GST Rate Cuts Propel India's Economy: A Stable Path Forward

The Indian finance ministry reports that reduced GST rates have significantly boosted consumption, with inflation at a record low. Economists forecast favorable GDP growth, despite global uncertainties. Labour reforms aim to modernize regulations, align with contemporary work environments, and ensure economic resilience. Structural reforms are urged for job creation.

The rationalisation of GST rates has catalysed a notable uplift in consumption, significantly contributing to India's economic stability. This observation forms a key highlight of the finance ministry's recent report.

According to the October Monthly Economic Review, easing inflation and reform-driven increased disposable incomes have brightened the near-term consumption prospects. Retail inflation hit a historic low of 0.25% in October 2025, propelled by lower GST rates and decreased food inflation.

Moreover, structural reforms, including four new Labour Codes, seek to overhaul the labour landscape, supporting a future-ready workforce towards 'Viksit Bharat @ 2047'. Despite global uncertainties, a stable domestic demand and policy support maintain the economy on firm ground.

(With inputs from agencies.)