Among big-ticket consumer items, automobiles, tyres, cement, air conditioners and large LCD televisions are currently in the 28% bracket.
Finance minister Nirmala Sitharaman said last week that the government would merge 10 state-run lenders to create four mega banks that would help facilitate the flow of credit.
Hindustan Unilever Ltd. warned that the consumer goods his company makes are “recession-resistant, but not recession-proof.”
The slump will put the onus on the Reserve Bank of India (RBI) to continue cutting interest rates after 110 basis points of easing already this year, the economists said.
Ratings company ICRA on Wednesday said the build up of debt means NHAI must either go slow on new projects or shift to a build-operate-transfer model involving equity-purchases by private players.
Prime Minister Narendra Modi, who returned to power in May with a bigger margin than in 2014, is witnessing the worst slowdown so far under his watch.