Economists believe that rationalisation of GST tax slabs will improve overall consumer demand in the economy.
A simplified structure would reduce compliance burdens and encourage higher spending across key categories.
This comes at a time when global trade uncertainty is weighing on India’s exports.
Lower indirect taxes will especially benefit small businesses and retailers operat
ing with thin margins.
Consumer durables, electronics, and household items are expected to see stronger sales.
Inflationary impact on services could also moderate if the rate cut is implemented.
Formalisation of trade will likely expand the government’s tax base in the long ter
m.
Experts expect the GST move to lift momentum in FY26 demand growth.
Investors are closely watching for timelines and specific sector ra
te changes.
Stock market analysts predict higher activity in FMCG, retail, and auto sector
s.