Finance Minister Nirmala Sitharaman. — Bloomberg
NEW DELHI: India’s record tax cuts are expected to give only a limited boost to economic growth as consumers use the savings to cut back on their debt and the government curbs spending, according to an analysis by Motilal Oswal Financial Services Ltd.
The net effect of the US$12bil in tax cuts announced in the annual budget will probably be a 10 to 20 basis point increase in the growth rate in the fiscal year starting April 1, Motilal’s economists Nikhil Gupta and Tanisha Ladha wrote in a note.
