54 Products See Price Benefits as GST Cuts Reach Consumers

Finance Minister Nirmala Sitharaman on Saturday stated that the benefits of recent GST rate cuts have been fully passed on to consumers across multiple categories. Speaking at a joint press conference in New Delhi, the Minister said the government has been closely monitoring 54 products, ranging from shampoos and electronics to tractors, since September 22, to assess the impact of the GST revisions.

Sitharaman confirmed that the GST reductions have benefited all 54 products, including essentials like milk and cement as well as passenger cars and electronics. She highlighted that the rate cuts have not only lowered prices but also encouraged higher consumer purchases, amplifying the benefits of the GST cuts themselves.

Consumption Boost

Commerce and Industry Minister Piyush Goyal said that the GST revisions have instilled confidence in the industry, the economy, and the public, noting that lower taxes on common goods have boosted consumption growth.

Union Minister Ashwini Vaishnaw added that India has seen significant consumption growth this year, with consumer spending increasing by Rs 20 lakh crore and overall consumption rising by 10 percent. Vaishnaw also pointed out that food inflation has fallen by 2 percent, reflecting a positive impact on everyday living costs.

Electronics Sales Surge

Vaishnaw highlighted that GST cuts have spurred unprecedented growth in electronics sales, particularly during the Navratri season, with sales increasing by 20-25 percent year-on-year. The Minister further noted that electronics manufacturing in India has achieved double-digit growth, and for the first time, India has surpassed China in exporting mobile phones to the United States.

The government’s monitoring and proactive measures, Sitharaman emphasized, ensure that the GST rate reductions deliver maximum benefits to end consumers, while simultaneously stimulating industrial production and overall economic activity.

Also Read: GST Rate Cuts to Benefit 10 Crore Dairy Farmers, Says Cooperation Ministry