectively.
The upcoming Gau Mahakumbh 2025 conference in Jaipur is set to bring together global entrepreneurs, farmers, and agri startups to explore the vast potential of the cow-based economy. The event will feature an exhibition of indigenous cow breeds and products, as well as discussions on cutting-edge technologies and sustainable agricultural practices. With a focus on generating export and employment opportunities, the conference aims to raise awareness about governmental support for the cow sector.
In a major revamp of the Goods and Services Tax (GST) regime, the government has decided to reduce taxes on certain consumer durables, including televisions and air conditioners. However, smartphones, one of the highest-demand categories in India, will see no change in their prices as they remain under the 18% tax slab. Industry experts had predicted this outcome due to the government's need for revenue, but this decision has sparked debate as smartphones continue to be an integral part of daily life. While consumers can expect festive discounts on TVs and ACs, their next smartphone purchase may not get any cheaper due to taxes.
Finance Minister Nirmala Sitharaman has announced major changes in the GST structure to ease tax burden for common people and promote consumption in the economy. The new two-slab structure, with rates of 5% and 18%, replaces the previous four-slab system. Essential items will be charged lower rates while sin and luxury goods will be taxed at 40%. This move is expected to have a positive impact on FMCG, healthcare, and auto sectors.
The GST Council has approved new rates for hundreds of goods and services, but tobacco products will continue to operate under the existing system until the government repays loans taken during the pandemic. Finance Minister Nirmala Sitharaman has stated that the loan repayments will happen within this calendar year, and once they are met, there will not be any cess and these items will attract a special rate of 40%. While many have praised the two-tier rate structure and decreasing rates for common man's daily use items, concerns remain over the potential revenue implications for both the Centre and state governments.
The Centre is proposing a 5% tax on electric vehicles as part of its ambitious overhaul of the Goods and Services Tax (GST). This proposal, which also includes simplifying the GST structure to just two tax rates and a potential 40% rate for luxury items, aims to lower prices of daily-use items and ease the burden on consumers. However, opposition-ruled states are demanding compensation for potential revenue loss. The two-day GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, will deliberate on the proposal before announcing final decisions on September 4.