Major Ministers Announce GST ‘Bachat Utsav’ Success and Economic Gains

The event, themed “GST Bachat Utsav”, celebrated the government’s successful rollout of the most comprehensive set of GST simplifications and rate reductions since the tax’s inception in 2017.

 

In a landmark joint press conference held in New Delhi, Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman, Union Minister for Commerce and Industry Shri Piyush Goyal, and Union Minister for Railways, Information & Broadcasting, and Electronics & IT Shri Ashwini Vaishnaw announced that the Next-Gen GST Reforms — launched on September 22, 2025, just ahead of the festive season — have yielded remarkable results across consumption, manufacturing, and investment sectors.

The event, themed “GST Bachat Utsav”, celebrated the government’s successful rollout of the most comprehensive set of GST simplifications and rate reductions since the tax’s inception in 2017. The ministers described the reform as a turning point for India’s indirect tax framework and a catalyst for renewed economic dynamism.

---

Simplified GST: Fewer Slabs, Greater Savings

In her opening remarks, Finance Minister Nirmala Sitharaman highlighted that the Next-Gen GST Reforms had been implemented well ahead of schedule, fulfilling the Prime Minister’s Independence Day pledge to introduce them before Diwali.

“The Prime Minister had announced from the Red Fort that Next-Gen GST reforms would be rolled out before Diwali. We have not only delivered on that promise but implemented them at the very start of Navratri,” she said.

The reforms feature a reduction in tax slabs from four to two, alongside simplification of procedures, resolution of long-pending classification issues, and rationalization of rates to make products more affordable for consumers and businesses alike.

“This is not a correction — it’s a conscious decision to strengthen the GST structure, simplify compliance, and pass on the benefits to the common people,” Smt. Sitharaman emphasized.

She further revealed that the Department of Revenue has been closely monitoring 54 essential products to ensure that the benefits of revised tax rates are reaching end consumers. “The Next-Gen GST benefits have been fully passed on across all 54 items,” she confirmed.

---

₹2.5 Lakh Crore in Tax Relief Fuels Economic Optimism

Commerce and Industry Minister Piyush Goyal lauded the reform as one of the biggest economic decisions since independence, noting that the combination of direct and indirect tax reliefs worth ₹2.5 lakh crore has created a powerful multiplier effect across the economy.

“From small traders to large industries, and from urban consumers to rural households — everyone is feeling the positive impact of the GST Bachat Utsav,” Shri Goyal said.

He credited the Prime Minister’s vision and Finance Minister’s steady stewardship for implementing sustained tax reforms that not only make compliance easier but also enhance consumer purchasing power. “This year’s Navratri has become special for every Indian household,” he remarked.

Shri Goyal also connected these measures with the broader tax reform journey, recalling the income tax reliefs announced on February 1, 2025, and the comprehensive GST revisions announced on September 3, 2025, which he described as “a coordinated strategy to boost disposable income and encourage consumption-led growth.”

---

Economic Growth Driven by Strong Demand and Investment

Highlighting the cascading benefits of the reforms, Shri Goyal stated that the Indian economy is witnessing simultaneous growth on both the demand and supply sides. Affordable infrastructure materials, reduced GST rates on essential goods, and rising consumer sentiment have created a robust ecosystem for industrial expansion.

“India is not just the fastest-growing large economy — it is also the most resilient, driven by confidence, stability, and reform-oriented governance,” he said.

---

Electronics and Technology Sectors Register Record Growth

Railways and IT Minister Ashwini Vaishnaw underscored the transformative impact of GST reforms on India’s manufacturing and electronics sectors. He shared that during the Navratri and festive season, India witnessed a 20–25% surge in electronics sales compared to last year, reflecting unprecedented consumer enthusiasm.

“All major retail chains have reported record demand for home appliances, smartphones, and electronic goods. From televisions to air conditioners, consumers are upgrading their lifestyles — a strong indicator of growing purchasing power,” he said.

Notably, 85-inch televisions sold out nationwide, marking an increase in luxury consumer spending. The Minister said that food inflation has shown a deflationary trend of about 2% for four months in a row, easing household budgets and enabling sustained consumption growth.

---

Manufacturing Boom and Semiconductor Milestone

The surge in consumer demand has directly translated into a double-digit rise in India’s electronics manufacturing output, generating employment for over 25 lakh people nationwide.

“India has now surpassed its neighbouring country in smartphone exports to the United States,” Shri Vaishnaw revealed. “A major global company now produces 20% of its total output in India — a clear reflection of investor trust and India’s rise as a global manufacturing hub.”

He also announced a major leap in India’s semiconductor mission, with two new chip manufacturing facilities — CG Semi and Kaynes — beginning production. “With these plants operational, India has officially entered the next phase of semiconductor self-reliance,” he declared.

The development aligns with Prime Minister Modi’s vision of a technologically advanced and self-reliant Bharat, ensuring that India plays a pivotal role in the global technology supply chain.

---

Data Points Highlight the Reform’s Impact

Backing his claims with data, Shri Vaishnaw explained how GST reforms have strengthened the consumption-investment nexus within the economy.

• India’s GDP in 2024–25 stood at ₹335 lakh crore, with ₹202 lakh crore from consumption and ₹98 lakh crore from investment.

• Post-GST reform, consumption has already risen by 10%, adding approximately ₹20 lakh crore in spending.

• This rise in demand is expected to trigger a proportional increase in investments, creating a virtuous cycle of growth and reinforcing India’s macroeconomic stability.

---

GST Reforms: A Vision for Inclusive Prosperity

Collectively, the ministers emphasized that the Next-Gen GST Reforms are part of a larger economic vision aimed at inclusive prosperity and sustainable growth. By reducing tax burdens, simplifying compliance, and encouraging consumption, the reforms ensure that the benefits of India’s economic expansion reach every household.

Smt. Nirmala Sitharaman concluded the conference by reaffirming that the GST Council and Central Government will continue to work closely to ensure transparency, accountability, and citizen-centric governance.

“Our reforms are guided by one principle — Sabka Saath, Sabka Vikas, Sabka Vishwas. The GST Bachat Utsav is not just a celebration of tax relief, but a reflection of India’s confidence, cooperation, and collective progress,” she said.