GST cut a partial cushion against trade headwinds, says Mahesh Nandurkar

GST rate cuts are definitely positive for consumption, especially with the festival season approaching, says Nandurkar

Markets cheered the cut in goods and services tax (GST) rates last week. Mahesh Nandurkar, managing director at Jefferies, tells Puneet Wadhwa in an email interview that for foreign institutional investor (FII) money to return to India, either valuations must moderate or growth expectations need to improve. Edited excerpts: 

Is the GST rate cut enough to cushion the impact of US tariffs? 

GST rate cuts are definitely positive for consumption, especially with the festival season approaching. The advantage is that these cuts are being implemented with limited fiscal impact, thanks to the conversion of GST cess into GST. They are