Consumption, Production, Investment, Jobs: Minister On GST Reforms' Impact

Union Minister Ashwini Vaishnaw said the GST reforms, set to come into effect on September 22, will set off a "virtuous cycle" of consumption, production, investment and employment.

He added that PM Modi has always maintained that the mindset holds paramount importance. Mr Vaishnaw said that the PM has a forward-looking, problem-solving approach. "He (PM Modi) is an intent listener and very detail-oriented," he said.

The GST reforms will have two major impacts, one of which is that the cost of living will substantially decrease, affecting everything from food to clothing to electronics. "The second big thing is, we are today a Rs 330 lakh crore economy. Our consumption is Rs 202 lakh crore, and Rs 98 lakh crore is investment. Now, this Rs 200 lakh crore consumption will significantly grow. Even if it grows by 10 per cent, that would mean adding Rs 20 lakh crore to the economy. That much more production will have to be done, that much more investment will be required. That is the virtuous cycle which will start and lift the economy in a big way," he told NDTV.

On Prime Minister Narendra Modi's 75th birthday, Mr Vaishnaw recalled his advice about thinking 20 years ahead to aid the country's rapid development. Talking about sectors like telecom, semiconductor, space, Artificial Intelligence, defence manufacturing and quantum, among others.

"We should have a complete ecosystem of these technologies and a very deep talent pipeline. That's what our Prime Minister has always focused on. When we took the semiconductor program to him, he said we must not only manufacture chip. We should also manufacture the machines that are used to make chips. We should also manufacture the materials that are used to make chips. So that's a very comprehensive ecosystem view that he gave us," he said.

Further lauding PM Modi's vision and clarity of thought, he advised that if India aims to become a developed nation by 2047, it is essential to lay the foundation correctly and continue to build upon it.

Talking about railways, a portfolio he holds, Mr Vaishnaw addressed how under PM Modi, he has addressed aspects like accessibility, affordability and safety. "He said that the mandate is clear that the common citizen should be at the forefront. "When we say we have to bring new technology, that means the common citizen must have a better travel experience. New technology should also mean a better safety track record. This has helped us in making sure that the change that we make is felt by the common citizens," he said.