GST 2.0: Fueling India's Economic Resilience Amid Global Uncertainty
The RBI bulletin discusses India's GST reform and its positive impact on the economy by promoting business ease, lowering retail prices, and bolstering consumption growth. Despite global trade uncertainties, India's economy shows resilience, with reforms aiding tax buoyancy. The article highlights robust growth supported by strong domestic drivers and structural reforms.
- Country:
- India
The Reserve Bank of India's latest bulletin has emphasized the transformative impact of the Goods and Services Tax (GST) reforms on the Indian economy. By simplifying tax rates and procedures, the GST 2.0 regime is promoting ease of doing business and pushing retail prices down, which in turn, strengthens consumption growth drivers.
The bulletin highlights that despite elevated global trade uncertainties, notably due to US tariffs, the Indian economy remains resilient. The economy has been buoyed by robust services exports, strong remittance receipts, and high-frequency indicators showcasing manufacturing and services activity at a decadal high.
With healthy corporate balance sheets and strategic government reforms, the growth outlook for the Indian economy remains optimistic. The GST reforms are expected to continue contributing to tax buoyancy and compliance while supporting the broader economy during a period of global fiscal and geopolitical uncertainty.
(With inputs from agencies.)
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