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Finance Minister Nirmala Sitharaman on Wednesday announced that the government’s new GST reforms are set to put nearly Rs 2 lakh crore back into the economy,
directly benefiting the middle class and boosting festival season consumption. Speaking at a GST outreach programme in Visakhapatnam, Sitharaman said that after the new GST rationalisation:
- 99% of goods under the 12% slab will shift to 5%.
- 90% of items under the 28% slab will now fall into the 18% category.
- A two-slab GST system (5% and 18%) will now apply, making it simpler and more consumer-friendly.
“With this new-gen tax regime, people will have more disposable income, which will directly drive consumption and economic growth,” the FM said.
She highlighted that several FMCG companies and big corporates have already started announcing price cuts to pass on GST benefits to consumers, ahead of the Sept 22 implementation date. The government has also urged industry players to ensure the tax savings reach end customers.
Festival Season Demand to Surge
Experts believe the reforms will unleash a consumption boom during the festive period. Automakers are already expecting a surge in car and bike sales, while other consumer goods companies anticipate strong demand across categories.
India Emerging as Global GCC Hub
Later, addressing a Global Capability Centres (GCC) summit, Sitharaman said India’s GCC ecosystem is transforming the country into the world’s GCC hub, driving innovation, R&D, and job creation. She stressed that GCCs are generating intellectual property, patents, and sustainable growth opportunities, cementing India’s position in the global economy.
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