Rate cut will help neutralise adverse impact of US tariffs, create more demand: Goyal

NEW DELHI: Commerce and industry minister Piyush Goyal Thursday said that the reduction in GST will boost demand and also help neutralise the adverse impact of US tariffs on Indian goods."It will create greater demand in the domestic market and will offset the impact of US tariffs.

We are also working with 50 countries on complementary products and other measures," he said.Goyal said authorities in the UAE were helping it connect with shrimp buyers in the country and garment suppliers in Africa. Similarly, there was a move to ship eggs and chicken to Singapore, which is also examining the import of Indian fish. "We are looking at complementarities with other countries and exports (in 2025-26) will be higher than last year," he asserted.The minister also said the proposal for the Export Promotion Mission is headed for approval by the Union Cabinet and multiple other options are being discussed to help exporters. "The idea is to get maximum bang for the buck, and we are seeing how we can innovate," he said.He said several steps such as decriminalising 500 more provisions of various laws are being looked into and ways to expand domestic demand are being examined.

He dismissed suggestions that the GST cut was rushed because of US tariffs. "Such a massive overhaul is not possible overnight. The finance ministry has been discussing it for months, consulting other ministries. Every item has been examined carefully and its impact assessed. No one had imagined the extent of reduction that has taken place along with the reforms that have been announced," Goyal said.He said that the decisions by the GST Council late Wednesday will further strengthen the Indian economy.

"Gone are the days when the economy was struggling and was part of Fragile Five. We are in a situation where it is possible to give huge benefits, which will have a multiplier effect, boost demand and help keep inflation low."Goyal said that every industry segment stood to gain. "Every stakeholder and consumer in the country stands to benefit from the announcements, which are truly game-changing and will play a crucial role in the months and years ahead on our journey towards Viksit Bharat 2047.

I would like to appeal to all of you to resolve that the entire benefit of yesterday's significant concessions in GST will be passed on to customers," Goyal said at an industry event.The commerce department said that measures such as faster tax refunds for exporters, provisional relief under the inverted duty structure, and rationalisation of rates across key sectors will ease liquidity pressures, reduce working capital blockages, and strengthen supply chains."The rationalisation of GST is expected to lower input costs for MSMEs and exporters, reduce inflationary pressures on consumers, and correct structural anomalies such as inverted duty structures," it said.