'Not Worried' About Market's Immediate Reaction To GST Reforms, Says Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said she is not concerned about the short-term reaction of markets to India's sweeping GST reforms, emphasising that global uncertainty is dominating investor sentiment at present.

"Markets always react to so many different factors… global uncertainty is definitely dominating their thoughts," the FM noted at the NDTV Profit GST Conclave. While she tracks the market, she said the success of reforms cannot be measured by day-to-day movements. "I don't think I am worried about the immediate reaction from the markets," she added.

Sitharaman had earlier also clarified that the reforms were not triggered by US President Donald Trump's recent tariff hikes but had been in the making for over 18 months. A full package was ready to be presented to Prime Minister Narendra Modi by May this year.

She acknowledged that a 50% tariff from the US is significant but argued the impact is largely confined to exporters with high exposure to the American market. The government, she said, is assessing losses and designing support schemes accordingly, while diplomatic engagement with Washington continues.

While thanking ministers from multiple parties and states who acceded to the reforms, she noted that the GST Council meeting was not at all acrimonious. The council is accustomed to discussion of this nature, she said, but clarified that the decision to bring down the rates saw no opposition from anyone.

The difference was on the path of revenue falling, the finance minister said. On that, she said that Centre and states are together, with both seeing the impact. As such, efficiency will have to increase to offset the fall, she added.