Big relief for the common man! The benefits of the GST rate cut will be more visible, with lower inflation in the future.:

News Topical, Digital Desk : India is projected to have inflation below 2 per cent and growth rate at 7.7 per cent in the financial year 2025-26, according to a report released on Tuesday.

HSBC Global Investment Research said that inflation in October was 0.25 percent. This reflected only a third of the impact of the GST rate cut in September. Therefore, further declines in inflation are likely in the future.

The report said, "We do not believe that the impact of the reduction in GST rates will be visible only in the short term. We believe that this will reduce the inflation rate in the long term. This will also have an impact on monetary policy."

Along with this, the research firm said that even in the financial year 2026-27, the country's inflation rate may remain 4 percent less than the RBI target.

The report stated that GDP growth is expected to remain strong through the December quarter, but growth could moderate slightly in March as the impact of the GST reform fades. Furthermore, factors such as cautious spending to meet fiscal deficit targets and a decline in exports due to tariffs will also contribute to this.

"The Indian economy appears to have recovered from signs of a slowdown triggered by inflation a year ago and is now in a stronger position. The robust GDP growth of 8.2 per cent in the September quarter benefited from cyclical growth as well as statistical anomalies," said Pranjul Bhandari, Economist/Strategist at HSBC Global Investment Research.

He further said that factors like strong rainfall, monetary policy, fiscal spending and GST reduction are together contributing positively to the momentum of the economy.

The Indian economy has achieved a robust growth rate of 8.2 per cent in the second quarter (July-September period) of FY26, which is significantly higher than the growth rate of 5.6 per cent in the same period of the previous fiscal.