Rishi Kumar Bagla, president of the Confederation of Indian Industry’s Western Region, shared some good news for businesses and everyday shoppers at a CII event in New Delhi on Thursday. He explained how the latest Goods and Services Tax (GST) reforms are making life easier for companies by simplifying tax filing and boosting the ease of doing business in India.
Bagla pointed out two big wins from these GST 2.0 changes, which kicked in on September 22. “First, we’ve cut the tax slabs down to just two—5 percent and 18 percent—which makes goods a lot cheaper and more affordable for consumers,” he told . “Second, the government has streamlined the whole indirect tax system, cutting red tape on filings and helping businesses thrive.”
These reforms slashed taxes on about 370 products, from daily essentials to life-saving medicines. Items that once faced rates between 5 and 18 percent now often fall into a zero-tax category. No more confusing four-slab system of 5, 12, 18, and 28 percent—it’s simpler now, encouraging more spending and growth.
Looking at India’s bigger economic picture, Bagla highlighted the country’s fast-paced growth. The government is pouring money into key infrastructure like highways, airports, and rural roads. “This push will create jobs and unlock financial resources, sparking even more consumer spending,” he added.
On the topic of potential US tariffs, Bagla kept it cautious. Talks between India and the US are still ongoing, so it’s too early to say much. He acknowledged short-term challenges but emphasized that India’s strong private demand will keep the economy steady in the long haul.
The CII has been vocal in support of Prime Minister Narendra Modi’s push for more domestic manufacturing and buying Indian-made goods. They say his recent call has given fresh energy to the Swadeshi movement, especially with these GST 2.0 tax cuts on necessities.
In a statement, the CII called the prime minister’s vision a game-changer for India’s development. The reforms should raise household incomes by lowering costs on everyday items, driving up domestic demand and supporting local production. Overall, it’s a win for India’s economy and the push for self-reliance.
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