New Delhi: Industry associations and experts have expressed their approval of the government's introduction of GST 2.0, describing it as a step that will streamline the tax framework and lessen the financial load on consumers, ultimately stimulating economic growth. In an interview with ANI, representatives from various sectors impacted by the recent increase in tariffs from the US stated that these reforms will generate additional opportunities and enhance the industry.
The textile industry is experiencing relief. Mithileshwar Thakur, Secretary General of the Apparel Export Promotion Council (AEPC), remarked, "The series of GST reforms are bold, courageous, and groundbreaking... This is a positive development that will enhance demand, promote consumption, and revitalize the economy by removing certain slab rates and addressing long-standing GST challenges... The textile sector stands to gain from lower rates on products such as swing threads and yarns... The inversion issue within the MMF value chain has been addressed, which was long overdue."
Rajesh Rokde, Chairman of the All India Gem & Jewellery Domestic Council (GJC), stated, "A new reform has been introduced to incorporate alphanumeric digits in silver hallmarking, which has been implemented from September 1 by the Government of India, although it is voluntary... We express our gratitude to the Commerce Ministry and Union Minister Pralhad Joshi for promoting greater transparency."
Furthermore, Ashish Kothari, Director COA of the All India Gem & Jewellery Domestic Council (GJC), added, "PM Narendra Modi has fulfilled his promise. GST 2.0 signifies the advancement of the entire nation... This will also significantly contribute to the Viksit Bharat 2047 mission... Although there is no direct impact on the jewellery sector... We have submitted requests and representations to the GST council to lower the GST slab (on jewellery)." Regarding the US tariffs on India, he commented, "The Indian export sector will be impacted by this tariff conflict, but we will seek alternative business opportunities through government policies... Our exports continue to thrive in other countries."
Rajesh Menon, the Director General of the Society of Indian Automobile Manufacturers (SIAM), stated that the reduction in taxes on entry-level vehicles will have a direct positive impact on buyers. "GST 2.0 represents a significant reform initiative from the perspective of the automobile sector. We are profoundly thankful to the Finance Minister and the Government of India. This change means that entry-level vehicles will now be taxed at 18 percent, down from the previous base rate of 28 percent. Overall, consumers will see substantial benefits... In recent months, the government has implemented measures aimed at stimulating demand and enhancing consumption," he remarked.
Rajib S Sahoo, a Financial Expert and Chairman of the Indian Chamber of Commerce in Odisha, commented that the reforms are timely. "These changes have arrived at a pivotal moment when there are challenges in the international market and exports to America are facing difficulties... The reforms will enhance domestic consumption and industrial output due to rising demand, creating a cascading effect that will improve employment, economic output, productivity, and the country's GDP... This will alleviate the tax burden on the average citizen," he observed.
Sriram Viswanathan, Founding Managing Partner at Celesta Capital, conveyed his confidence in the government's actions. "I am fully confident that the government is making the right decisions... This is beneficial for the economy and the overall ecosystem," he stated.
International perspectives also reflected support. Richard Heald, Director of the UK India Business Council (UKIBC), remarked, "I believe the announcement is very encouraging... There is a simplification in the tax structure, as you mentioned, with two slabs... these are advantageous features for both India and for UK companies invested in India... I genuinely think this will further endorse the UK-India free trade agreement."
