GST Rate Cuts Spark Optimism Across Corporate India; Set To Boost Consumption & Growth

Just a day after the GST Council delivered an early Diwali surprise with steep tax reductions, leaders from across India’s corporate landscape have welcomed the reforms as a much-needed boost to domestic demand and economic resilience.

The revised tax structure comes eight years after GST was first implemented and is being widely seen as a turning point in India’s economic strategy amidst global challenges.

Industrialists hailed the move as transformative.

Anand Mahindra, Chairman of Mahindra Group, urged for more reforms, noting, “We have now joined the battle. More and faster reforms are the surest way to unleash consumption and investment. Those, in turn, will expand the economy and amplify India’s voice in the world.”

Echoing similar sentiments, Sudarshan Venu, Chairman of TVS Motor, stated that the GST rate cuts would ‘turbocharge growth’ by making two-wheelers more affordable, thus encouraging both first-time buyers and those upgrading their vehicles.

Boost to Rural and Urban Consumption

Harsha Vardhan Agarwal, President of FICCI and MD of Emami, highlighted the multiplier effect of this policy, saying, “The government’s proactive step to reduce GST is a game-changing move that will significantly boost consumption across rural and urban India.”

He pointed out that when paired with income tax relaxations, low repo rates, and a good monsoon, the reform creates a favourable environment for sustained economic growth.

In a move seen as both humane and strategic, the government has removed GST on life-saving rare-disease and oncology treatments, and reduced rates on essential medicines and diagnostics.

Sheetal Arora, CEO of Mankind Pharma, said this shows a shift towards healthcare accessibility, adding, “It signals that affordability and innovation can go hand in hand.”

Input Tax Credit and GST 2.0

As part of the broader GST 2.0 roadmap, the government also announced that Input Tax Credit (ITC) mechanisms would be simplified.

Businesses will be able to use ITC more efficiently from 22 September onwards, further improving the ease of doing business.

Prices of air conditioners, TVs, and dishwashers are set to drop by around 10% as the government has slashed GST on these products from 28% to 18%.

Manish Sharma, Chairman of Panasonic Life Solutions, welcomed the move, saying the government has made products that were once considered aspirational far more accessible to consumers.

NS Satish, President of Haier Appliances India, noted that the tax cuts would not only spur demand but also strengthen the entire ecosystem—from manufacturing and distribution to innovation and retail.

“This will boost affordability and contribute meaningfully to India’s economic growth,” he said.

Industry leaders have strongly endorsed the GST reforms, and sectors across the board have extended their support.

These measures are actively stimulating consumption, driving investment, and creating employment, placing India on a stronger trajectory towards inclusive growth and self-reliance.

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