BL Morning report: September 23, 2025

Here are the top stories from businessline, September 23, 2025 GST rate cuts, income tax relief to have multiplier effect on GDP numbers: CEA Nageswaran Chief Economic Advisor V. Anantha Nageswaran says the recent GST rate cuts and Income Tax relief will significantly boost GDP through a multiplier effect, with a total impact estimated at over ₹2.5 lakh crore. He called GST 2.0 a landmark reform that will drive domestic demand. Despite concerns about a ₹48,000 crore fiscal hit from GST cuts and slower direct tax collections, he’s confident of meeting the 4.4% fiscal deficit target, citing strong non-tax revenues and festive season demand. On Trump-era tariffs, he expects a short-term drag on growth but says GST reforms could offset the impact. Long-term, he believes India’s FDI appeal remains strong. For Q2, GDP is likely to stay close to the 7% mark, based on current indicators. Student visa arrivals to US hit four-year low as Trump policies bite student arrivals to the US fell 19% in August year-on-year, hitting just over 313,000 — the lowest August number since 2021.  It marks the fifth straight month of decline, with overall student entries down nearly 12% for the year so far. The drop is most severe among Asian students, especially from India, where arrivals plunged 46%.  Tighter immigration rules, paused visa interviews, and increased vetting — including social media checks — have created major hurdles for applicants. Universities now face a projected $7 billion revenue loss this fall.  With international students contributing nearly $44 billion to the US economy annually, experts warn that continued declines could erode America’s leadership in science, technology, and innovation. Mid-size IT firms say “no significant impact” of new H-1B visa fee Mid-size Indian IT firms expect minimal impact from the new $100,000 H-1B visa fee, having already reduced their reliance on these visas.  Companies like Mphasis and Hexaware report low H-1B use, limiting near-term effects, while larger firms like LTIMindtree may face bigger losses. The sector’s shift to offshore work, which is more profitable, could offset revenue drops from fewer on-site projects. Analysts estimate a modest margin hit of 10-100 basis points by FY27, mainly affecting critical roles with no local alternatives.