Finance Minister Sitharaman announced that recent GST cuts effective from 22 September will inject nearly ₹2 lakh crore into the economy.
The move reduces tax rates on consumer goods, autos, and durables, directly boosting purchasing power.
Analysts expect rural and semi-urban markets to benefit most, where price sensitivity is high.
FMCG, auto, and retail sector stocks are already showing signs of renewed investor interest.
The cuts are designed to support demand revival ahead of the festive season.
Economists caution that inflationary risks could rise if supply chain bottle
necks persist.
The government argues that higher consumption will offset any near-term revenue loss.
Market participants see this as a bold pro-growth signal from the Centre.
Fiscal monitoring will remain crucial to ensure that state finances are not strained.
Overall, the GST cuts highlight a policy tilt towards stimulating consumer spending.