Big gains predicted for discretionary goods after India’s GST revamp
CNBC · New
CNBC
New
Rajiv Batra, Head of Asia & Co-Head of Global Emerging Markets Equity Strategy at JPMorgan, explains why sectors producing consumer discretionary products are the biggest winners of the GST changes in India. He says consumers will not spend more on staple goods and instead use their savings for purchasing aspirational commodities.
Breakdown
- GST overhaul reduces tax slabs from four to two and lowers rates.
- Discretionary goods like durables, apparel, and autos are expected to benefit most. 28s
- GST cuts also apply to sectors like cement and insurance, making some premiums GST-free. 1m 5s
- Lower costs may lead consumers to increase spending on aspirational and investment products. 1m 15s
- NBFCs and retail banks are seen as indirect beneficiaries of the GST changes. 1m 43s