Jairam Ramesh questions GST cuts' impact, flags weak consumption and investment

New Delhi [India], September 21 (ANI): Congress leader Jairam Ramesh on Monday claimed that the impact of the Goods and Services Tax (GST) rate cuts announced in September 2025 has been mixed, alleging that rising inflation has neutralised the benefits for several consumer goods.
In a post on X, Ramesh said, "The GST rate cuts in September 2025 were proclaimed to be game-changers. They had, of course, been long overdue - but to boast of them as magic wands was hyperbole. In fact, their impact on boosting consumption has been mixed at best."
"For instance, automobile sales benefited while apparel sales did not," he added.
Ramesh further claimed that prices of several consumer goods had returned to nearly their pre-GST cut levels within a year without leading to a meaningful rise in consumption.
"Now comes evidence that the effect of GST rate cuts on various commodities is being neutralised by galloping inflation. In many consumer goods, prices have returned to nearly the pre-GST cut level within a year without any meaningful consumption increase," he said. 
The Congress leader also criticised the government's economic narrative, questioning the interpretation of quarterly GDP figures and raising concerns over consumption, private investment and real wages.
"Headline quarterly GDP numbers may give momentary elation to the ruling establishment overlooking their imperfections, but there are many fault lines in the India growth story that are simply not being acknowledged by the PM and his brigade of cheerleaders," Ramesh said.
"Neither is consumption buoyant across income segments nor is private investment booming. Real wages are on the decline," he added.
The GST Council had approved wide-ranging rate rationalisation in September 2025, with revised rates for several goods and services coming into effect from September 22, 2025. The reforms were presented by the government as measures aimed at simplifying the tax structure, reducing prices and supporting consumption. 
Ramesh's remarks come amid fresh concerns over price pressures. India's annual retail inflation rose to 4.82 per cent in August 2026, with inflationary pressures extending beyond food and fuel to categories including clothing and household goods. (ANI)