Report
Peter Warburton

India's inflationary twist

After 17 years, the Indian government has finally introduced the Goods and Services Tax (GST) which will subsume multiple indirect state and central taxes into one tax structure with four different rates: 5%, 12%, 18% and 28%. The new reform has been largely welcomed by most companies and consumers across the country, with many hoping that it will bring grater transparency and higher economic growth. Although the headline inflation rate in India has been on a downward trend since last year,  dropping from 6,1% in July 2016 to 2.2% in 2017, the new tax reform could usher in an inflationary surprise.

 

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Economic Perspectives
Economic Perspectives

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Analysts
Peter Warburton

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