Commerce and Industry Minister Piyush Goyal has urged businesses to ensure that the benefits of lower GST rates are passed on to consumers, adding that industry leaders have committed to doing so. He said the reform would provide additional momentum to the economy, describing it as a win-win for MSMEs as well as larger industries.
Goyal noted that GST rationalisation would stimulate demand, support exports and strengthen overall economic growth, particularly at a time when economic indicators remain robust. He expressed confidence that India’s goods and services exports this year would surpass last year’s levels, while pointing out that the Government was working at pace to diversify outbound shipments.
The GST Council has approved a simplified two-tier rate structure, lowering taxes on several products, with the new rates effective from 22nd September. Goyal said the move follows earlier income tax benefits announced in the Union Budget, adding that together these measures represented “a very special year for consumers”.
According to him, the reforms would result in significant savings for buyers, with reductions of around 5% across many industries. He said lower prices would fuel demand, encouraging investment, job creation and a broader virtuous cycle of growth.
He further highlighted that the new regime would help exporters facing challenges such as the 50% tariff recently imposed by the United States on Indian exports, worth nearly US $ 49 billion. Exporters, he said, would now have greater scope to sell into the domestic market and mitigate losses arising from trade barriers abroad.
Commerce Secretary Sunil Barthwal said the rationalisation of GST rates was a decisive step towards strengthening India’s manufacturing base, empowering MSMEs and enhancing the competitiveness of Indian products both domestically and internationally. He described the move as one that supports the vision of Atmanirbhar Bharat while providing tangible benefits to producers, traders and exporters.
Goyal also stated that the Centre has encouraged large retail chains to buy products from textile exporters impacted by US tariffs. He noted that the Government’s Rs. 2,250 crore (US $ 254 million) Export Promotion Mission was making rapid progress and would soon be placed before the Union Cabinet for approval.
