NEW DELHI<\/strong> \u2013 Prime Minister Narendra Modi has made a public appeal to the citizens of India to use ‘Swadeshi’ (indigenous) products, announcing that the prices of “99 percent of items will come down.” The Prime Minister stated that this move is a part of the ‘Make in India’ initiative to promote domestically manufactured goods and that the newly introduced “Next-Gen GST Reforms” will provide a significant boost to these efforts.
Under the new GST reforms, the tax rates on a wide range of goods have been reduced from 12 percent to 5 percent.<\/p>\n\n\n\n The government anticipates that this will lead to a substantial decrease in the overall cost of goods and provide relief to consumers and businesses alike.
List of Products with Reduced Prices:
Daily Use Items: The price of staples such as spice powders, jaggery, dry fruits, vegetables, dairy products, papad, rusks, noodles, and beverages will decrease.
Home Appliances: The prices of household appliances, including TVs, washing machines, refrigerators, and air conditioners, will also be lowered.<\/p>\n\n\n\n
Healthcare Products: A lower GST rate will apply to healthcare items like medicines, Ayurvedic products, glucometers, thermometers, and contact lenses.
Travel-Related Services: The cost of travel-related services, including air tickets, hotel rooms, and rail travel, will also be reduced.<\/p>\n\n\n\n
GST Rate Cuts Set to Stimulate India’s Automobile Market.<\/strong><\/p>\n\n\n\nThe Indian automobile market is poised for a significant revival following the government’s decision to implement a major Goods and Services Tax (GST) rate reduction. The new reforms, effective from September 22, 2025, are expected to provide a much-needed stimulus to the sector, which has been grappling with sluggish demand in recent times.<\/p>\n\n\n\n
The new GST framework simplifies the tax structure into two main slabs: a 5% rate for essential goods and an 18% standard rate for most goods and services. Under this new system, the GST on small cars and two-wheelers with an engine capacity of up to 350cc has been slashed from 28% to 18%. This significant reduction is expected to make vehicles substantially more affordable for a large section of the population.<\/p>\n\n\n\n
Major automakers have already announced that they will pass on the full benefit of these tax cuts to customers. Maruti Suzuki, India’s largest carmaker, has declared price reductions on its popular models, with some entry-level cars now starting at a price point below \u20b94 lakh, a figure not seen in nearly five years. Similarly, two-wheeler manufacturers like Hero MotoCorp and Honda have also announced price cuts, with savings of up to \u20b918,800 on some models.<\/p>\n\n\n\n
Industry analysts are optimistic about the impact. According to a report by Motilal Oswal Financial Services, the GST cut could lower vehicle prices by up to 7%, a move that is expected to trigger a significant boost in demand, especially in the entry-level segments. The timing of the cuts, coinciding with the festive season, is seen as an ideal catalyst for a market turnaround.<\/p>\n\n\n\n
The reform is also expected to have a positive ripple effect on the entire automotive ecosystem. Lower GST rates on auto parts, which have also been reduced to 18%, will benefit the large ancillary industry, including manufacturers of tires, batteries, and other components. This, in turn, is expected to create a multiplier effect on Micro, Small, and Medium Enterprises (MSMEs) and generate new employment opportunities across the supply chain.<\/p>\n\n\n\n
While the new tax structure is a boon for small and mid-sized vehicles, larger luxury cars and SUVs will now face a higher, flat GST rate of 40%. This new slab, while a substantial increase for some models, simplifies the complex tax and cess structure, aiming to make it more predictable for businesses.<\/p>\n\n\n\n
Market Review:
The announcement has been met with a mixed but largely positive response from market analysts and industry experts. The stock market reacted favorably, with shares of consumer goods, appliance, and healthcare companies seeing an upward trend. Analysts believe that the tax cuts will spur consumer spending, which in turn will boost the economy.
A market review by a leading research firm noted that the reduction in GST rates on essential items would “put more money in the pockets of the middle-class and lower-income families,” thereby increasing purchasing power. The firm also predicted that the move would encourage small and medium-sized enterprises (SMEs) to formalize their operations and become part of the GST network.<\/p>\n\n\n\n
However, some economists have voiced concerns about the potential impact on government revenue. While acknowledging the pro-consumer benefits, they have called for a careful watch on the fiscal deficit. Nonetheless, the overall sentiment is optimistic, with the business community expecting a surge in demand and a boost to local manufacturing.<\/p>\n\n\n\n
The government is hopeful that by encouraging ‘Make in India’ products and reducing the tax burden on consumers, it can create new employment opportunities and accelerate the country’s economic growth. The reforms are seen as a strategic move to address inflation and to stimulate both the supply and demand sides of the economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
NEW DELHI \u2013 Prime Minister Narendra Modi has made a public appeal to the citizens of India to use ‘Swadeshi’ (indigenous) products, announcing that the prices of “99 percent of items will come down.” The Prime Minister stated that this move is a part of the ‘Make in India’ initiative to promote domestically manufactured goods…<\/p>\n","protected":false},"author":2,"featured_media":6412,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-6411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national"],"yoast_head":"\n
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