Archive · 24 Sep 2025
RBI Bulletin: GST Reforms to Boost Economy and Consumption
The Reserve Bank of India (RBI) released a report discussing new GST reforms in India.
These reforms are expected to make it easier to do business and lower prices.
The report noted the economy is doing well, with manufacturing and services at a high.
The RBI expects continued growth.
US import tariffs are bringing some headwinds, but the economy shows resilience.
The reforms aim to boost tax collection and make it easier for businesses to thrive.
GST reforms are expected to promote ease of doing business and strengthen consumption growth.
The new GST structure includes two rates: 5% and 18%.
The Indian economy exhibited marked resilience with five-quarter high growth during Q1 2025-26.
Manufacturing and services activity is at a decadal high.
Current account deficit moderated in Q1, supported by strong services exports and remittance inflows.
- Who
- RBI
- What
- Reported on GST Reforms
- When
- September 24, 2025
- Where
- India
- Why
- To assess the economic outlook
Economic Uncertainty
Economic Optimism
US Import Tariffs
Economic Uncertainty
High US import tariffs brought in some headwinds.
Economic Optimism
Developments have underscored the resilience of the economy.
- GST Reform Impact
- Ease of doing business, lower retail prices, stronger consumption growth
- GST Rate Structure
- Two rates: 5% and 18%
- Q1 2025-26 GDP Growth
- 5-quarter high
- Manufacturing & Services
- At a decadal high
- Current Account Deficit (Q1)
- Moderated compared to previous year
- Net FDI Inflows (July)
- 38-month high
Sources
FE Exclusive poll: RBI to hold on to rates
System liquidity turns deficit first time in FY26
Rupee shielded by central bank intervention even as pressure lingers
Q1FY26 GDP estimates reinforce the resilience of domestic growth drivers: RBI bulletin
