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GST cuts to boost demand, but global risks loom, says finmin
Mint Bangalore
|October 28, 2025
Goods and Services Tax (GST) rate cuts are set to bolster domestic demand by easing the tax burden on consumers and businesses, spurring consumption and investment across sectors, and supporting job creation, the finance ministry said in its monthly economic review for September, released on Monday.
A strong performance in industry and services, along with a stable labour market, is expected to reinforce this momentum, the ministry noted. However, it cautioned that persistent global uncertainties could weigh on exports and external demand, posing downside risks to growth.
The report said ongoing structural reforms and new government initiatives, including the roll-out of GST 2.0, are expected to cushion the economy against these challenges.
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