, Columnist
India Needed Tax Reform. It Got a New Rate Card
The stock market’s muted response is at odds with the official hype around GST 2.0.
Expect speed bumps ahead for India’s tax reform.
Photographer: Prakash Singh/Bloomberg
A long-overdue reduction in India’s consumption taxes is yet to take effect, but Prime Minister Narendra Modi has already hailed it as the nation’s “biggest reform” since independence in 1947. The private sector is fully on board with the plan, with several carmakers announcing price cuts and some asset managers describing the move as a “landmark reset.”
But if the change is as dramatic as it’s cracked up to be, why is the stock market not impressed?