Delhi, 18 October (H.S.): Union Finance Minister Nirmala Sitharaman on Saturday declared the recently implemented GST 2.0 reforms a resounding success, stating they have been positively embraced by the public. Speaking at a joint press conference on the auspicious occasion of Dhanteras, Sitharaman, alongside Commerce Minister Piyush Goyal and IT Minister Ashwini Vaishnaw, detailed the significant economic upswing since the new tax regime, dubbed 'GST Bachat Utsav,' launched on September 22.
The ministers reported that the reforms have directly passed on benefits worth ₹2.5 lakh crore to consumers, fueling a nationwide consumption surge and record-breaking festive sales. The tax benefits from GST reforms on 54 essential daily-use items have been successfully transferred to the end consumer, Sitharaman stated, confirming the government's close monitoring of the price reductions.
The automobile sector has been a primary beneficiary, with robust sales figures underscoring the positive impact. According to the Finance Minister, three-wheeler sales climbed 5.5% year-on-year to 84,077 units, while two-wheeler sales touched 2.16 million units. The passenger vehicle segment alone recorded sales of 372,000 units in September, largely driven by purchases in the last nine days of the month.
Sitharaman assured that this demand is sustainable, noting, These cuts mean more collection, creating better fiscal space to give back. Demand will persist even after the festive season.Highlighting the broader consumption trend, IT Minister Ashwini Vaishnaw projected that the GST cuts could spur a consumption increase of over 10% year-on-year.
Last year, our GDP was ₹335 lakh crore, with consumption accounting for ₹202 lakh crore. Due to these reforms, we anticipate an additional consumption of nearly ₹20 lakh crore this year, Vaishnaw said. He also pointed to record electronics sales this Navratri, which were 20-25% higher than the previous year, with high-demand items like 85-inch televisions selling out completely.
Vaishnaw also celebrated a major milestone for the 'Make in India' initiative, revealing that India has now surpassed its neighboring country in smartphone exports to the United States. This is a significant achievement for our nation. Some major companies are now conducting nearly 20% of their production in India, he added.
Commerce Minister Piyush Goyal emphasized the multiplier effect of the tax cuts on the economy and cited specific corporate successes.
Maruti Suzuki sold 1.65 lakh vehicles in just eight days of Navratri, and Mahindra's sales grew by up to 60%, he reported. Goyal expressed confidence in the prevailing positive sentiment, attributing it to a renewed spirit of 'Swadeshi' (self-reliance) under Prime Minister Narendra Modi's leadership.
Despite global challenges, India is moving forward at a fast pace. The IMF has also raised India's growth forecast to 6.6%, following our historic 7.8% growth in the first quarter, he concluded.
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Hindusthan Samachar / Jun Sarkar