In order to overcome the tariff shocks, India is taking various steps. Prime Minister Narendra Modi’s Independence Day speech mentioned about a GST cut by diwali and the revised GST slabs are already here. GST Council has announced new rates for different products and services. While some are nil to low, some are marked demerit and kept high. On that note, some of the business leaders have expressed their thoughts on the same with Thought Habitat.
Avneesh Sood, Director, Eros Group
The GST Council’s move to reduce the tax rate on cement from 28% to 18% is a landmark reform that will have far-reaching benefits. For the common man, this directly translates into greater affordability in home construction and aligns perfectly with the government’s vision of ease of living. At the same time, developers gain significant relief on input costs, which ensures ease of doing business and creates healthier project economics.
This step will encourage timely delivery, improve margins, and ultimately make housing more accessible, especially in the affordable and mid-income segments where cost sensitivity is highest. Beyond immediate savings, the reform is also set to boost buyer sentiment and sustain housing demand at a critical juncture for the industry. It is a well-calibrated policy decision that supports both consumers and developers, while reinforcing the national mission of ‘Housing for All.’
Rahul Singh, CIO-Equities, Tata Asset Management
The GST rate rationalisation, following the income tax cuts and lower interest rates, is a serious effort to boost consumption and hence the overall economic growth outlook. A wide range of products and some services will now be at lower rates which is a positive surprise. This coupled with certain process reforms is also positive for SMEs. While the direct beneficiaries include consumer, autos, cement, healthcare and insurance sectors, the second order beneficiaries in terms of growth will be retail banks & NBFCs.
Anooshka Soham Bathwal, Founder & CEO, Dhanvesttor
The GST council has come with historical changes in GST Rates on 03 September 2025. While reduction in the number of broader slabs from four to two will enable ease of doing business, rationalization of rates across the sectors is likely to benefit consumers as a whole. We believe that these rate rationalizations will steer demand across Auto, Cement, FMCG, Consumer Durables, Textiles, Footwear, Insurance, and to benefit the economy, overall. This development is also likely to smoothen the impact of recent Tariff Hikes by the US and could support GDP growth. On companies’ side, as this benefit is supposed to be passed on to consumers, the impact shall be limited to demand boost and resultant operating efficiencies. From a market perspective, it will be positive for medium to long-run investors.
Alok Dubey, Chief Finance Officer, Acer India
With GST 2.0 ushering in a simplified structure, consumer optimism is at an all-time high. The move to clearly defined 5% and 18% tax slabs for most goods used by common man is expected to ease inflationary pressures and strengthen household purchasing power. Combined with recent RBI measures and income tax relief, this reform is poised to stimulate consumption and add an estimated 1% to 1.2% to GDP growth in the coming quarters.
At Acerpure, Acer’s consumer appliances division, we see this as a pivotal moment. By making products like smart TVs, ACs more accessible, the reform not only enhances affordability but also fuels aspirational buying. This will further cement India’s position as one of the world’s largest consumption markets and make it an increasingly attractive destination for global investment. It empowers us to bring innovative, lifestyle-enhancing solutions into more Indian homes—aligning perfectly with the evolving ambitions of today’s consumers.
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