GST 2.0: A Defining Moment for India's Growth Story

The reforms are among the most significant milestones since the tax's rollout in 2017

- SAURABH AGARWAL

India's GDP growth of 7.8% in Q1 FY26 has reaffirmed its position as the fastest-growing large economy in the world. This momentum stems from both robust policy interventions and the confidence of the Indian industry in the economy's long-term trajectory.

Against this backdrop, the GST 2.0 reforms announced by the GST Council on 3 September stand out as one of the most significant milestones since the tax's rollout in 2017. These reforms are more than a fiscal adjustment—they signal a new era of trust and collaboration between the central government, the states, and the business community. In doing so, they set the stage for India's ambitious goal of becoming a $30 trillion economy by 2047.

The rationalization of rate slabs, the shift of essential items into the 5% bracket, and the exemption of individual life and health insurance from GST are both timely and strategic. By easing the burden on mass-consumption goods, these measures are poised to stimulate demand and boost household purchasing power just as Indians head into the festival season.

This sets the foundation for a broader, consumption-led growth cycle by lowering input costs and translating them into more affordable consumer prices—an important cushion amid ongoing global uncertainties.

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