GST will not have any immediate impact on FDI, say experts

Though FDI inflow has been on the rise in the past three years, it is mostly on account of services

The decks have been cleared for the roll-out of the goods and services tax (GST), but experts feel the reform measure is unlikely to result in an immediate increase in foreign direct investment (FDI).

Shankar Khasnis, chief operating officer of the Bengaluru-headquartered Feedback Business Consulting Services, said the GST was merely a beginning. 

“This is not the ideal GST. It was, however, needed from a tax reforms perspective and the government has made a beginning with this slightly diluted version. One should not expect big-bang FDI inflow with this. It will, however, send a strong message regarding a transparent and