GST rate rationalisation boosts consumption; economy to maintain growth momentum: FinMin report
GST
Dated:- 27-11-2025
PTI
New Delhi, Nov 27 (PTI) The GST rate rationalisation gave a “measurable” boost to consumption, and the Indian economy is on a stable footing to navigate risks and maintain growth momentum through the current fiscal, a finance ministry report said on Thursday.
The Finance Ministry's Monthly Economic Review for October said that with inflationary pressures easing and recent tax reforms boosting household disposable incomes, the near-term consumption outlook appears increasingly positive.
Retail inflation has reached an all-time low in the current series, dropping to 0.25 per cent in October 2025, down from
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re evident over the next two quarters,” it added.
Effective September 22, the GST rates on about 375 items were slashed, making mass consumption items cheaper. Also, GST rates of 5, 12, 18, and 28 per cent have been clubbed into two rates of 5 per cent and 18 per cent, resulting in a reduced price of 99 per cent of daily use items.
The finance ministry report said the external environment remains characterised by elevated trade policy uncertainty, though global pressures have moderated relative to earlier peaks.
With regard to growth prospects, it said that various independent economic assessments place real GDP growth for Q2 FY26 in the range of 7–7.5 per cent, indicating continued strength in underlying economic activity.
Overall,
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ned public capital expenditure, and firming rural and urban demand places the economy on a stable footing, positioning it to navigate emerging risks and preserve its growth momentum through the remainder of FY26,” said the Monthly Economic Review.
The report said that corporate performance remained healthy during the month, with sustained profitability and stable balance sheets. Domestic financial markets continue to draw strength from firm institutional participation.
The report called for structural reforms to sustain and accelerate job creation in the economy.
In a bid to reform the labour markets, the Government of India has implemented 4 Labour Codes: the Code on Wages, 2019; the Industrial Relations Code, 2020; the Code on Socia
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