GST Bachat Utsav: Price Cuts Boost Consumption Amid Economic Challenges

The implementation of revised Goods and Services Tax rates has led to a drop in prices for 375 essential items, effective from Monday. This move, dubbed 'GST Bachat Utsav,' aims to enhance consumption and support an economy grappling with external trade challenges.

The adjustment consolidates existing tax rates into two: 5% and 18%, thereby reducing costs for daily essentials and potentially saving households up to Rs 2.5 lakh crore, according to government estimates. Major manufacturers across sectors have lowered prices in response, benefiting consumers nationwide.

While Prime Minister Narendra Modi hails this as a significant reform, some state leaders and opposition parties criticize the Central government's assumption of credit amidst concerns over state revenue shortfalls. The reform arrives at a crucial period to spur growth, particularly during the festive season, against the backdrop of heightened export market tariffs.

(With inputs from agencies.)