+
Ministers Hail GST Reforms for Boosting Growth and Spending
ECONOMY & POLICY

Ministers Hail GST Reforms for Boosting Growth and Spending

At a joint press conference in New Delhi, Union Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Railways and IT Minister Ashwini Vaishnaw highlighted the success of Next-Gen GST Reforms, implemented before Diwali as part of Prime Minister Narendra Modi’s vision for a simpler, more consumer-friendly tax system.

Sitharaman said that the government has reduced GST rates, simplified processes, and streamlined the tax structure from four slabs to two, ensuring faster decision-making and ease of compliance. “These reforms were implemented from the first day of Navratri and have been well received by the people,” she said.

The Finance Minister added that the new GST measures are not corrective but conscious reforms, reflecting close cooperation between the Centre and the GST Council. She confirmed that the benefits of the revised rates have been fully passed on to consumers across 54 monitored products since 22 September 2025.

Rs 2.5 Trillion in Tax Relief and Economic Uplift

Commerce Minister Piyush Goyal described the reform as one of India’s largest tax overhauls since independence, benefitting all 1.4 billion citizens. He said the government’s Rs 2.5 trillion relief through direct and indirect tax measures is “unprecedented and beyond imagination.”

He added that the GST overhaul has boosted consumer confidence, increased savings, and driven disposable income growth, reinforcing India’s position as the world’s fastest-growing major economy. “When essentials and infrastructure become more affordable, both demand and supply grow, creating a powerful multiplier effect,” he said.

Record Festive Sales and Manufacturing Growth

Minister Ashwini Vaishnaw highlighted how GST reforms have spurred growth in India’s electronics ecosystem, with sales surging by 20–25 per cent this Navratri season compared to last year. Major retail chains reported record sales across product categories, including televisions, smartphones, and appliances, reflecting strong consumer confidence.

Vaishnaw also noted that food prices have recorded a deflationary trend of around 2 per cent over four consecutive months, easing inflationary pressures on middle-class households and supporting sustained demand.

India’s electronics manufacturing sector has expanded sharply, generating 2.5 million jobs, while the country has surpassed a neighbouring nation to become a leading smartphone exporter to the US. A major global manufacturer now produces 20 per cent of its total output in India, underlining the country’s growing manufacturing strength.

Semiconductor Milestone and GDP Growth

Vaishnaw announced that semiconductor production has begun at CG Semi and Kaynes, marking a key step toward India’s goal of technology self-reliance.

Referring to last year’s GDP of Rs 335 trillion, Vaishnaw said Rs 202 trillion came from consumption and Rs 98 trillion from investment. This year, consumption has increased by nearly 10 per cent, adding Rs 20 trillion in spending — a clear sign that GST reforms are reinforcing the cycle of consumption-led investment and growth.

A Virtuous Cycle of Prosperity

The ministers agreed that the Next-Gen GST has simplified taxation, encouraged compliance, and supported India’s vision of inclusive, sustainable, and technology-driven economic progress. The reforms, they said, are designed to make India’s tax system globally competitive, investment-friendly, and beneficial for every citizen.

At a joint press conference in New Delhi, Union Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Railways and IT Minister Ashwini Vaishnaw highlighted the success of Next-Gen GST Reforms, implemented before Diwali as part of Prime Minister Narendra Modi’s vision for a simpler, more consumer-friendly tax system. Sitharaman said that the government has reduced GST rates, simplified processes, and streamlined the tax structure from four slabs to two, ensuring faster decision-making and ease of compliance. “These reforms were implemented from the first day of Navratri and have been well received by the people,” she said. The Finance Minister added that the new GST measures are not corrective but conscious reforms, reflecting close cooperation between the Centre and the GST Council. She confirmed that the benefits of the revised rates have been fully passed on to consumers across 54 monitored products since 22 September 2025. Rs 2.5 Trillion in Tax Relief and Economic Uplift Commerce Minister Piyush Goyal described the reform as one of India’s largest tax overhauls since independence, benefitting all 1.4 billion citizens. He said the government’s Rs 2.5 trillion relief through direct and indirect tax measures is “unprecedented and beyond imagination.” He added that the GST overhaul has boosted consumer confidence, increased savings, and driven disposable income growth, reinforcing India’s position as the world’s fastest-growing major economy. “When essentials and infrastructure become more affordable, both demand and supply grow, creating a powerful multiplier effect,” he said. Record Festive Sales and Manufacturing Growth Minister Ashwini Vaishnaw highlighted how GST reforms have spurred growth in India’s electronics ecosystem, with sales surging by 20–25 per cent this Navratri season compared to last year. Major retail chains reported record sales across product categories, including televisions, smartphones, and appliances, reflecting strong consumer confidence. Vaishnaw also noted that food prices have recorded a deflationary trend of around 2 per cent over four consecutive months, easing inflationary pressures on middle-class households and supporting sustained demand. India’s electronics manufacturing sector has expanded sharply, generating 2.5 million jobs, while the country has surpassed a neighbouring nation to become a leading smartphone exporter to the US. A major global manufacturer now produces 20 per cent of its total output in India, underlining the country’s growing manufacturing strength. Semiconductor Milestone and GDP Growth Vaishnaw announced that semiconductor production has begun at CG Semi and Kaynes, marking a key step toward India’s goal of technology self-reliance. Referring to last year’s GDP of Rs 335 trillion, Vaishnaw said Rs 202 trillion came from consumption and Rs 98 trillion from investment. This year, consumption has increased by nearly 10 per cent, adding Rs 20 trillion in spending — a clear sign that GST reforms are reinforcing the cycle of consumption-led investment and growth. A Virtuous Cycle of Prosperity The ministers agreed that the Next-Gen GST has simplified taxation, encouraged compliance, and supported India’s vision of inclusive, sustainable, and technology-driven economic progress. The reforms, they said, are designed to make India’s tax system globally competitive, investment-friendly, and beneficial for every citizen.

Next Story
Infrastructure Transport

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Next Story
Infrastructure Urban

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Next Story
Infrastructure Urban

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App