New Delhi, Sept. 17 -- The additional 25% tariff announced by America on Indian exports took effect on 27 August. With this, the total levy on Indian exports to the US stands at 50%. While we still think that these tariffs will come down after bilateral negotiations, they could dampen India's exports to the US over the next few months.

To counter their impact on economic growth and continue with reforms, India's government recently announced a simplification of the goods and services tax (GST) from a four-rate structure (5%, 12%, 18% and 28%) to a simplified two-rate regime of 5% and 18%.

Households looking to buy big-ticket items such as electronics and white goods may delay their purchases till these lowered rates become effective fro...