India Inc CFOs Forecast Strong Economic Growth Post-Reform, ETCFO

As the Goods and Services Tax (GST) 2.0 reforms came into effect on Monday, India Inc Chief Financial Officers (CFOs) said the government’s ‘GST Bachat Utsav’ will be a powerful trigger for consumption, manufacturing competitiveness and a broader economic upcycle.

Announced by Prime Minister Narendra Modi in a special address to the nation on Sunday, the GST Bachat Utsav is positioned as the next phase of India’s indirect tax reform journey. Modi described the measure as a “new economic chapter” that will simplify compliance, reduce tax burdens, and boost consumer savings.

“From today, the nation will celebrate the GST Bachat Utsav. Your savings will increase, and you will be able to buy your favourite things. This reform will benefit every section of society,” Modi said in his address. He also linked the initiative to the Make in India and Swadeshi push, urging citizens and industries to prioritise domestically manufactured goods.

CFOs flag immediate consumption boost

With the reforms coinciding with the onset of the festive season,India Inc CFOs expect a surge in demand across categories such as consumer goods, housing materials, automobiles, e-commerce and healthcare.

Dev Tripathy, CFO, Philips India, said the move would “significantly boost consumer sentiment and domestic consumption.” According to him, streamlined compliance and tangible savings “allow businesses to leverage heightened spending, while improved insurance penetration in healthcare addresses a critical need.”

Harish Kumar Agarwal, CFO, Kamdhenu Group, pointed out that affordability in core sectors such as housing, durables and vehicles would directly lift demand. “Consumer confidence will be at a high and spending will peak this festive season. For India Inc, this is the perfect opportunity to double down on growth,” he said.

Mayank Gupta, CFO, CarDekho Group, noted that affordability is central to auto purchases. “This reform can provide an immediate lift to demand, both for new and used cars. Simplified GST and a lower tax burden allow us to innovate with flexible financing and digital-first solutions, strengthening India’s position as a consumer-driven economy,” he said.

Ramesh Bafna, CFO, Zepto, highlighted the retail impact, “The reforms will put more money into consumers’ hands. We see this as a driver of volumes and a catalyst for stronger formalisation and digital adoption in retail.”

Nitesh Patwari, Group Head-Finance, Legal & Corporate Governance, Bombay Shaving Company, added, “With revised GST 2.0 rates and visible discounts across essentials and lifestyle categories, we expect substantial upswing in consumer demand. E-commerce platforms leading the charge will boost festive spending, accelerate inventory turnover, and enhance consumer trust.”

Manufacturing and competitiveness gains

Several CFOs stressed that the significance of GST 2.0 goes beyond a festive consumption surge, as the reforms will also strengthen India’s manufacturing competitiveness.

Gurvinder Singh, CFO, Mitsubishi Electric India, said GST 2.0 would “induce strong demand, boost industrial activity, and reduce manufacturing costs, thereby improving competitiveness across industries.”

Sanjeev Bhatia, CFO, BluPine Energy, projected that lower costs would “fuel demand across manufacturing and allied sectors. The resulting higher demand will not only benefit consumers and businesses but also enhance tax collections, a win-win for the economy.”

Kishore Nuthalapati, CFO, BEKEM Infra Projects, underscored the demand firepower unleashed. “GST rationalisation coupled with income tax relief releases over Rs 2 lakh crore into the hands of people. To make GST 2.0 more fruitful, we need more Make in India activity and employment creation. Supporting Indian-made goods is both a right and a responsibility,” he said.

Logistics and services multiplier effect

CFOs in logistics, services and workforce solutions said the GST Bachat Utsav would trigger a demand-led cycle that extends well beyond Diwali.

Aneel Gambhir, CFO, DTDC Express, said Indian consumers are highly responsive to savings-linked campaigns. “GST-linked offers can directly translate into higher discretionary spending. This creates a multiplier effect, higher volumes, improved cash flows, and stronger inventory turnover. Such initiatives can sustain momentum beyond Diwali,” he said.

Nagesh Bailur, CFO, Randstad India, emphasised the human capital angle. “The GST Bachat Utsav unlocks consumer demand and improves cash flows, while also boosting investment confidence. At Randstad, we see our role as aligning talent strategies and workforce planning to translate policy momentum into sustainable business outcomes,” he said.

Sanjeev Jha, CFO, Persol India, called the reform a “short-term demand accelerator” that would support MSME cash flows and broaden tax compliance.

Looking ahead: CFOs see GST Bachat Utsav as bridge to sustained growth

India Inc CFOs say the GST Bachat Utsav is more than a festive-season consumption trigger — it is a structural lever that can sustain demand across sectors.

Pankaj Vasani, Group CFO, Cube Highways, said: “The GST Bachat Utsav is putting rupees where they matter most, back into people’s pockets. Expect a multiplier effect, reinvigorated demand across sectors, and fresh tailwinds for India Inc at just the right season, reinforcing the nation’s economic momentum at a decisive inflexion point.”

Sanjeev Jha, CFO, Persol India, added, “This uplift in consumption, especially in retail, FMCG, and durables, has a cascading effect, improving MSME cash flows, broadening tax compliance, and creating fresh growth avenues for India Inc. It is a timely nudge to boost momentum in the economy.”

Mayank Gupta, CFO, CarDekho Group, highlighted long-term benefits, “Simplified GST and lower consumer tax burden allow us to innovate with flexible financing, digital-first solutions, and customer-friendly offerings. The multiplier effect will not only accelerate growth for India Inc. but also strengthen India’s position as a consumer-driven, innovation-led economy.”

These perspectives show that India Inc CFOs see GST 2.0 as a bridge from immediate festive demand to sustained growth, combining higher spending, improved industrial competitiveness, and stronger formalisation.

• Published On Sep 23, 2025 at 10:46 AM IST

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