Full benefits of GST rate cuts must be passed on to consumers, says Piyush Goyal

NEW DELHI: Union Minister Piyush Goyal on Monday asked the industry to pass on the full benefit of GST rate cuts to consumers, thereby increasing the demand of domestic products and strengthen the foundation of India's economy.

"The GST rate cuts, along with simplification, will boost domestic demand, small and large enterprises will get access to more opportunities, new avenues for employment will be generated, earnings will rise, which will lead to higher spending," Goyal said, adding that this will create a virtuous cycle of growth to take the country ahead.

No power in the world will be able to stop India's emergence as a global superpower, the commerce and industry minister said at an EEPC India event here.

Goyal stated the importance of equitable economic benefits, and highlighted that advantages of goods and services (GST) rate cuts must be fully passed on to consumers, ensuring that growth reaches every citizen and strengthens the foundation of India's economy.

The minister said when India works together as a united family, supporting each other across sectors, inclusive growth will naturally follow. He expressed confidence that the country can become a global role model for sustainable and inclusive development.

The minister expressed confidence that India's economy, which currently has a size of about USD 4 trillion, will become the third largest globally in the next 2-2.5 years and by 2047, it will become an economy of at least USD 30 trillion.

The minister said with GST rate cuts and simplification, Prime Minister Narendra Modi has given a boost to domestic demand. He noted that new opportunities for employees and increases in income will follow. He further said when infrastructure spending and consumer demand grow on strong base of the economic system, no power in the world can stop India from becoming a world power.

Goyal said under the leadership of PM Narendra Modi, India has transformed from a fragile five economies to one of the top five economies. He noted that India has been the fastest-growing economy for the last four years. In the last quarter, the country achieved 7.8 per cent GDP growth, which he described as a world record.

"Therefore, we must all accept the call to action of Atmanirbhar Bharat which is in front of us," he said.

"No matter how much instability arises in the global situation... India's confidence is so strong today we do not get scared or bow to any challenge," asserted the minister.

He added that the country has the strength to overcome any crisis, emphasising that businesses should focus on Swadeshi products, as this will not only help India's growth but also strengthen the country's financial security.

He said the country's 1.4 billion people, businesses and trade should focus on Made in India products. Businesses that are import dependent can look into products that can be procured and made in India, he suggested.

Goyal highlighted that India's strength relies on trade and the MSME sector, which form the backbone of the country's businesses.

Referring to EEPC's journey, he pointed out that in 1955, exports were at USD 10 million, while today they stand at USD 116 billion. With time, he said, the engineering sector will grow further with bigger goals and greater strength.

The minister said he has full confidence that India, with the motto of "Zero Defect, Zero Effect," will grow bigger. He underlined the need to ensure that good quality products are made in India and sold across the world.

He added that the world today considers India a trusted partner, and it is important to maintain that status.

He also stated that India is a nation conscious of sustainability. As a responsible global citizen, India is mindful of Mother Nature, and with its NDC commitments under COP21 in Paris, India has ranked in the top three for consecutive years in global sustainability efforts.