SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation and Infrastructure
Institutions: Ministry of Commerce and Industry
The government’s Next-Generation GST reforms, effective 22 September 2025, have lowered costs across major consumption and production categories. Rates on over 375 items, including groceries, medicines, clothing, and stationery, have been reduced, while tractors now attract a 5 percent GST instead of 12–18 percent. Health and life insurance have been made fully exempt, and buyers of small cars may save up to ₹70,000. The simplified structure aims to improve compliance, cut transaction costs, and raise purchasing power.
At a meeting of the National Traders’ Welfare Board (NTWB), the Department for Promotion of Industry and Internal Trade (DPIIT) linked these measures to the goal of reviving local retail and manufacturing networks, especially small traders and rural enterprises. The reforms complement ongoing efforts to streamline procedures and integrate traders into formal value chains under DPIIT’s domestic trade strategy.
By rationalising indirect taxes, the reforms enhance affordability for consumers and liquidity for traders. They support India’s wider agenda of formalisation, local manufacturing growth, and ease of doing business across the domestic market.
What is the Department for Promotion of Industry and Internal Trade (DPIIT)? → DPIIT is the nodal department responsible for industrial policy, investment promotion, and domestic trade in India. It formulates and implements policies that improve the ease of doing business, support startup and innovation ecosystems, and enhance the competitiveness of manufacturing and internal trade. DPIIT also oversees frameworks such as Make in India, Startup India, PM Gati Shakti, and logistics and e-commerce policy coordination, acting as the key interface between central ministries, state governments, and industry stakeholders.
What is the National Traders’ Welfare Board (NTWB)? → A statutory advisory body under DPIIT, the NTWB provides feedback on trade reforms and welfare measures for small traders.
Relevant Question for Policy Stakeholders:
How can GST rationalisation be paired with digital compliance tools to ensure small traders fully capture the gains from tax reforms?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2176986