GST 2.0 A Landmark Event, Expect More Reforms: Madhusudan Kela

Market veteran Madhusudan Kela, Founder of MK Ventures, has said the GST reforms, announced by Finance Minister Nirmala Sitharaman, on Wednesday night, mark a landmark moment for the country and could go a long way in boosting consumption.

"This is a landmark move for the country and has a significant impact for boosting demand," said Kela in an exclusive interview to NDTV Profit. He also lauded the government's efforts to boost liquidity and consumption in the country.

On Sept. 3, the Government announced significantly reduced GST rates on a wide array of goods, which will be applicable from September 22.

From daily FMCG products, cars and white goods to insurance, most products are expected to get cheaper for an average Indian consumer.

Kela heaped praise on the government's proactiveness, stating, "The Government has been very proactive in tackling difficult situations like tariffs and taking measures to spur growth

"The government seem to be in a determined mood to do a lot more apart from GST reduction, like ease of business, among other things."

The market veteran urged the Government to continue the path of deregulation and promote ease of doing business, labelling them as key levers for the India growth story.

As far as GST is concerned, the MK Ventures Founder added that the move will lead to a higher share of premium value to India's economy.

"GST Reduction will lead to consumption to increase and also move up the premium value share," he said.

Earlier in the day, brokerages have collectively stated that the GST move will indeed lead to higher consumption and add ample value to India's economy, despite the short-term revenue loss.

At a time when Indian markets have been wrought by cautious sentiment and geopolitical uncertainty, Kela is hopeful of seeing foreign investors return to India when the headwinds eventually disappear.

"FPI Flows base is very high of almost $800 billion and a $5 billion sale by FPI investors should not concern us," he said.