Economy & Markets

Congress General Secretary Jairam Ramesh has criticized the economic impact of Goods and Services Tax (GST) rate cuts implemented in September 2025, arguing that rising commodity prices have neutralized their intended benefits. He stated that while the reductions were overdue, describing them as transformative was hyperbolic, noting that prices for food, consumer goods, and automobiles have returned to pre-cut levels within a year without generating meaningful consumption increases. Ramesh highlighted mixed sectoral performance, citing automobile sales growth against stagnant apparel sales, and questioned the accuracy of headline quarterly GDP figures. He asserted that underlying economic faultlines persist, including weak consumption across income segments, lackluster private investment, and declining real wages, despite official data showing robust GST collections driven largely by import-related taxes