GST Cut Seen as Diwali Gift for Consumers, Experts Say
The Central government’s decision to reduce GST rates has been described by economists as a major Diwali gift for citizens. They believe the move will ease prices, increase demand during the festive season, and help balance the impact of recent US tariffs on Indian exports.
Economist Pankaj Jaiswal called the reform “a bumper Diwali gift.” He explained that lower GST will reduce inflation and encourage people to spend more, giving a much-needed boost to domestic consumption. He also noted that while US tariffs created concerns about falling exports and production, this change will keep those risks under control by putting more money in people’s hands.
Chartered Accountant Praveen Sahu said the simplified GST structure, with two slabs of 5 percent and 18 percent, will directly help the public. Nearly 80 percent of goods now fall under the 5 percent rate, making essentials more affordable. According to him, this will increase purchasing power and stimulate the economy.
Economist Rajiv Sahu called the move the most important tax reform since GST was introduced in 2017. He said it will give consumers immediate relief, boost spending, support industries, and strengthen the economy overall.
Business groups have also welcomed the decision. Aditya Manya Jain, General Secretary of the Chamber of Commerce, said lowering taxes on daily-use products benefits not only consumers but also traders and investors. He added that the step will keep growth momentum steady while addressing challenges from international trade tariffs.
Economist Ajay Rotti highlighted the removal of GST on health insurance, which dropped from 18 percent to zero. He described it as a historic step that will reduce costs for families and help small and medium businesses. Cheaper essential goods, he said, will drive higher consumption and further strengthen the economy.
With the festive season underway, experts agree that this reform comes at the right time, offering relief to households and energy to India’s economic growth.
