GST rate cuts have been offset by ‘galloping’ inflation: Congress
The Congress party claims that the positive impact of GST rate cuts implemented in September 2025 has been negated by “galloping inflation,” causing consumer product prices to return to pre-cut levels within a year. Congress general secretary Jairam Ramesh criticized the government's economic narrative, stating that consumption is not buoyant and private investment is not booming despite headline GDP figures.
Why it matters
This article highlights a significant economic debate in India, questioning the effectiveness of government policies (GST cuts) and the overall health of the economy, which could influence public perception and future policy decisions.
The Congress said on Monday (September 21, 2026) that the impact of GST rate cuts on a range of commodities was being eroded by “galloping inflation”, with prices of several consumer products returning to pre-cut levels within a year.
Congress general secretary (communications) Jairam Ramesh, sharing a media report on the issue, said the GST rationalisation announced in September 2025 had been “long overdue”, but its impact on consumption had been uneven.
“The GST rate cuts in September 2025 were proclaimed to be game changers. They had, of course, been long overdue — but to boast of them as magic wands was hyperbole. In fact, their impact on boosting consumption has been mixed at best. For instance, automobile sales benefited while apparel sales did not,” Mr. Ramesh said in a post on X.
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