The overall progress on the reforms front will help improve macros and a change in composition in the Rajya Sabha would facilitate passage of key Bills such as GST and bankruptcy code, DBS said in a note.

The second half of the Budget session got under way today.

According to the global financial services firm, the second half will be equally important as focus returns to the the crucial bankruptcy code and the Goods and Services Tax Bill.

"There were encouraging signs that the revised bankruptcy code will be tabled in Parliament mid-week and a broad consensus has been arrived," DBS said in a research note.

"The ruling government, meanwhile, does not have a majority in the Upper House, but there is speculation that the members' rotation in the second half of this year might weaken the Opposition's stronghold and tilt support in favour of the Goods and Services Tax (Bill)."



GST is a long-awaited and important piece of legislation that aims to simplify and standardise India's tax structure. The GST Bill requires an amendment to the Constitution, for which two-thirds majority is needed in each House of Parliament.

"Passage of the GST Bill will be a boost to revive the Make-in-India policy and improve ease of doing business by subsuming a plethora of taxes/exemptions in the system," DBS said.

The 13th Finance Commission taskforce had estimated a growth lift of 0.9-1.7 percentage points from the nation-wide unified tax. Given these benefits, the Bill's passage assumes a lot of importance.

"However, given the possibility of stiff resistance on this Bill, the government will need to reach out to the Opposition to gather support," the report said.