GST rate cuts have been offset by ‘galloping’ inflation: Congress
The prices of several consumer goods had returned to nearly their pre-GST cut levels without any significant increase in consumption, the Congress spokesman claimed
On Monday, September 21, 2026, Congress stated that the effects of GST rate cuts on various products were being nullified by "galloping inflation," as prices of several consumer goods began to return to pre-cut levels within a year. Despite the GST rationalization introduced in September 2025 being deemed "long overdue," its impact on consumer behavior has been "mixed at best."
Automobile sales were positively affected, while apparel sales did not show significant improvement. Congress general secretary (communications), Jairam Ramesh, highlighted this disparity in a post on X, stating that the initial claims of GST rate cuts being a "game changer" were exaggerated. Prices of several consumer goods had almost reverted to their levels prior to the GST cuts, without any substantial surge in consumption, according to Ramesh.
He also criticized the prevailing narrative surrounding India's growth, attributing it to inflated headline GDP figures that fail to address underlying issues. Ramesh pointed out that consumption is not uniformly robust across income groups, and private investment remains stagnant, with real wages declining. He emphasized that the economy exhibits multiple faultlines that are largely unacknowledged by the ruling party and its supporters.
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