Today's Brief 4/09/2025

1 . GST Council :

(General Studies-III (250 marks)Technology, Economic Development, Biodiversity, Environment, Security, and Disaster Management)

In a landmark decision aimed at providing significant relief to common citizens, farmers, and industries, the GST Council has approved a major restructuring of tax rates, effective from September 22, 2025.

The most notable change is the rationalization of the existing four-slab structure into a simplified two-slab system of 5% and 18%, with a new 40% rate introduced for luxury and "sin" goods.

This reform offers substantial benefits to the common man, particularly through the complete exemption of GST on individual health and life insurance premiums, a move intended to enhance insurance affordability and penetration.

Additionally, a wide array of daily essentials, including personal care items, various food products like ghee and bottled water, and household goods, have been shifted to the lower 5% slab.

The council also extended significant relief to farmers by reducing the GST on a range of agricultural machinery and fertilizers to 5%.

In the healthcare sector, the GST on numerous life-saving drugs and medical devices has been either eliminated or significantly reduced, bringing down the cost of critical treatments.

These widespread rate cuts are expected to alleviate financial pressure on households, spur consumer spending, and provide a much-needed boost to the agricultural and healthcare sectors, thereby contributing to broader economic growth and a more transparent tax environment.

2 . India’s Mineral Trading Exchange:

(General Studies-III (250 marks)Technology, Economic Development, Biodiversity, Environment, Security, and Disaster Management)

The Indian government has embarked on a significant initiative to establish a national mineral trading exchange, with the goal of revolutionizing the country's mineral market by enhancing transparency and efficiency.

This new platform, which will operate under the regulation of the Securities and Exchange Board of India (SEBI), is inspired by global exchanges like the London Metal Exchange.

Its core objective is to move away from the current system of opaque, private deals and instead foster a centralized, electronic marketplace where prices for a wide range of minerals are determined through competitive and transparent bidding.

This will not only ensure fair pricing for both miners and buyers but also strengthen India's strategic position in global trade by reducing its reliance on international price benchmarks.

By attracting more private investment into the mining sector, streamlining logistics with accredited warehouses and quality standards, and improving tax compliance, the exchange is poised to modernize the entire industry.

With a pilot launch anticipated for 2026, starting with key commodities like iron ore, this exchange represents a major step towards making India a more self-reliant and influential player in the global minerals market.

2 .Critical minerals Recycling : The Union Cabinet has given its approval to a ₹1,500 crore incentive scheme aimed at boosting the recycling capacity for critical minerals from secondary sources.

This strategic initiative, part of the National Critical Mineral Mission, is designed to enhance India's supply chain resilience and reduce its reliance on imports for these vital elements.

With a six-year tenure from FY 2025-26 to FY 2030-31, the scheme will incentivize the recycling of materials like e-waste, lithium-ion battery scrap, and catalytic converters from end-of-life vehicles. It is structured to benefit both large, established recyclers and new players, including startups, with a third of the outlay reserved for smaller entities.

The incentives will be provided through a two-pronged approach: a 20% capital expenditure subsidy on plant and machinery, and an operational subsidy linked to incremental sales.

The government anticipates that the scheme will not only help develop a significant annual recycling capacity of at least 270 kilotonnes, yielding 40 kilotonnes of critical mineral production, but also attract approximately ₹8,000 crore in investment and generate nearly 70,000 jobs. 

By promoting recycling, the government is addressing the long gestation period associated with traditional mining, ensuring a more immediate and sustainable supply of minerals crucial for the country's energy transition, defense, and high-tech industries.