Piyush Goyal in Exclusive Interview: GST reforms “Most Transformative in 60 Years”

Union Commerce and Industry Minister Piyush Goyal has described the government’s latest Goods and Services Tax (GST) reforms as the most significant economic transformation India has seen in decades, calling it a “bold decision” by Prime Minister Narendra Modi that will accelerate growth and prosperity.

In an exclusive interaction with Rahul Joshi, Managing Director and Group Editor of Network18, Goyal said the reforms reflect the Prime Minister’s vision of combining ease of doing business with ease of living, in order to expand opportunities and bring prosperity to all sections of society.

“For Prime Minister Modi, ease of doing business is the pathway to a developed economy. Ease of living is a commitment to the people of India for wider prosperity,” Goyal remarked.

Addressing concerns around revenue implications, the minister stressed that the government’s monthly GST collections are already averaging close to ₹2 lakh crore. He expressed confidence that the reforms would further enhance tax buoyancy. “A boost in demand will push this up. I 100% expect revenue buoyancy to improve after GST cuts,” he said.

The revised GST structure includes reductions on key categories such as cement, farm equipment, two-wheelers, small cars, and daily essentials. According to Goyal, this will lead to lower costs for consumers across sectors. “Almost every product of daily use, food products, will see a transformational reduction in prices,” he said, adding that industry players have assured the government that the tax benefits will be passed on to consumers.

Goyal underscored the wider implications of cheaper cement and housing materials, predicting that it would significantly improve middle-class access to affordable housing. Similarly, the reduction in GST on farm equipment is expected to modernise agriculture and boost farm productivity.

The minister explained that the reforms align with a growth cycle where lower taxes stimulate consumption, which then drives investment and job creation. “When there is demand, there will be impressive investment to meet demand. More investment will mean more jobs across manufacturing and services,” he said.

Reflecting on the Prime Minister’s economic stewardship, Goyal credited Modi with lifting India from what he called a “broken, fragile-5 economy” to one of the top five economies globally. “He has brick-by-brick, step-by-step brought reforms, made life better across strata,” he said.

He also pointed to India’s resilience in navigating the Covid-19 pandemic and maintaining its position as the fastest-growing large economy for four consecutive years. According to him, the groundwork has been laid for India’s GDP to expand from $4 trillion to $30 trillion in the long term.

While acknowledging recent market softness, Goyal said indices have largely remained stable. He expressed optimism that the impact of GST reforms would provide a substantial push to the economy. “I’m confident the GST reforms’ impact will give a big leg-up to the economy, spur growth, and power Indian investments. India is poised for a very bright future,” he added.

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