GST reforms, income tax relief to power festive consumption boom: FM Sitharaman, Piyush Goyal and Ashwini Vaishnaw

Retail, auto and electronics sectors have recorded bumper sales aided by sweeping tax and GST reforms, said three Union ministers on Saturday, October 18, indicating a strong start to India’s festive season quarter.

In a joint press conference on Dhanteras, which marks the beginning of five days of Diwali festivities, Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Information and Broadcasting Minister Ashwini Vaishnaw said these reforms are expected to give a major boost to consumption and investment in FY26.

Starting the presser, Finance Minister Sitharaman said the GST Council had “unanimously agreed that reforms were due and must be implemented before Diwali.” She added that rate reductions, slab rationalisation, and simplified registration processes were completed well in time for the festive season.

“The people of India have received GST reforms well,” the minister said, asserting that the new structure would make compliance easier and benefit both consumers and businesses.

'Double dhamaka for economy': Piyush Goyal on GST and tax reforms

Echoing similar sentiments, Commerce Minister Piyush Goyal called the reforms a “double dhamaka” for the economy, combining GST simplification with personal income tax relief.

“This year, the Prime Minister and the Finance Minister have invited Goddess Lakshmi to every Indian home,” he said, referring to the festive timing of the relief measures. He highlighted a ₹2.5 lakh crore boost in personal income tax savings, which he said was already reflecting in higher consumer spending.

Goyal also pointed to the IMF’s upward revision of India’s growth forecast and S&P’s recent rating upgrade as indicators of strong fundamentals.

“Inflation control has been a combined effort of the Finance Ministry and RBI,” he said, adding that “2025 will be a memorable year for all earners.”

Electronics sales up 20-25% in navratri: Vaishnaw

Information and Broadcasting Minister Ashwini Vaishnaw said festive consumption had surged, with electronics sales up 20–25% year-on-year during Navratri.

“Even 85-inch TVs were completely sold out,” he noted, citing robust upgrades in smartphones, air conditioners, and washing machines across income groups.

Vaishnaw added that electronics manufacturing was growing at a double-digit CAGR, directly employing 25 lakh people. Exports of smartphones to the U.S. have also risen, he said, while India’s second semiconductor plant began production last week.

He projected a 10% increase in total consumption this year—amounting to ₹20 lakh crore more than last year—driven by GST rate cuts and rising demand. “We are closely monitoring prices, and except for Portland cement, tax benefits are being passed on to consumers,” he said.