Are GST Reforms a Game-Changer for the Auto Industry? Piyush Goyal Thinks So
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Synopsis
Union Minister Piyush Goyal highlights the significance of India's 10-year anniversary of 'Make in India,' asserting that recent GST reforms will greatly benefit the auto industry by reducing costs and enhancing job creation.
Key Takeaways
- GST rates reduced from 28% to 18% for the auto industry.
- Tractor GST lowered to 5%, boosting agriculture.
- Benefits of reform must reach consumers.
- Piyush Goyal emphasizes India's resilience during challenges.
- India positioned as a trusted global partner.
New Delhi, Sep 13 (NationPress) As India celebrates a decade of ‘Make in India’, it presents a perfect moment to elevate ambitions, fortify supply chains, enhance resilience, and play a crucial role in creating jobs, boosting exports, and promoting high-quality manufacturing within the automobile sector, remarked Union Minister of Commerce and Industry, Piyush Goyal.
The minister praised the recent GST reforms introduced under the guidance of Prime Minister Narendra Modi.
He stated that the reduction of GST rates from 28 percent to 18 percent represents a historic reform and a significant relief for the auto industry.
For tractors, the GST has been cut down to 5 percent, providing a substantial boost to the agriculture sector. Goyal emphasized that this reform warrants a standing ovation for the Prime Minister, as it will make spare parts more affordable, promote formalization, create jobs, and enhance demand throughout the value chain. He stressed that the advantages must be fully transferred to consumers.
Goyal claimed that this latest round of GST reform is the most significant change since Independence, benefiting every Indian. He asserted that there wouldn't be a single individual among India’s 1.4 billion citizens who wouldn't gain from these reforms.
Quoting the late Ratan Tata, he remarked: “Take the stones people throw at you and build a monument.”
He urged the sector and the nation to remain undeterred by challenges, stating that with confidence, resilience, and collaborative effort, India will continue to grow stronger.
The minister also commended India’s tenacity during the COVID-19 pandemic, highlighting that the country met every global commitment, from supplying medicines and vaccines to over 100 nations—many at no cost—to ensuring the availability of essential goods without exploiting the situation. He noted that this has earned India the trust of the international community, positioning the country as a reliable partner.
These comments were made during the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA) in the national capital.
Point of View
I believe that while the GST reforms are a significant step forward for the auto industry, it is crucial to ensure that the benefits are effectively passed on to consumers. The emphasis on resilience and growth amidst challenges showcases India's potential as a manufacturing hub.
NationPress
25/12/2025
Frequently Asked Questions
What are the recent GST reforms announced?
The recent GST reforms include a reduction in rates from 28% to 18% for the auto industry and a decrease to 5% for tractors, which is expected to boost agriculture.
How will these reforms impact consumers?
These reforms are expected to lower costs for spare parts and enhance affordability, ultimately benefiting consumers across the board.
Who is Piyush Goyal?
Piyush Goyal is the Union Minister of Commerce and Industry in India, who has been vocal about the importance of these reforms for the auto sector.
What is the significance of 'Make in India'?
'Make in India' is an initiative aimed at encouraging companies to manufacture in India, thereby boosting job creation and economic growth.
How did India handle the COVID-19 pandemic?
India upheld its global commitments during the pandemic, providing medicines and vaccines to over 100 countries, thus earning international trust.
