Chennai, Aug. 29 -- The Indian government's decision to rationalise the Goods and Services Tax (GST) will not only put more money into the common man's purse but also negate the effects of import duty hike by the US, states Dipanwita Mazumdar, Economist, Bank of Baroda.
In a report, Mazumdar said one can clearly see that the current reforms of reduction in tax rates have been targeted towards sectors whose share of exports to the US is higher in India's overall export profile.
"Textile, chemical products, poultry and dairy items, especially condensed milk, butter, ghee etc. would receive significant benefit from a lower tax rate," the report notes.
The sectors affected by the US import duty hike will benefit from the GST reduction as the...