- Reforms had been planned for over 18 months, not triggered by US tariff hikes
- A concrete GST reform package was ready to present to PM Modi by May this year
- Government is assessing losses in US-exposed sectors and considering support schemes
Finance Minister Nirmala Sitharaman clarified that India's latest round of GST reforms had been in the works for over 18 months and were not prompted by US President Donald Trump's tariff hikes, while speaking at the NDTV Profit GST Conclave on Tuesday.
She explained that the reform package took shape gradually, with a concrete set of measures ready to be presented to Prime Minister Narendra Modi by May this year.
"These reforms were in the making for the last one-and-a-half years," she said, adding that, "It was in May that I realised I had a worthy pack to present to the PM."
According to her, the reforms are part of a planned exercise rather than a reaction to global shocks. While acknowledging that a 50% tariff from the US is significant, she pointed out that the impact is concentrated among exporters heavily reliant on the American market.
The government, she said, is assessing the scale of losses in affected sectors and is considering support schemes based on industry feedback.
"We need to have an assessment of the industry that is exposed to the US. Some inputs are coming and the government is working on a solution. From our side, we are keeping all doors open."
She said diplomatic teams are engaging with the US, while trade negotiations are still underway. At the same time, the finance minister noted that India is working to cushion any spillover impact on FDI, which could be influenced by the tariff regime.
She also linked the reform push to the post-election political environment, highlighting the BJP's efforts to consolidate its NDA alliance after returning to power.
On the market front, the finance minister said global uncertainties continue to weigh on investor sentiment, but insisted that reforms should not be judged by immediate market reactions.
"I don't think I am worried about the immediate reaction from the markets," she said.
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