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Jairam Ramesh Questions GST Cuts' Impact Amid Weak Consumption, Investment
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News18•21-09-2026, 14:30
Jairam Ramesh Questions GST Cuts' Impact Amid Weak Consumption, Investment
- •Congress leader Jairam Ramesh claims the impact of September 2025 GST rate cuts has been mixed, with benefits neutralized by rising inflation.
- •Ramesh stated that while automobile sales benefited, apparel sales did not, and prices of many consumer goods returned to pre-cut levels without significant consumption increase.
- •He criticized the government's economic narrative, highlighting concerns over consumption, private investment, and declining real wages.
- •Ramesh argued that headline quarterly GDP numbers overlook 'fault lines' in India's growth story, which are not acknowledged by the ruling establishment.
- •His remarks come as India's annual retail inflation rose to 4.82% in August 2026, with price pressures extending beyond food and fuel.
Key Questions Answered
Congress leader Jairam Ramesh claimed that the impact of the September 2025 GST rate cuts has been mixed, noting that automobile sales benefited while apparel sales did not and that rising inflation has neutralised benefits for many consumer goods.
The wide-ranging rate rationalisation approved by the GST Council came into effect on September 22, 2025.
India's annual retail inflation rose to 4.82 per cent in August 2026, with price pressures extending beyond food and fuel to categories like clothing and household goods.
