Brief by Shorts91 Newsdesk / 03:45am on 05 Sep 2025,Friday India
A recent report from Standard Chartered Global Research estimates that India’s GST rate cuts—implemented mid-year—could boost GDP by 0.10–0.16 percentage points annually and lower CPI inflation by 40–60 basis points. However, given the staggered rollout, the FY26 impact may be halved, with more gains expected in FY27. The combined federal and state revenue loss is estimated around ₹48,000 crore (0.16% of GDP), potentially widening the deficit by 0.15–0.20%. Still, improved tax processes like faster registration and refunds could enhance ease of doing business and boost medium-term growth.
