Mumbai, Sep 2
The combination of the upcoming GST 2.0 reforms, rising rural incomes and easing inflation could set the stage for a major revival in India’s consumption story, a new report said on Tuesday.
The data compiled by Wright Research, an investment manager on smallcase, suggests that India’s consumption cycle, which has been sluggish for the past few years, has likely bottomed out and is now on an upward path.
If GST 2.0 is finalised in October, just ahead of the festive season, it could bring down consumer prices, boost demand, and encourage stronger household spending.
Among the expected changes, goods currently taxed at 12 per cent -- such as processed foods, affordable footwear, and certain wellness products -- may be shifted to the 5 per cent slab.