Finance Ministry Reports Early Outcomes of GST Reforms Boosting Consumption and Jobs
SDG 8: Decent Work & Economic Growth | SDG 9: Industry, Innovation & Infrastructure
Institutions: Ministry of Finance | Ministry of Electronics & Information Technology
On 18 October 2025, the Ministry of Finance, with the GST Council and Ministry of Electronics & IT, released an update on the initial outcomes of the Next-Gen GST Reforms, which came into effect on 22 September 2025. The reforms reduced GST slabs from four to two and lowered rates on essentials, health insurance, and household goods. Together with direct-tax adjustments, they deliver around βΉ 2.5 lakh crore in combined relief aimed at improving affordability and stimulating consumption.
The Finance Minister reported strong festive-season demand: electronics and appliance sales rose 20β25 % year-on-year, with premium televisions selling out during Navratri. Monitoring of 54 products is underway to verify that rate cuts are passed on to consumers. The government cites the creation of 25 lakh jobs in electronics manufacturing, linked to investments in semiconductor units such as CG Semi and Kaynes Technology, and notes continued food-price deflation (~2 %) over four months, helping sustain household purchasing power.
Advances Make in India and the National Manufacturing Policy by coupling fiscal rationalisation with consumer demand. Reinforces industrial growth and federal tax cooperation through a streamlined, compliance-friendly GST framework.
Relevant Question for Policy Stakeholders:
Can sustained consumption gains from GST rationalisation balance short-term revenue loss, and what mechanisms best ensure fair pass-through to consumers?
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