Goyal urges industry to pass on GST rate cut benefits to consumers

New Delhi, Sep 4 (PTI) The industry must pass on to consumers the full benefits of the GST rate reductions, the "biggest ever reform" since India's independence, Union Minister Piyush Goyal said on Thursday.

Union Commerce and Industry minister said the GST reforms would boost demand in almost all sectors, supporting the economic growth of the country.

He urged the industry to encourage the sale of products made in India in a big way.

The minister addressed a joint event of the 2nd edition of India MedTech Expo 2025 and IPHEX 2025, which is the 11th international exhibition on pharma and healthcare. He also spoke at Bharat Nutraverse Expo 2025.

Talking about India's growth story, Goyal said the country in the next two years would become the third largest economy. India will grow from a USD 4 trillion economy to a USD 30 trillion economy by 2047.

"Yesterday's reform in indirect taxes in GST, coming on the back of several initiatives over the last 11 years, is transformational in nature, significantly impacting the pharma sector, significantly impacting so many sectors, right from the farmer until our MSMEs," he said.

Every stakeholder in the country, every consumer, stands to benefit," Goyal added.

Terming the GST reforms as "game-changing", the minister said the move would play an important role in the months and years to come in the journey of becoming a developed country by 2047.

Goyal asked the industry to "pass on all these benefits of GST to the consumers." Speaking on the sidelines, Goyal gave credit to the Prime Minister for the transformative and path-breaking reform in the goods and services tax (GST).

Prime Minister Narendra Modi always fulfils promises, he added.

"What we thought could be big has turned out to be the biggest ever reform that India has seen since independence. Besides many dimensions, consumers will benefit in a very big way with the reduction in taxes across the board, on almost all items of our day-to-day needs," Goyal said.

Besides the reduction in GST rates, the minister said the changes made in the process and procedure will contribute to the ease of doing business.

"These lower rates will support the growth of demand and industry. The scale of operation in the country will grow by leaps and bounds. Greater demand will lead to greater investment, greater jobs, and the virtuous cycle of growth will get a leg up and a big boost," he said.

This Diwali gift will contribute to ease of living, better quality of life for 1.4 billion citizens, Goyal said.

Asked about the Opposition's criticism that this reform should have been brought 8 years back, the senior BJP leader attacked the Congress party for spreading negativity at a time when India is the fastest growing economy in the world.

The minister pointed out that the opposition was in its current state because of this negativity only.

"Sadly, just like Rahul Gandhi, does not understand that the world's fastest growing large economy at 7.8 per cent growth in the first quarter is a matter of delight, joy and celebration," Goyal said.

"Rahul Gandhi calls India a dead economy, despite being the world's fastest-growing large economy. This is the negative thinking of a certain set of people, and I condemn this kind of negativity," he added.

Earlier, addressing the event, Goyal complimented the industry for making India the pharmacy of the world and earning the trust of the entire globe with high-quality medicines, high-quality drugs and pharmaceuticals, high quality health care.

He asked the industry to maintain that trust.

Goyal said the nutraceuticals industry is one of the biggest beneficiaries of the transformational changes in GST.

He noted that the industry can now aspire for a much greater volume of sales, creating a win-win situation for all.

Goyal further emphasised that businesses will gain from larger opportunities if the entire GST benefit is passed on to consumers.

Lower prices would naturally drive higher consumption and accelerate industry growth, he said.

The Minister urged the industry to make a strong twin commitment— first, to pass on every rupee of savings from the GST reduction to consumers, and second, to actively promote Indian products.

He stressed the need to support products made with the sweat and toil of hardworking Indians, products nurtured in the soil of India.

Goyal underlined that it does not matter whether the ownership lies with an Indian entrepreneur or a foreign investor, but what matters is that the products are manufactured in India, creating jobs for Indian youth, generating opportunities for local communities, and contributing to the nation’s growth story.

The minister said that a fit and healthy India, supported by the nutraceuticals sector in a big way and by healthy food products, is key to India’s growth.

He noted that the nutraceuticals sector is not only helping farmers and supporting micro, small and medium enterprises, but is also contributing to every Indian’s healthcare.

Goyal highlighted the immense contribution of turmeric to health, the powerful benefits of ginger, and the role of probiotics in providing young Indians with quality protein and nutrition. PTI MSS MJH MJH DR DR