GST 2.0, Tesla in India, and the Regional Aviation Boom: This Week's Financial Highlights
In this week's wrapup, we explore the need for a GST 2.0 reboot, Tesla's entry into the Indian market, the controversy over CAFE norms in the auto industry, the outdated MRP system, and the potential real estate boom fueled by regional aviation.
GstTeslaCafe NormsMrpRegional AviationReal EstateJul 19, 2025
It was once hailed as India’s biggest indirect tax reform. But eight years later, the Goods and Services Tax (GST) is beginning to show its age. Compliance fatigue is high, the Centre–State trust deficit is growing, and the four-rate tax structure has become a maze. We unpack what’s gone wrong, why the GST Council’s next meeting matters, and what the wishlist for GST 2.0 really looks like. Dive into our Monday newsletter to read the full story.
India’s auto industry is in a fight over carbon emissions. Under current Corporate Average Fuel Economy (CAFE) norms, companies must sell a mix of fuel-efficient cars to meet fleetwide CO₂ limits. However, Maruti Suzuki argues that the rules unfairly punish small cars like the Alto while rewarding heavier SUVs. Our Tuesday story breaks down the logic behind the rule, how other countries deal with it, and why it could end up pricing the Indian middle class out of affordable hatchbacks.
Tesla has finally entered India. But it’s not launching new models, hasn’t signed up for India’s EV incentive scheme, and hasn’t committed to a factory. We trace the history of Tesla’s on-again, off-again relationship with India, why the market is both ripe and difficult, and how other players may already have a head start in the market. You can read the entire story here.
Ever been annoyed by paying ₹3 more for milk just because it’s chilled? Or suspicious of a ₹999 T-shirt sold for ₹499? On Thursday, we dug into India’s Maximum Retail Price (MRP) system: a price cap that was meant to protect consumers but now feels outdated, opaque, and limiting. Retailers can’t adjust for logistics costs, and brands inflate MRPs only to offer fake discounts. So should India shift to a Suggested Retail Price model like in the West? Or just bring in more transparency through QR codes and digital tools? Read our Thursday newsletter to find out.
India has over 450 airstrips, but most are lying idle for years. That might change soon. With regional aviation startups, quick commerce logistics, and even real estate speculators betting on Tier-2 and Tier-3 skies, small aircraft could unlock the next infrastructure wave. Friday's story dives into how better air connectivity might reshape towns but also why pilot shortages, high costs, and regulatory gaps might slow things down. You can read it here.
It’s time to announce the winner of our previous weekly quiz. And the winner is… Varsha Haria! Congratulations. Keep an eye on your inbox, and we’ll get in touch with you soon to send over your Finshots merch. And for the rest of you, here’s your chance to win some exclusive Finshots merch. All you have to do is click on this link, answer all the questions correctly by 12 noon on July 25th (Friday), and tune in to our Sunday newsletter aka Sunny Side Up next week to check if you got lucky.
That’s it from us this week. Have a great weekend!
Frequently Asked Questions
What is GST 2.0 and why is it needed?
GST 2.0 refers to a proposed overhaul of India's Goods and Services Tax system. It aims to address issues such as compliance fatigue, trust deficits between the Centre and States, and a complex four-rate tax structure. The goal is to make the system more efficient and user-friendly.
Why are automakers squabbling over CAFE norms?
Automakers are disputing CAFE (Corporate Average Fuel Economy) norms because they believe the rules unfairly penalize small, fuel-efficient cars while rewarding larger, less efficient SUVs. This could make affordable hatchbacks less viable for the Indian middle class.
What is Tesla's current status in India?
Tesla has opened a showroom in Mumbai but has not launched new models, signed up for India's EV incentive scheme, or committed to building a factory. The company's entry into India is still tentative, and it faces competition from established players.
What is the issue with India's MRP system?
India's Maximum Retail Price (MRP) system is outdated and opaque. Retailers cannot adjust prices for logistics costs, and brands inflate MRPs to offer fake discounts. This system is being questioned, with suggestions to shift to a Suggested Retail Price model or increase transparency through digital tools.
How could regional aviation impact real estate markets?
Regional aviation, with its potential to connect Tier-2 and Tier-3 cities, could unlock new real estate opportunities. Better air connectivity might make these towns more attractive for investment and development, although challenges like pilot shortages and regulatory gaps could slow progress.
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