GST Rate Cut to Boost Consumption; Key Sectors and SMEs Set to Benefit

Rahul Singh, CIO-Equities, Tata Asset Management

“The GST rate rationalisation, following the income tax cuts and lower interest rates, is a serious effort to boost consumption and hence the overall economic growth outlook. A wide range of products and some services will now be at lower rates which is a positive surprise. This coupled with certain process reforms is also positive for SMEs. While the direct beneficiaries include consumer, autos, cement, healthcare and insurance sectors, the second order beneficiaries in terms of growth will be retail banks & NBFCs.”