New GST reforms could boost India's GDP by 0.8%, says Hardeep Puri

Union Petroleum and Natural Gas Minister Hardeep Singh Puri on Monday said that Goods and Services Tax (GST) reforms have brought a wave of happiness and celebration among people and can boost the Gross Domestic Product (GDP) of the country by 0.8 per cent.

The new GST reforms have come into force from today. The minister said that the country's path towards a Viksit Bharat goes through self-reliance.

"Apart from Navratri, the budget utsav has begun. There is a wave of happiness and celebration among people wherever you see... GST rates have been reduced, which will benefit all sections of society. But we are celebrating something else. These reforms can boost the GDP by 0.8%... Our path towards a Viksit Bharat goes through self-reliance. It has been welcomed by all sections of the society," Puri told ANI.

He said all sections, particularly lower middle class, economically weaker sections will benefit because GST rates on various consumption items have been reduced.

Prime Minister Narendra Modi, who addressed the nation via video conferencing, on Sunday, extended heartfelt greetings to all citizens on the commencement of Navratri, the festival of worshipping Shakti. 

He remarked that from the very first day of Navratri, the nation is taking a significant step forward in the Aatmanirbhar Bharat campaign.

The Prime Minister said that implementation of Next Generation GST reforms marks the beginning of a GST Bachat Utsav(Savings Festival) across India.

He emphasised that this festival will enhance savings and make it easier for people to purchase their preferred items.

PM Modi noted that the benefits of this savings festival will reach the poor, middle class, neo middle class, youth, farmers, women, shopkeepers, traders, and entrepreneurs alike. 

He remarked that in this festive season, every household will experience increased happiness and sweetness. Extending his congratulations, the Prime Minister conveyed best wishes to crores of families across the country for the Next Generation GST reforms and the GST Savings Festival. He underscored that these reforms will accelerate India's growth story, simplify business operations, make investments more attractive, and ensure that every state becomes an equal partner in the race for development.

This new framework is expected to ease compliance, reduce consumer prices, boost manufacturing, and support a wide range of industries, from agriculture to automobiles and from FMCG to renewable energy, and is intended to lower the cost of living, strengthen MSMEs, widen the tax base, and drive inclusive growth.