PM’s Diwali Gift: GST 2.0 Report Card Shows Surge in Vehicle & Electronics Sales

Union Finance Minister Nirmala Sitharaman presented a report card highlighting the positive impact of the recent GST reforms, which she described as the Prime Minister’s Diwali gift to the nation. Addressing a press conference alongside Union ministers Piyush Goyal and Ashwini Vaishnaw, Sitharaman emphasised that tax benefits from GST rate cuts were passed directly to consumers, driving a surge in vehicle and electronics sales.

GST Benefits Passed to Consumers

Sitharaman stated, “The government closely monitored 54 daily-use items. In every case, the tax benefit due to GST reforms has reached the end consumer. In some instances, businesses passed on higher-than-expected cuts.”

The GST overhaul, effective from September 22, included reductions in rates on food, daily essentials, and consumer durables such as TVs and refrigerators. The reforms came amid global economic turbulence, including a 50% tariff imposed on India by the US.

Surge in Vehicle Sales

The Finance Minister highlighted strong sales in the automotive sector:

• Three-wheeler dispatches: +5.5% YoY

• Two-wheeler sales: 21.6 lakh units

• Passenger vehicle dispatches: 3.72 lakh units in September

• Hero Motors: Highest-ever monthly sales

Commerce Minister Piyush Goyal added that Maruti Suzuki sold 1.65 lakh cars in the first eight days of Navratri, Mahindra sales surged 60%, and Tata Motors sold over 50,000 vehicles.

Electronics Consumption Soars

The electronics sector also saw record-breaking growth:

• AC sales doubled on the first day of GST reforms

• TV sales rose 30–35%

IT Minister Ashwini Vaishnaw predicted additional electronic consumption worth Rs 20 lakh crore this year and highlighted a 25% increase in overall electronics sales, underscoring benefits to India’s manufacturing industry and declining food prices due to GST reforms.

Economic Implications

Goyal described the GST overhaul as the biggest reform in post-Independence India, noting that the strong domestic growth led the IMF to revise India’s 2025 growth forecast to 6.6%. The reforms have simultaneously boosted consumer spending, manufacturing, and overall economic sentiment.