Industry leaders and experts have said the newly announced GST 2.0 reforms will provide much-needed support to sectors impacted by the recent US tariff hikes, easing costs for consumers and boosting domestic demand.
As per news agency ANI, stakeholders from textiles, automobiles, jewellery, exports and finance believe the rationalisation will help offset challenges posed by global trade pressures.
Mithileshwar Thakur, secretary general of the Apparel Export Promotion Council (AEPC), said the changes are “bold, brave and pathbreaking” and will “kickstart the economy by eliminating slab rates and addressing long-standing GST issues.”
He stressed that the textile sector, already under stress from tariff wars, will benefit from reduced rates on swing threads and yarns, along with the resolution of the inversion issue in the MMF value chain.
Ashish Kothari of the Gem & Jewellery Council was quoted by ANI as saying that, “PM Narendra Modi did what he promised. GST 2.0 represents the development of the entire country… This will also contribute majorly to the Viksit Bharat 2047 mission.”
On US tariffs, he acknowledged Indian exports will face pressure but added, “We will find some alternate business through the government policies.”
Automobile manufacturers also see benefits. SIAM director general Rajesh Menon said reducing GST on entry-level vehicles from 28 per cent to 18 per cent “will directly benefit buyers” and boost consumption.
Financial expert Rajib S Sahoo noted, “This has come at a crucial time when there is a threat in the international market and export to America is under challenge. The reforms will boost domestic consumption, industrial output, and GDP, reducing the tax burden on the common man.”
The 56th GST Council meeting on Wednesday approved the rationalisation, merging rates into two slabs of 5 per cent and 18 per cent.
NSE chief Ashishkumar Chauhan described it as a “landmark step forward,” while Kotak AMC’s Nilesh Shah said it would “lower inflation, increase growth and partially offset adverse effects of tariffs.”
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Read MoreThe TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
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