Harsha Vardhan Agarwal told NDTV Profit that the Indian economy will get a ‘double boost’ if trade talks are resolved between India and US, after the government’s recent next-generation GST reforms. GST 2.0 is set to give a major boost to India’s consumption and spur economic growth in the near-term.

The industry players expect that shifting to a new GST regime with reduced duties on FMCG products will boost consumption. However, it will trigger a ‘short-term disruption’ due to existing stocks under the current tax regime.

GST reforms have lowered tax rates on 375 items across various sectors including auto, FMCG, apparel, textiles, etc. The GST Council, in its meeting on Sept. 3, approved a two-tier structure of 5% and 18%, with a special rate of 40% on the tobacco and related products as well as ultra-luxury items.