Finance Minister Nirmala Sitharaman announced that tax benefits from recent GST rate reductions have been fully transferred to consumers, resulting in significant sales increases across vehicles and electronics sectors, during a pre-Diwali press conference alongside Union ministers Piyush Goyal and Ashwini Vaishnaw.
Consumer Benefits Confirmed
“The government was closely monitoring 54 daily use items. We found that in every one of them, the tax benefit due to the GST reforms has been passed to the end consumer. The Prime Minister’s Diwali gift has been delivered,” Sitharaman stated.
She added: “In some cases, businesses passed on higher-than-expected GST rate cuts to consumers.”
GST Reforms Context
Last month, the government overhauled the GST regime, announcing sharp reductions on food, daily essentials, and consumer durables including televisions and refrigerators.
The reforms took effect September 22, coinciding with Navratri’s start, amid global economic uncertainty triggered by US President Donald Trump’s tariff policies, including a 50 percent levy on India.
Vehicle Sales Surge
Sitharaman reported strong sales across vehicle segments: “Three-wheeler dispatches rose 5.5% year-on-year, while two-wheeler sales reached 21.6 lakh units. Passenger vehicle dispatches alone stood at 3.72 lakh in September. Hero Motors recorded its highest ever monthly sales in September.”
Electronics Boom
The finance minister highlighted that air conditioner sales doubled on September 22, the first day of GST reforms, while television sales increased 30-35 percent.
Additional Sector Data
Commerce Minister Piyush Goyal stated Maruti Suzuki sold 1.65 lakh cars during Navratri’s first eight days. “Mahindra’s sales increased by 60%, and Tata sold over 50,000 vehicles. The electronics sector has also broken all records,” he said.
Calling the GST overhaul “the biggest reform in post-Independence India,” Goyal noted: “Amid such a volatile global scenario, the pace of India’s growth is so strong that even the IMF had to revise its growth forecast to 6.6%.”
Future Projections
IT Minister Vaishnaw predicted additional electronic consumption worth ₹20 lakh crore this year: “There has been a 25% increase in the sale of electronics this year. Secondly, due to the GST reforms, food prices are decreasing. The rising demand for electronics is directly benefiting the manufacturing industry.”
The ministers emphasized the reforms’ economic impact during India’s crucial festive shopping season.
