He added that while some staples may benefit, the impact will be smaller as many of these were already in the 5% category. Overall, he highlighted these two sectors as the key gainers from the GST changes.
On the broader impact, Badshah said that when taxation benefits were first announced in the budget, it marked the beginning of a shift towards consumption. While this initially had a limited impact on industrials, both consumption and industrial sectors have performed reasonably well this fiscal year, supported by steady government spending.He also said that the GST boost could further support consumption, but there are still some uncertainties regarding funding.
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Badshah believes the government should be able to support both consumption and industrial growth without straying from fiscal targets, provided tariff-related challenges are avoided.
He added that the government may need to explore other options to ensure both sectors continue to grow, creating a “twin-track” economy.
Badshah is optimistic about the electric two-wheeler space. While Invesco does not currently have exposure to Ola Electric, the fund does hold investments in companies like Ather Energy.
He noted that the sector still offers strong growth opportunities, supported by government incentives and rising adoption of electric vehicles.
Regarding the renewable energy sector, Badshah said many companies are poised for strong growth in the coming years. He highlighted that solar and other renewable businesses are still in the early stages of their growth cycle, and investors can expect a significant expansion phase over the next five to seven years.
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