'Big Diwali gift': How Indian biz leaders reacted to GST Council's rate cuts
From Anand Mahindra to Radhika Gupta, industry voices hail dual-rate GST reform as a boost for demand, affordability, and inclusive growth.
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India's corporate leaders and industry voices have lauded the GST Council's landmark decision to move to a simplified two-rate structure of 5% and 18% from September 22, calling it a reform that will ease living costs, stimulate demand, and accelerate economic growth.
Mahindra Group chairman Anand Mahindra echoed similar optimism, noting that faster reforms remain the "surest way to unleash consumption and investment." Quoting Swami Vivekananda, he urged, "Arise, awake, and stop not till the goal is reached. So, more reforms, please..."
Industrialist Harsh Goenka called it a "Big Diwali gift" for citizens, emphasizing benefits like cheaper groceries, relief in healthcare, affordable education, and farming support. "This is a step toward a 'Next-gen GST' with dual benefits of easing living and boosting the economy," he posted.
Radhika Gupta, MD and CEO of Edelweiss Asset Management, described it as an "extremely progressive step at a very critical time that should help boost both demand and sentiment." Sharing her views on X, she added: "When the world pushes us into a corner, we push ourselves to fight back harder."
The applause follows Union finance minister Nirmala Sitharaman's announcement after the 56th GST Council meeting on Wednesday, which merged the existing 12% and 28% slabs. The sweeping cuts apply to essentials, automobiles, electronic appliances, and agricultural inputs.
Corporate India hailed the reforms as a milestone:
- Rajesh Jejurikar, Executive Director and CEO, Auto and Farm Sector, Mahindra & Mahindra, said the rationalisation will have a "far-reaching positive impact" on automotive and farming sectors while sustaining the 5% GST on EVs, a "critical enabler of India's clean mobility vision."
- Sanjiv Goenka, chairman of RP-Sanjiv Goenka Group, called it a "citizen-first" approach aligned with Prime Minister Narendra Modi's vision for inclusive growth.
- Arnab Banerjee, MD & CEO of CEAT, welcomed the reduction in tyre GST rates from 28% to 18%, and to 5% for tractor tyres and tubes, calling it "a progressive step that will support rural mobility and reduce input costs for farmers."
- Zoho's Sridhar Vembu underlined the balance between boosting demand and encouraging local production. "Cutting taxes to stimulate domestic demand, and encouraging investment in domestic production... exactly the right mix," he wrote, crediting the government's prudence for enabling such reforms.
