After a long series of debates, disputes, out of the house talks and negotiations, the upper house of the parliament cleared the long-awaited GST bill finally. Since it was almost impossible to get a unanimous support on it, economists were worried about the possibility of getting it through. However, it is certainly a great moment in the Indian history where politicians came out of their egos and ideological differences and cleared it.
As the much-needed bill gets a green signal for implementation, everyone is busy in assessing the impact of it on the economy. As far as FOREX trading in India is concerned, economists are quite confident that the Indian economy and in turn the price of Rupee against all major currencies will improve drastically.
There will be a jerk initially, experts anticipate
Experts are undivided on the fact that there will be a setback immediately after the implementation of GST. The inflation will increase and the tax rates will also increase for a few services. However, it will be a temporary phase, and the situation will dramatically improve after that.
It is needless to say that online forex trading in india will also feel the heat of inflation. The price of rupee may drop and contribute to the inflation further.
Boost in the GDP will correct the situation subsequently
According to estimates, GST will boost the GDP after some time. In the second half of 2017, it may boost it up to 2 percent which is a phenomenal increase. However, there are disclaimers in it. Since the effective implementation is the key to success of any reform, the government will have to show extreme care and sincerity while implementing it. As far as FIIs are concern, they show a bearish trend in the light of GST. The reason could be the fear of losing ground in the competitive environment post GST.
How to mitigate the risks of currency trading india?
As far as mid-futures are concerned, experts recommend staying short. The prices of USD with respect to INR will reach the low levels, but will come back subsequently. The similar trends look in the USD and GBP market.
It is needless to say that all these are speculations and assumption. The actual impact will be seen after a few days. Implementation of GST is going to change the Indian economy remarkably. It will shape the future of India; there is no doubt about it.