The GST rationalisation is expected to boost India’s GDP growth by 0.2–1.2% in FY25–26. By lowering prices and encouraging consumption, it strengthens domestic demand, offsets tariff pressures, and simplifies compliance — a crucial reform for India’s growth story.
GST Rationalization and the Projected Impact on India’s Economic growth
The GST rationalisation is expected to boost India’s GDP growth by 0.2–1.2% in FY25–26. By lowering prices and encouraging consumption, it strengthens domestic demand, offsets tariff pressures, and simplifies compliance — a crucial reform for India’s growth story.