Finance Minister Nirmala Sitharaman has said that GST rates will come down further, with the process of rationalising tax slabs nearing completion. Speaking at The Economic Times Awards, she stated that the Revenue Neutral Rate (RNR) had already dropped from 15.8% in 2017 to 11.4% in 2023 and hinted at further reductions.
"It will come down even further," Sitharaman told an audience, underscoring that the Group of Ministers (GoM) on GST rationalisation, set up in 2021, has made significant progress.
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The GST Council, chaired by Sitharaman and comprising state finance ministers, is close to taking a final call on key changes. The minister mentioned a final review before presenting the rationalisation proposal at the next Council meeting.
"The groups have done excellent work, but I still have taken it upon myself to completely review their findings before taking it to the Council," she said.
The rationalisation process includes reducing tax slabs, streamlining rates, and addressing critical industry concerns.
On stock market volatility, Sitharaman cited global uncertainties such as wars, Red Sea disruptions, and piracy threats, questioning whether anyone could predict absolute stability.
She also warned against excess inventory dumping from foreign markets, particularly after the US imposed additional tariffs on China and other countries. The government, she said, is watching trade patterns closely to protect small and medium enterprises from unfair competition.
"These are the balancing acts we have to do," she stated.
Sitharaman reaffirmed the government’s commitment to diluting its stake in public sector banks, encouraging greater retail investor participation.
"We want to have more retail investors in public sector banks," she emphasized.
She also addressed concerns over non-banking financial companies (NBFCs), noting that regulatory interventions had corrected risky micro-credit exposure among smaller lenders.
On the India-US trade deal, Sitharaman said both sides aim for a mutually beneficial agreement. She also hinted at an intensified approach toward negotiations with the EU and UK, ensuring national interests remain the priority.
She criticized previous trade agreements under the UPA regime, stating that some had failed to serve India’s interests, leading to a review of pacts with Japan, South Korea, and ASEAN.
Urging private players to be more vocal about investment sentiment, she said, "If they don't speak out, how will the government have any clue on how things are moving?"
Sitharaman reinforced confidence in India’s strong economic trajectory, emphasizing its status as the world’s fastest-growing major economy since FY21.