Crisil’s chief economist predicts that recent GST cuts, combined with low food inflation and income tax relief, could significantly boost consumption among Indian households ahead of the festive season. Middle-class and mass-market segments are expected to benefit most, especially in categories like apparel, electronics and personal care. The stimulus effect is expected to flow through quickly. Concerns remain about fiscal cost and whether inflation pressures may disrupt pass-through, but overall outlook is improving for consumer-facing stocks.
Crisil’s chief economist predicts that recent GST cuts, combined with low food inflation and income tax relief, could significantly boost consumption among Indian households ahead of the festive season. Middle-class and mass-market segments are expected to benefit most, especially in categories like apparel, electronics and personal care. The stimulus effect is expected to flow through quickly. Concerns remain about fiscal cost and whether inflation pressures may disrupt pass-through, but overall outlook is improving for consumer-facing stocks.
GST cuts and low food inflation set to drive household demand and consumption ahead of festivals.
Crisil’s chief economist predicts that recent GST cuts, combined with low food inflation and income tax relief, could significantly boost consumption among Indian households ahead of the festive season. Middle-class and mass-market segments are expected to benefit most, especially in categories like apparel, electronics and personal care. The stimulus effect is expected to flow through quickly. Concerns remain about fiscal cost and whether inflation pressures may disrupt pass-through, but overall outlook is improving for consumer-facing stocks.
Crisil’s chief economist predicts that recent GST cuts, combined with low food inflation and income tax relief, could significantly boost consumption among Indian households ahead of the festive season. Middle-class and mass-market segments are expected to benefit most, especially in categories like apparel, electronics and personal care. The stimulus effect is expected to flow through quickly. Concerns remain about fiscal cost and whether inflation pressures may disrupt pass-through, but overall outlook is improving for consumer-facing stocks.