GST 2.0 Reforms: Reliance Welcomes a Defining Moment for India’s Consumption Economy

India’s retail and consumption landscape witnessed a defining moment with the Government of India’s announcement of second-generation Goods and Services Tax (GST) reforms. The decision, hailed as a “Diwali Gift” to the people of India, is being widely welcomed across sectors for its potential to rationalise tax rates, simplify compliance, and bring relief to household budgets.

Among the first to voice strong support was Shri Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited and Reliance Retail, the country’s largest retailer.

Mukesh Ambani: Reforms to Boost Consumption and Economic Growth

Congratulating Prime Minister Shri Narendra Modi for delivering on a promise of structural reforms, Shri Ambani said,

“The GST rationalisation is a progressive step towards making products and services more affordable for consumers, easing operational complexity of doing business, lowering inflation and driving consumption growth across the retail sector. This will serve as a big booster to India’s economic growth. With GDP growth rate having reached 7.8% in the first quarter of this financial year, the new reforms have the potential accelerate the economy even further, raising the growth rate closer to double digits.”

His statement reflects the deep link between taxation and consumer demand. With India’s consumption-driven economy accounting for nearly 60% of GDP, easing taxes at this juncture could significantly boost discretionary spending, lift sentiment, and strengthen rural as well as urban demand.

Isha Ambani: A Win–Win for Consumers and Businesses

Adding her perspective, Ms. Isha Ambani, Executive Director of Reliance Retail Ventures Limited, emphasised the transformative nature of the reforms:

“The new GST regime as a transformative step, brings relief to household budgets and simplifies compliance for the industry, creating a unique win–win for both consumers and businesses. Reliance Retail is committed to pass on the entire benefit of the new GST regime to customers from Day 1 across all its consumption baskets.”

She further highlighted the company’s pledge to ensure that cost savings reach customers directly and transparently, setting a benchmark for responsible retailing in India.

Opportunities for MSMEs, Farmers, and Supply Chain Partners

While the reforms are expected to make everyday essentials and lifestyle products more affordable, the ripple effects extend far beyond consumers. Reliance Retail, with its vast ecosystem of suppliers, kirana partners, and producers, underlined that the benefits of GST 2.0 will strengthen every stakeholder in the retail value chain.

From farmers supplying agri-produce to MSMEs engaged in manufacturing and packaging, the rationalised rates will improve competitiveness and encourage scale. For kirana stores, which form the backbone of India’s consumption economy, simplified compliance and reduced costs will translate into better margins and improved business sustainability.

A Defining Moment in India’s Consumption Journey

The GST reforms are more than just a tax update; they mark a shift in India’s approach to economic inclusivity and consumer welfare. By reducing compliance burden, keeping inflation in check, and boosting purchasing power, the new GST structure strengthens the foundation for India’s march toward a $5 trillion economy and beyond.

Reliance Retail’s assurance of passing on benefits directly to consumers is a reflection of its positioning as a market leader committed to scale and affordability. With over 18,000 stores and a customer base that spans across metros, tier-2 towns, and rural India, the company’s proactive move will amplify the positive impact of GST 2.0.

Exclusive Analysis With MSME's Perspective

From the perspective of MSMEs, which form the backbone of India’s retail supply chains, GST 2.0 has dual benefits:

1. Lower Cost of Compliance: Simplification of multiple tax slabs reduces complexity, especially for small manufacturers and traders who often struggle with classification disputes and refund delays.

2. Demand Boost: As household budgets stretch further, demand for MSME-produced goods—from food items to consumer durables—is likely to increase.

3. Market Expansion: Retailers like Reliance Retail, which source extensively from MSMEs, are expected to deepen supplier partnerships, opening doors for small businesses to tap into national distribution networks.

This sets the stage for an inclusive growth model, where the benefits of reform flow from large corporations to small enterprises and eventually to consumers.

Building Consumer Confidence

As India’s consumption story continues to grow, the GST rationalisation strengthens consumer confidence and reinforces the government’s commitment to ease of doing business. For consumers, it means more value for every rupee spent; for businesses, it signals an era of transparency, efficiency, and scalability.

Reliance Retail, with its pledge to be at the forefront of this change, is positioning itself not only as a retail leader but also as a partner in nation-building, helping shape an inclusive, competitive, and affordable consumption economy for 1.4 billion Indians.