India, Aug. 18 -- India expects the GST rationalisation announced by Prime Minister Narendra Modi to boost the world's fourth largest economy and offset the fallout from higher US tariffs.

The proposed GST reforms, which will reduce the number of tax slabs to two from four (not including the zero percent slab), would benefit a wide range of sectors-from cars to cement and consumer goods-as well benefit businesses of all shapes and sizes, according to industry watchers.

According to government sources quoted by the Press Trust of India, nearly 90% of the items in the 28% slab will move to 18%. Almost all the goods in the 12% slab will move to 5%. That effectively means nearly all essential goods and household items will get cheaper.

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