Zoho founder Sridhar Vembu hailed the launch of GST 2.0 while taking aim at U.S. President Donald Trump, who had controversially labelled India and Russia “dead economies” amid tariff strains.
“We will show them what a ‘dead economy’ looks like,” Vembu posted on X. He praised the government’s move, saying, “Cutting taxes to stimulate domestic demand and encouraging investment in domestic production so that demand generates jobs — this is exactly the right mix. We can afford this because our government has been generally prudent.”
Vembu’s sharp comment was a direct response to Trump’s remark, which had drawn widespread criticism in India and abroad. Trump's had labelled both India and Russia dead economies amid the tariff strains.
His remarks echo the wider sentiment in India Inc, which has welcomed the new tax regime as a milestone reform.
On Wednesday, the GST Council approved a sweeping rationalisation of indirect tax rates aimed at easing household burdens and simplifying compliance. From September 22, the framework will operate with just two slabs — 5% and 18% — while a higher 40% rate will apply only to demerit goods like pan masala, cigarettes, carbonated drinks, and other sugar-laden products.
The overhaul is expected to bring down taxes on a wide basket of goods and services. Essentials such as food grains and fertilisers, alongside mass-use categories like footwear, textiles, and renewable energy, will face lower levies. Items previously taxed at 12% and 28% have largely been folded into the two remaining slabs.
Finance Minister Nirmala Sitharaman underlined that several middle-class staples — including televisions, air-conditioners, and two-wheelers below 350cc — have now been rationalised to 18%, a move expected to give a fillip to consumer demand.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
