Chief Economic Advisor V. Anantha Nageswaran says the recent GST rate cuts and Income Tax relief will significantly boost GDP through a multiplier effect, with a total impact estimated at over ₹2.5 lakh crore. He called GST 2.0 a landmark reform that will drive domestic demand .

Despite concerns about a ₹48,000 crore fiscal hit from GST cuts and slower direct tax collections, he’s confident of meeting the 4.4% fiscal deficit target , citing strong non-tax revenues and festive season demand. On Trump-era tariffs, he expects a short-term drag on growth but says GST reforms could offset the impact . Long-term, he believes India’s FDI appeal remains strong. For Q2, GDP is likely to stay close to the 7% mark , based on current indicators.

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