Good morning, The new Goods and Services Tax (GST) regime takes effect today. On Sunday, Prime Minister Narendra Modi called it the start of the "GST Bachat Utsav" (savings festival). Indeed, GST 2.0 reduces rates for over 375 common-use goods. Ahead of the rollout, companies went on an advertising blitz, flaunting lower prices and adding sweeteners like discounts, vouchers, and extra grammage. Amul and Mother Dairy, for example, have reduced prices on paneer, butter, and cheese. A packet of Pringles now costs 12% less, while Kellogg’s original cornflakes have dropped from Rs 399 to Rs 355. With the government urging businesses to pass on the benefits, households can look forward to healthier budgets. On that note, let’s get to today’s edition. 👇 🚨 Big Story The weekend was marked by uncertainty surrounding the future of many Indians who aspire to study and work in the United States. On Friday, US President Donald Trump signed an executive order that requires companies hiring overseas talent through the H-1B visa to pay $100,000 for each worker visa, starting September 21. This raises the cost exponentially from the earlier $1,500, which included various administrative fees. Why? The action, which fits into the Trump administration's broader anti-immigration stance, follows criticism over the alleged abuse of the H-1B visa programme. MAGA activists and supporters argue that American firms, particularly in the tech sector, hire cheaper foreign workers, depriving Americans of employment opportunities. The move will have an outsized impact on Indians and Chinese, who form a major chunk of the H-1B visa workers. Clarification: The announcement sent shockwaves through members of the Indian diaspora, with many abandoning work trips and vacations mid-way to return to the US before the deadline kicked in. Despite earlier contrary statements, the White House clarified on Sunday that the $100,000 charge was a "one-time fee” and would only apply to new visas, not renewals. The viewpoint: The move opens up another front in the India-US negotiations, which have already been strained by the US-imposed 50% tariff on Indian goods. According to sources, the Government is set to discuss the revised norms through diplomatic channels with American officials, and to reiterate how Indians, unlike illegal immigrants, contribute to the American economy. In the US, the announcement has sparked worries about filling critical positions and the nation’s competitiveness, especially in sectors like artificial intelligence, where talent remains limited. 🎧 For more on the H-1B visa fee, tune in to today’s ‘3 Things’ podcast episode. ⚡Only in Express US tariffs have raised concerns across Indian industry, but they also present an opportunity to drive change and strengthen competitiveness, says Rajiv Memani, Chairman and CEO of EY India. As President of the Confederation of Indian Industry (CII), Memani is working with the government to mitigate the impact of these external headwinds. Read all that he had to say on the subject in the latest Idea Exchange session. 📰 From the Front Page Fast-track: The Indus Waters Treaty (IWT) prohibited India's use of west-flowing rivers such as Chenab, Indus and Jhelum. However, with the IWT in abeyance in the aftermath of the Pahalgam terror attack, New Delhi is looking to revive the stalled work on the Sawalkote dam. The project, one of the largest on a western river, was envisioned in 1984, but was stalled due to Centre-state tussles. It now awaits environmental clearance. Follow the money: The National Investigation Agency (NIA) arrested CRPF Assistant Sub-Inspector Moti Ram Jat for allegedly leaking classified information to a Pakistani agent. The arrest has led investigators to a larger financial network used to fund espionage in India. The money was routed through unsuspecting clothing boutiques, Bangkok-based forex entities, and small businesses. Read. 📌 Must Read Shine bright: Over the last few years, economists have been studying night-time light to gauge the economic growth of a particular region. The logic goes that light is an indicator of development, as industries and businesses need electricity. A new study looks at the economic growth of Bihar through this lens. Tax-ing: While GST reforms are a welcome move, Sacchidananda Mukherjee, Professor at the National Institute of Public Finance and Policy (NIPFP), argues against exempting items from taxes. He opines that narrowing the tax base can place an unfair burden on taxable goods. In an interview with The Indian Express, Mukherjee looks at the impact of GST 2.0 and how states can recover the loss of revenue. ⏳ And Finally. I leave you with Sandip G’s incisive recap of the second India-Pakistan clash at the Asia Cup — a spectacle where raw emotion overshadowed pure competition. Spurred by the handshake snub in the previous game, Pakistan came out blazing in what was perhaps their finest outing of the tournament against India. Sixes and fours flew, catches were dropped, run-outs were missed, and tempers flared. Yet India matched the fire with composure and power, sealing a comfortable second win. That’s all for today, folks! Until tomorrow, Sonal Gupta
