How GST simplification can benefit southern states
Big changes came to India's GST from September 22—tax rates got simpler with a two-rate structure.
If companies actually pass these savings on, southern states like Kerala, Tamil Nadu, Andhra Pradesh, Telangana, and Karnataka will see the biggest benefits.
Kerala could see inflation drop by up to 1.37% points—a noticeable relief for both cities and villages.
Lower prices, more spending power
For people in the south, this could mean lower prices on everyday things and a little less pressure on wallets.
Experts at HSBC say overall inflation could fall by about one percentage point if all goes well.
The OECD even thinks inflation in the next financial year might stay below 3%, which may provide the Reserve Bank of India room to cut interest rates again—potentially making loans cheaper too.
Basically: simpler taxes now might lead to more spending power soon.