India’s Big Consumption Boom: What’s Driving It? | CA Rachana Ranade

"And now it is expected that we will become the third largest economy in the world by 2028."

"He said that we'll now move down to only two slabs one 5% and one 18%. He has also said that we'll also introduce one more GST slab which will be 40% and that will typically be for sin goods and luxury goods. ... But apart from that 40% slab, we will be focusing only on two slabs now or we'll be boiling down to only two slabs right now which is 5% and 18%."

"FMCG it is expected that GST may go down from 12% to 5%."

"If you're talking about consumer durable something like TV, fridges, washing machine it's expected that GST rate will come down from 28% to 18%."

"In fact it is also expected that autos majority of the autos fall in the 28% category right now. that could also come from 28% to 18%"

"And the most one the most important one that I've been waiting for for quite a long time is insurance because currently insurance GST is around 18 in the 18% slab and we are really waiting to see it go as a GST exemption. If GST is boiled down to 0% for insurance, I'm sure it will have a positive impact on the overall insurance penetration in India as well."

"it has to be subjected to a GST council approval and if the council approves it it will be implemented around October 2025."

"No tax up to 12 lakhs rupees of annual income. So if you are a salaried individual, if your income if your salary is up to 12 lakhs, zero tax on that."

"if you have seen my yesterday's live stream uh you will be aware that today there is a Jackson Hole Symposium where Fed chairman Jerome Powell will also talk about their stance on whether US is keen on reducing interest rates or not. If he says that yes we are keen on reducing interest rates. It's a direct green signal for us also that there is a great chance we will also reduce interest rates in the coming monetary policy meeting."

"everyone knows what Trump is doing right now he has proposed a 50% tariff on India if it is not eased out what will happen could there be an impact on the X minus M that is exports minus import because exports could drop if we are at as high as 50%."

"while private capex remains subdued public capital expenditure has surged. So what we can see is that government is spending a lot on capex but private sector is not spending a lot on capex."

"muted domestic demand. If the overall urban and consumption rural consumption they are saying both have softened and with this overall weakness in the demand that is the reason why they are not spending a lot on capex."

"check GST collections. Always remember higher the GST collection ideally somewhere there's a boost to the overall spending of people. Boost to consumption."

"UPI volumes can also be an important tracker. More and more UPI transactions is equal to see UPI people like you and me, we these days carry mobiles only rather than carrying wallets. So more and more UPI volumes, more and more people are spending consumption theme."

"two-wheer demand, entry car sales. These are proxy for mass demand."

"FMCG rural volume growth can also be checked that is also an important tracker"

"and of course credit growth in retail and credit card spends that also acts as a good consumption tracker."