India's tax reforms to ease prices, boost spending: RBI

India’s goods and services tax reforms should help lower retail prices and support consumption growth, the Reserve Bank of India said in its monthly bulletin released on Wednesday.

- YAGNOSENI DAS IRA DUGAL

Changes in tax rates kicked in this month, lowering prices of a number of everyday items ranging from toothpastes to air conditioners.

The GST reforms should “progressively result in a sustained positive impact through significant gains in ease of doing business, lower retail prices and strengthening of consumption growth drivers”, the bulletin said.

Higher seasonal agricultural sowing is also expected to keep food prices in check, it said.