Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday said that the implementation of the new Goods and Services Tax (GST) reforms will not only bring immediate relief to consumers but also boost India’s gross domestic product (GDP) growth by 0.8 per cent, strengthening the country’s economic momentum at a time of global uncertainty.
Speaking to ANI on the day the reforms came into force, Puri said, “Apart from Navratri, the budget utsav has begun. There is a wave of happiness and celebration among people wherever you look. GST rates have been reduced, which will benefit all sections of society. But we are celebrating something else – these reforms can boost the GDP by 0.8 per cent. Our path towards a Viksit Bharat goes through self-reliance, and these reforms have been welcomed by all sections of society.”
Puri underlined that the lower middle class and economically weaker sections will benefit the most as GST rates on several consumption items have been reduced, and in some cases, completely removed. He also highlighted India’s economic progress, noting that the country’s economy has expanded from $2 trillion in 2014 to $4.3 trillion and reaffirmed the government’s commitment to achieving a $10 trillion economy in the coming years.
“These steps come at a crucial time when the global economy is facing uncertainty. We want India’s economy to become even stronger and more resilient,” he added.
Prime Minister Narendra Modi, addressing the nation on Sunday via video conferencing, linked the rollout of the Next Generation GST reforms to the government’s larger reform agenda. Calling reform a “continuous process,” PM Modi said the changes were designed to meet the nation’s “current needs and future dreams.”
PM Modi also announced that 25 crore Indians have overcome poverty in the last 11 years, giving rise to a dynamic “neo-middle class.” He described the reforms as the start of a nationwide GST Bachat Utsav (Savings Festival), which he said would “enhance savings and make it easier for people to buy their preferred items.”
“The benefits of this savings festival will reach the poor, middle class, neo-middle class, youth, farmers, women, shopkeepers, traders, and entrepreneurs. In this festive season, every household will experience increased happiness and sweetness,” the Prime Minister said, adding that the changes would simplify compliance, boost manufacturing, lower consumer prices, and make investments more attractive.
The reforms, approved during the 56th GST Council meeting, are expected to provide a strong push to sectors ranging from agriculture and automobiles to FMCG and renewable energy, while widening the tax base and strengthening MSMEs.
(With inputs from ANI)
