Should India Inc. Fully Transfer GST Rate Cuts to Consumers?

New Delhi, Sep 4 (NationPress) Union Minister of Commerce and Industry Piyush Goyal on Thursday called upon India Inc. to ensure that consumers receive the benefits of the recently announced GST rate cuts across various goods, aiming to enhance demand and stimulate economic growth.

Speaking at the Bharat Nutraverse Expo 2025, the minister stated that the reduction in GST rates would significantly uplift consumption demand. He mentioned that businesses can now aim for a higher volume of sales, creating a beneficial scenario for all involved. Goyal further asserted that companies stand to gain from expanded opportunities, while the complete GST advantage is passed onto consumers.

Goyal expressed gratitude to Prime Minister Narendra Modi for the "festival gift" to the nation. He highlighted that on August 15, the Prime Minister indicated a major reform and positive updates regarding GST. He noted that the extensive range of products benefiting from the transformative changes announced on Wednesday was unexpected.

The minister urged the industry to ensure that every rupee saved due to the GST reduction is transferred to consumers. He pointed out that under the new framework, GST on multiple categories has been lowered to as low as 5%, leading to considerable savings throughout the sector. This, he stated, will serve as a strong demand catalyst, as lower prices typically encourage increased consumption and accelerate industrial growth.

Goyal pressed the industry to commit to two pivotal promises to the Prime Minister—first, to pass on every rupee saved from the GST cuts to consumers, and second, to actively endorse Indian-made products. He stressed the importance of supporting products born from the hard work of Indians, cultivated in the Indian soil. He emphasized that when these products reach every part of the nation, they not only embody economic value but also signify national pride and self-reliance.

Goyal affirmed that it is irrelevant whether ownership belongs to an Indian entrepreneur or a foreign investor; what truly matters is that products are manufactured in India, creating jobs for Indian youth, providing opportunities for local communities, and contributing to the nation's growth trajectory. He added that every product made in India encapsulates the aspirations of 1.4 billion people and represents the nation's journey towards Viksit Bharat 2047.

Highlighting India's robust economic performance, he pointed out that GDP grew by 7.8% in the first quarter. Despite global disruptions and uncertainties, India retains its position as the fastest-growing large economy and, under the decisive guidance of Prime Minister Narendra Modi, will continue to thrive for the upcoming two decades.

He reiterated the government's ambition to elevate India's GDP from $4 trillion to $30 trillion by 2047, emphasizing that India is on the path to becoming a prosperous and developed nation.

Goyal mentioned that a fit and healthy India, significantly supported by the nutraceutical sector and nutritious food products, is essential for the country’s growth. He pointed out that this sector not only aids farmers and supports micro, small, and medium enterprises but also contributes to the healthcare of every Indian. He highlighted the considerable health benefits of turmeric, the advantages of ginger, and the significance of probiotics in providing young Indians with quality protein and nutrition.