GST 2.0: From Festive Boom to Sustained Growth — Can India Maintain the Momentum?
GST 2.0: From Festive Boom to Sustained Growth — Can India Maintain the Momentum? In a recent press briefing, several Union Ministers announced that GST 2.0 has been a major success. Introduced just ahead of the festive season, this revamped tax structure—featuring only two simplified slabs —was positioned as a “bonus for the people,” designed to spur spending and accelerate economic growth. And it worked. The electronics sector recorded a 25% surge in sales during Navratri , while Maruti Suzuki sold 51,000 cars on Dhanteras alone —that’s roughly 35 cars a minute ! Hyundai too reported a 25% rise in festive sales . With increased car sales came a ripple effect—boosting demand for accessories, furniture, and sweets—driving a broader surge across the economy. So far, so good. But is that enough? The Need to Move Beyond a Festive Surge While India is projected to clock the highest growth rate globally at 6% , this still falls short of its own 8% target . Realistically, even ...