...cushion economy from US tariff headwinds: Industry

NEW DELHI: The GST rate rationalisation is set to kick off a cycle of growth for India’s economy, driven by a major consumption boost, and provide much-needed cushion against the headwinds emanating from “lopsided” tariff regimes being pushed by the US, industry leaders said on Thursday.

The GST Council on Wednesday cleared sweeping changes to the indirect tax regime, approving an overhaul of rates by limiting slabs to 5 per cent and 18 per cent effective from September 22, the first day of Navaratri.

Ashok P Hinduja, Chairman, Hinduja Group of Companies (India), said the GST rate cuts announced across the board augur well for the economy as they will support India’s macroeconomic stability by spurring demand at the grassroots level.

“This move was a much-needed consumption booster to cushion the global economic headwinds resulting from the lopsided tariff regimes being pushed by the US. It will have a cascading positive effect on several adjacent sectors, both upstream and downstream,” he stated. Mahindra Group Chairman Anand Mahindra took to social media platform X and batted for more such reforms to spur consumption and drive invest.

“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. But let’s remember the famous exhortation of Swami Vivekananda: “Arise, awake, and stop not till the goal is reached.” So, more reforms, please…,” Mahindra said in the post.