NEW DELHI, Sept. 10 -- A cut in Goods and Services Tax (GST) rates, announced last week by the GST Council, could boost consumption demand by as much as Rs.1 trillion in the second half of this financial year, ease inflationary pressures, and cushion Indian businesses against risks from US tariffs under Donald Trump, analysts said on Wednesday.

Bank of Baroda (BoB) in an analysis estimated net consumption gain at Rs.70,000 crore to Rs.1 trillion, equivalent to 0.2-0.3% of GDP, likely beginning September.

"The impact might even be higher since the savings to consumers in terms of cess might also be translated into consumption demand," it noted, adding that the tax reform is expected to partly offset the hit from higher tariffs.

On 3 Sep...