New Delhi, Sept. 2 -- The Indian government has announced a reduction in the indirect tax burden on consumers-to be achieved by rationalizing goods and services tax (GST) rates.

This follows an increase in 2025-26 to Rs.12 lakh per annum-almost five times our national per capita income-in the limit above which personal income tax is due, as stated in the Union budget. Are these fiscal policies, along with lower policy rates of interest, sufficient to revive consumer spending growth on a sustainable basis?

These measures could support faster GDP growth in the near term. However, fundamental concerns over household finances will likely return after a few quarters, restricting consumption and thereby also GDP growth.

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