Business leaders laud GST overhaul, say move likely to boost economy

Business leaders have lauded the Centre’s approval of a simplified Goods and Services Tax (GST) structure, calling it a transformative step for India’s economy. The GST Council has reduced rates on nearly 400 items, consolidating taxes into two main slabs of 5% and 18%, a reform the government has termed “Next-Gen GST.”

Taking to social media platform X, Anand Mahindra said that the GST reforms will drive consumption and investment, which in turn will strengthen the economy and India’s global standing.

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“We have now joined the battle…More and faster reforms are the surest way to unleash consumption and investment.Those, in turn, will expand the economy and amplify India’s voice in the world,” he said.

He, however, called for more reforms but didn’t clarify which particular sector he was referring to.

Quoting Swami Vivekananda, he urged: “Arise, awake, and stop not till the goal is reached.” So, more reforms, please.”

Harsh Goenka, Chairman of RPG Enterprises, echoed the sentiment, noting that the new GST regime would enhance ease of living and accelerate economic growth.

Radhika Gupta, MD & CEO of Edelweiss Mutual Fund, called the decision “extremely progressive” and well-timed, saying it would “help boost both demand and sentiment.”

In an apparent reference to steep US tariffs under President Donald Trump, she added: “When the world pushes us into a corner, we push ourselves to fight back harder.”

The reforms, which take effect September 22, will reduce taxes on a wide range of daily-use goods and consumer electronics, including soaps, televisions, air conditioners, and small cars. Health and life insurance, along with certain educational products, will also be exempt from GST.

Markets reacted positively to the announcement. The Sensex jumped over 650 points in opening trade, while the Nifty surged past 24,900, led by gains in auto and insurance stocks.