GST rate cuts must be passed to consumers: Piyush Goyal
What's the story
Union Minister Piyush Goyal has called on industries to pass on the benefits of Goods and Services Tax (GST) rate cuts to consumers. He said this will boost domestic demand, create new business opportunities, and strengthen India's economy. Goyal made these remarks at an event organized by EEPC India. He emphasized that the simplification and reduction in GST rates would boost domestic demand and create more opportunities for small and large enterprises alike.
Economic forecast
India's economy to become 3rd largest in 2.5 years
Goyal said, "The GST rate cuts, along with simplification, will boost domestic demand. Small and large enterprises will gain more opportunities, jobs will be created, incomes will rise, and spending will increase." He added that this would create a virtuous cycle of growth that would propel India forward. The minister also predicted that India's economy would become the world's third-largest in two to 2.5 years and reach at least $30 trillion by 2047.
Economic progress
India recorded a 'world record' GDP growth of 7.8%
Goyal highlighted India's transformation from one of the "fragile five" economies to a top-five economy in the world under Prime Minister Narendra Modi's leadership. He noted that India has been the fastest-growing economy for four years and recently recorded a 7.8% GDP growth in a single quarter, which he called a "world record." The minister also stressed the importance of ensuring equitable benefits reach every citizen through GST cuts.
Self-reliance
Goyal urges industries to support Atmanirbhar Bharat initiative
Goyal urged industries to support the Atmanirbhar Bharat initiative and promote Swadeshi products. He said this would help reduce import dependence and contribute to financial security and national progress. The minister also stressed the importance of trade and MSMEs, calling them the backbone of India's economy. He highlighted that India's exports have grown from just $10 million in 1955 to a staggering $116 billion projected for 2024-25, reflecting massive growth in the engineering sector.