GST 2.0 Reform to Boost Consumption and Growth : Home Credit India CEO

New Delhi | September 5, 2025 :  The rollout of GST 2.0 has been welcomed as a major step for the economy. The new structure reduces tax slabs and fixes the inverted duty issue. It also lowers GST on key products that people use daily.

Mr. Vivek Singh, CEO of Home Credit India, called the reform timely and progressive. He said it will give a strong push to both consumption and growth.

Relief for Middle-Class Families

The new rules under GST 2.0 will ease the burden on middle-class homes. Items like packaged food, personal care products, and kitchenware now fall in the 5% tax bracket. This means families will spend less on basics each month.

Mr. Singh added that the step could also cut inflation by more than one percentage point.

Dual Impact on Consumers

According to him, the change will create a two-way benefit. First, lower prices will raise demand for FMCG, durables, and electronics. Second, families may use their savings to build stronger financial safety nets.

He also noted that the timing is important. Coming just before the festive season, GST 2.0 will boost confidence and spending. Many households may now plan to buy home appliances, smartphones, or two-wheelers.

Opportunity for Affordable Financing

For Home Credit India, the reform will drive more demand for simple and fair financing. The company expects families to seek easy EMI options for both essential and aspirational needs.

Long-Term Economic Gains

Mr. Singh stressed that GST 2.0 is more than a tax cut. It is a long-term growth driver. By lifting demand in several industries, it will also improve financial inclusion.

Beyond Simplification

He concluded that the reform will act as a multiplier for the economy. It will not only support consumption but also strengthen the overall financial system.

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