GST Reforms to Strengthen Economy and Benefit the Common Man: Dharmendra Pradhan

At the “Convention 2.0 Forum–2025” organised by the Sambalpur Chamber of Commerce, Union Education Minister and Sambalpur MP Dharmendra Pradhan described the GST Reforms 2.0 as a historic and transformative initiative by the Central Government. He highlighted how these reforms will strengthen the economy from the grassroots to the national level while making essential goods more affordable for citizens.

Key Highlights of GST Reforms 2.0

1. Simplification of Tax Procedures

Pradhan emphasised that the decisions of the 56th GST Council meeting have brought unprecedented transformation in India’s tax structure. The reforms are aimed at making GST simpler, more transparent, and business-friendly, ensuring ease of compliance for businesses of all sizes.

2. Journey of GST: “One Nation, One Tax”

He traced the journey of GST since its introduction in 2017, recalling that it faced initial criticism but later emerged as a unifying tax system under the principle of “One Nation, One Tax.” This has helped streamline indirect taxes and create a common national market.

3. Boost to Key Sectors and Middle-Class Benefits

The GST 2.0 reforms will accelerate growth in key economic sectors and directly benefit:

Middle-class families through cheaper essential goods.

Farmers and MSMEs, reducing their cost burden.

Women and youths, by promoting new opportunities and lowering household expenses.

India’s Growing Economic Strength

Pradhan underlined India’s rising global stature with impressive economic milestones:

India has overtaken Germany to become the world’s fourth-largest economy with a GDP of $4.2 trillion.

Within the next 2–3 years, India is expected to become a $7 trillion economy and the third-largest globally.

Record Growth Indicators

Exports: Up 77%, from $466 billion in 2013–14 to $824.9 billion today.

Investors: Increased from 4.9 crore in 2019 to 13.2 crore in five years.

FDI inflows: Doubled from $36 billion to $81 billion.

GST collections: Jumped from ₹11 lakh crore in 2020 to ₹22 lakh crore today, with an average monthly collection of ₹2 lakh crore.

Sector-Specific GST Concessions

Pradhan highlighted major GST rate reductions aimed at easing the financial burden on different sectors:

Kendu leaves: GST reduced from 18% to 5%, benefiting over 15 lakh workers in this sector.

Yarn: GST cut from 12% to 5%, giving a boost to Odisha’s weavers.

Agricultural machinery and fertiliser inputs: Lower GST to support farmers.

Health and life insurance services, medicines, and educational supplies: Exemptions to reduce expenses for households and students.

These reforms will control inflation, promote a circular economy, and boost India’s overall growth.

Focus on Odisha’s Development

Pradhan also highlighted Odisha’s record rice production and stressed the need to create a global market for the state’s agricultural products.

He proposed making Sambalpur a hub for the “new-age economy”, promoting local products such as:

Sambalpuri sarees

Textiles

Agro-goods

under a strong Sambalpuri brand, to boost local employment and exports.

Presence of Key Leaders

The event was also attended by Panchayati Raj and Drinking Water Minister Rabi Narayan Naik and Sambalpur MLA Jaynarayan Mishra, reflecting the collective effort of both state and central leadership to drive economic growth.

Conclusion

The GST Reforms 2.0 announced by the Centre mark a significant turning point in India’s economic journey. By simplifying tax procedures, reducing GST rates on essential goods, and supporting key sectors, the reforms are set to lower costs for citizens, empower farmers and small businesses, and accelerate India’s path to becoming a $7 trillion economy. Odisha, with its rich agricultural and textile heritage, stands to gain immensely, positioning itself as a key contributor to India’s growth story.