New Delhi, Aug 20
Nomura has maintained its forecast for India’s economic performance in FY26, projecting GDP growth at 6.2 per cent and consumer price inflation at 2.7 per cent.
The Japanese financial services major's outlook comes as the government prepares for a major restructuring of the Goods and Services Tax (GST) system -- a reform that has been pending for years.
Currently, GST is levied under four slabs -- 5 per cent, 12 per cent, 18 per cent, and 28 per cent. The Centre has proposed a rationalisation, cutting the structure down to two core slabs of 5 per cent and 28 per cent, while also introducing a new 40 per cent rate for sin and luxury goods.
While eliminating the 12 per cent and 18 per cent brackets could theoretically shave 0.19 per cent off GDP growth, states are expected to push back, as the rejig could mean revenue losses without adequate compensation.
Analysts expect policymakers to protect high-revenue-generating goods and services by keeping them in the higher tax bracket.