New Delhi, Sept. 10 -- Consumption in India is expected to register a net gain of nearly Rs 1 lakh crore from September onwards, driven by the recent Goods and Services Tax (GST) rationalisation, according to a report by Bank of Baroda.

The report estimated that the net gain to consumption would be in the range of Rs 0.7-1 lakh crore, which amounts to around 0.2-0.3 per cent of the country's GDP.

It stated "We estimate the net gain to consumption of ~ Rs 0.7-1 lakh crore which amounts to ~ 0.2-0.3% of GDP, (anticipated from Sep onwards)".

It added that the impact could be even higher as the savings made by consumers from reduced cess may also translate into higher demand.

The rationalisation has kept most daily household items, includ...