GST benefits must be passed on to consumers to boost India's economy, Piyush Goyal tells industry players

Union Minister of Commerce Piyush Goyal asked industries across India on Monday to pass the full benefits of the upcoming GST rate cuts to consumer so that the demand of domestic products get increased and in turn build the foundation of the Indian economy.

Finance Minister Nirmala Sitharaman last week announced a major rejig in India's GST, with the GST slabs being reduced to two — 5% and 18%. Most consumer goods including food, apparel, electronics and home appliances are likely to get cheaper with the GST rate rationalisation.

“The GST rate cuts, along with simplification, will boost domestic demand, small and large enterprises will get access to more opportunities, new avenues for employment will be generated, earnings will rise, which will lead to higher spending,” Piyush Goyal at an EEPC India event in New Delhi.

He said that this way, India would enter a virtuous cycle of growth to take the country ahead.

No power across the world will be able to stop India's emergence as a global superpower, Goyal said in a veiled dig at the 50 per cent US tariffs on India imposed by President Donald Trump for purchasing Russian oil.

The Union Minister highlighted the importance of equitable economic benefits and urged industries to pass on GST benefits to consumer so that growth reaches every citizen to empower India's economy.

When India works together as a united family, supporting each other across sectors, inclusive growth will naturally follow, he said.

India to become $30 trillion economy: Goyal

Piyush Goyal said that India's current $4 trillion economy is poised to become the third largest globally in the next 2-2.5 years. By 2047, it will become an economy of at least $30 trillion, he said.

He expressed confidence that the country can become a global role model for sustainable and inclusive development.

The minister said with GST rate cuts and simplification, Prime Minister Narendra Modi has given a boost to domestic demand. He noted that new opportunities for employees and increases in income will follow. He further said when infrastructure spending and consumer demand grow on strong base of the economic system, no power in the world can stop India from becoming a world power.