'PM Modi trusts industry and revenue will go up': Piyush Goyal in key interview on GST reforms amid tariff turmoil

Union commerce minister Piyush Goyal

In a key interview to CNN-News18, Union Commerce and Industry Minister Piyush Goyal on Thursday said that Prime Minister Narendra Modi trusts industry and revenue will go up. Goyal said that the fundamentals of the economy is strong making sure we only power on and not slip.

He said PM Modi has clearly shown good economics can also be good politics, adding that the market recognizes that we are in safe hands.

"An honest government will always have money to spend like we have by giving relief of Rs 2 lakh crore in one shot via GST reforms," he said in an interview to Network18 Group Editor-in-Chief Rahul Joshi .

The commerce minister said that the GST reforms will give a big leg up to GDP, investments and demand. "Gowing demand will mean more jobs in manufacturing and services. India is poised for a very bright future," he said.

Goyal expressed confidence that the GST reforms starting September 22 will give a big leg up to the economy and the to GDP growth. He said that the reforms will ensure that Indian investments continue to power on. "When there is demand there will be interest to put more investments," he said.

The commerce minister said that the GST reforms is a labour of love which happened after many months of hard work. He further said that steps have been taken in last eleven years which will take India to a $30 trillion economy from $4 trillion by 2047.

Goyal said it is very logical that income tax and GST reforms will spur consumption.

"The reduction in cement from 28% to 18%. It suddenly brings down the cost of real estate and building a home," he said.

Goyal expressed confidence that consumers are in for significant gains due to GST reforms, adding that the industry has committed to us that the full benefit of net of input taxes is passed on to the consumers.

He further said that higher demand leads to more manufacturing and multiplier impact of GST cuts will give India a big boost.

Talking about the revenue, he said with boost in demand, it will "probably go up". "See revenues going up on GST reforms not down. It is hardly a consequential impact on revenues owing to GST reforms," he said.

Goyal noted that fertiliser prices have not gone up in the past eleven years of the Modi government. He also said that cut in health and life insurance premiums from 18% to none is a massive reduction. "The fundamentals of the economy is strong making sure we only power on and not slip," he underscored.