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Lower GST rates to spur consumption, drive growth: S&P
Business Standard
|November 25, 2025
The lowered goods and services tax (GST) rates, income tax cuts and interest rate reductions are likely to make consumption a greater driver of India's growth compared with investment in the current and next financial year, credit rating agency S&P Global said on Monday.
"Lowered GST rates will support middle-class consumption and complement income tax cuts and interest rate reductions introduced this year.
These changes are likely to make consumption a greater driver of growth compared with investment, in this financial year, and the next," the rating agency said in its latest Economic Outlook for the Asia-Pacific region, while retaining its growth forecasts for India unchanged at 6.5 per cent for FY26 and 6.7 per cent for FY27.
This story is from the November 25, 2025 edition of Business Standard.
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