GST Cuts Set to Sustain India’s Consumption Boost
Union Finance Minister Nirmala Sitharaman on Saturday said the recent Goods and Services Tax (GST) rate cuts have boosted consumer demand and are likely to sustain momentum in the coming months. She noted that businesses have started passing on tax benefits, reflected in stronger sales of automobiles and consumer goods.
Monitoring Prices Closely
Sitharaman also mentioned that the government is monitoring the prices of 54 essential items to ensure consumers receive the full benefit of tax reductions. She added that the GST reforms would play a crucial role in maintaining India’s robust consumption story.
Industry Estimates Positive Impact
According to analysts, the reforms could lift consumer spending by nearly 10%, potentially creating demand worth up to ₹20 lakh crore this year. Sectors such as electronics, durables, and automobiles are expected to be the biggest beneficiaries.
