Sitharaman says GST 2.0 has triggered private investment, India's consumption story intact

Union Finance Minister Nirmala Sitharaman on November 2 said India's consumption story remained intact, with the demand recovery following the rollout of next-generation Goods and Services Tax (GST) reforms beginning to translate into private sector investment. She also underlined the need for a stronger skilling push to bridge the gap between industry requirements and the capabilities of young people entering the workforce, particularly as businesses increasingly adopt artificial intelligence (AI). Speaking at the Financial Express Leadership Awards in Mumbai, Sitharaman said she was seeing companies come forward to invest, although they were being selective about the sectors in which they were deploying capital.

"I am seeing industry come out and invest," she said, adding that the improvement in consumption and demand following GST 2.0 had become visible. She said this had given companies greater confidence about domestic demand and triggered investment activity. The finance minister said the recovery in consumption was reflected in the latest GST figures and cautioned against overstating the implications of the numbers. "I still think India's consumption story will be intact," she said, adding that the government was closely watching the indicators. Sitharaman also pointed to imports of raw materials by companies engaged in exports as evidence of economic activity.