New Delhi, Sept. 9 -- In his Independence Day speech, Prime Minister Narendra Modi promised sweeping goods and services tax (GST) reforms. The gift came early, with the GST Council approving the reforms last week. The GST slab rationalization, ready to be rolled out by 22 September, also promises to reform India's healthcare sector.







With taxes slashed on medicines, medical equipment, and insurance, GST 2.0 will cover India's entire healthcare sector. But investors do not seem enthused. Since Modi's speech on 15 August, pharma, healthcare, and insurance indices have corrected by as much as 2.4%. Even when the GST details came out on 4 September, the indices closed in the red.

What gives? Nuances have overpowered broader optimism. ...