GST cut boosts electronics and automobile sales, employment and exports also expected to pick up:

News Topical, Digital Desk : Union Electronics and Telecommunication Technology Minister Ashwini Vaishnav said on Saturday that the GST reforms done by the government last month are expected to increase electronics consumption by an additional Rs 20 lakh crore. The Union Minister said that according to data received from various retail chain operators, the reduction in GST rates has led to a 20-25 percent increase in the sales of electronic products ranging from mobile phones to TVs, ACs during Navratri this year as compared to the same period last year. During this period, all the 85-inch televisions available at retail stores were sold out.

In a joint press conference with Finance Minister Nirmala Sitharaman and Commerce and Industry Minister Piyush Goyal, Vaishnav said that the increasing demand for electronic goods is directly impacting the manufacturing of these products. Manufacturing of electronic products is growing at double digits on a year-on-year basis. This year, there is every possibility of consumption increasing by more than 10 percent. This means there is a strong possibility of additional consumption of Rs 20 lakh crore compared to last year. The double-digit growth in electronics manufacturing will also have an impact on employment. This sector already provides direct employment to 25 lakh people.

Union Minister Piyush Goyal said that as soon as GST was announced, foreign investors immediately realized it was a huge benefit and there would be a huge increase in demand. On the question of some e-commerce companies not passing on the benefits of GST reduction to consumers, Goyal said that generally all companies have passed on the benefits. Furthermore, companies have announced cash bonuses and discounts. However, if any site or platform has not passed on the benefits, the Consumer Affairs Department can take action. All industries and businesses have assured that the full benefits will be passed on to consumers.

Goyal said that this year's income tax exemption and subsequent GST reduction will have several positive effects on the economy. Following the GST reduction, the International Monetary Fund (IMF) has raised its growth forecast for India to 6.6 percent, up from its previous estimate. A spirit of Swadeshi has been instilled in the country. Despite numerous challenges, India's exports are increasing.

Key points related to the sale

Stock of 85-100 inch TVs got exhausted after Navratri
Maruti Suzuki sales during Navratri increased by 100% compared to last year
Mahindra & Mahindra sales increased by 60%
Tata Motors sold 50,000 units during the festive season
Two-wheeler sales also doubled
Electronics sales increased by up to 25%

There will be positive growth in exports

Commerce and Industry Minister Piyush Goyal expressed confidence that India's exports will register positive growth in the current financial year 2025-26, despite global uncertainties due to US tariffs. He said that the country's goods and services exports have registered growth during the first six months (April-September 2025), increasing by about five percent to $413.3 billion.

India's merchandise exports also grew by three percent to $220.12 billion during this period. US tariffs have impacted global supply chains, leading to a decline of nearly 12 percent in India's exports to the US in September. Goyal said negotiations on the proposed bilateral trade agreement between India and the US are progressing in a cordial atmosphere. He said India will protect the interests of farmers, fishermen, and the MSME sector.