GST Rate Cut Impact: Expect GST Rate Cut To Boost Consumption By 10% This Year, Says Ashwini Vaishnaw

The government expects the recent Goods and Services Tax (GST) rate cuts to boost total consumption by around 10% this year, adding nearly Rs 20 lakh crore to India’s economy, Electronics and IT Minister Ashwini Vaishnaw said on Saturday.

India’s total consumption for the current fiscal year stands at about Rs 202 lakh crore. The minister said early data from retailers indicates a significant rise in sales since the GST rate cuts. “There were 20–25% higher sales compared to last Navaratri. Categories like 85-inch televisions were completely sold out,” Vaishnaw said.

“The increase in demand for electronics goods is directly impacting electronics manufacturing. Electronics manufacturing is now growing at a double-digit CAGR. It is very likely that the consumption will increase more than 10% this year, which means there is a high possibility of Rs 20 lakh crore extra consumption compared to last year,” Vaishnaw said at a joint press conference with Finance Minister Nirmala Sitharaman and Commerce and Industry Minister Piyush Goyal on the savings generated through GST reforms that took effect on Sept. 22, 2025.

He said retail data shows a 20–25% rise in sales compared to last Navaratri, with several product categories, such as 85-inch televisions, selling out completely.

(With inputs from PTI.)