GST reforms provided crucial cushion for India's economy: Maruti chief

The GST 2.0 reform has given India's economy a much-needed buffer to weather external shocks, including the ongoing conflict in West Asia, according to Maruti Suzuki India Chairman RC Bhargava. Addressing the company's annual general meeting on Monday, Bhargava highlighted that the tax overhaul has benefited not only the automobile sector but multiple industries across the economy.

"The Indian economy continues to perform well, with GST collections reaching record levels, despite regional challenges such as the Iran situation and West Asia tensions," Bhargava said. "Without GST reforms, we may not have navigated these difficult months as effectively."

The automotive sector is expected to see substantial growth trajectory in the coming years. Maruti Suzuki projects India's car industry will expand to 6.3 million units by 2031, with the small car segment growing at an accelerated pace compared to the previous five-year period. The company attributed this optimistic outlook partly to GST rate reductions implemented in September of the previous year.

Higher GST collections have signalled continued economic momentum across sectors, suggesting the reform framework is sustaining business activity and consumer spending even amid geopolitical uncertainties. The developments underscore the significance of structural tax reforms in providing economic stability during volatile periods.