Post-GST reform boom: Ashwini Vaishnaw sees ₹20 lakh crore more in electronics consumption

Additional electronics consumption worth ₹20 lakh crore is expected this year, driven by GST reforms rolled out last month, Union Electronics and IT Minister Ashwini Vaishnaw said on October 18. 

Vaishnaw cited retail data showing a 20-25% surge in electronics sales compared to last Navaratri, with some categories, like 85-inch TVs, selling out completely. 

"The increase in demand for electronics goods is directly impacting electronics manufacturing. Electronics manufacturing is now growing at a double-digit CAGR. It is very likely that the consumption will increase more than 10 per cent this year, which means, there is a high possibility of Rs 20 lakh crore extra consumption compared to last year," he said. 

Speaking at a joint press briefing with Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal, Vaishnaw also noted that smartphone exports are rising despite global geopolitical tensions and are expected to continue their upward trend. 

Finance Minister Nirmala Sitharaman on Dhanteras said the impact of recent Goods and Services Tax (GST) rate reductions has been “remarkable,” with the benefits being effectively passed on to consumers across key product categories.

Sitharaman said the government has been tracking 54 essential items to ensure that companies and retailers transfer tax savings to end-users. “For every item I have monitored that affects citizens’ daily lives, the weighted average of the reduction is being passed on — and in some cases, even more,” she said.

Separately, the minister called data “the new oil” and described data centres as “the new refineries”, while speaking at another event. He highlighted the government’s focus on expanding digital credit access as part of India’s Digital Public Infrastructure (DPI) initiative. 

Vaishnaw praised India’s rapid 5G rollout, saying it has captured global attention. He also announced that Bengaluru-based startup Sarvam will launch its indigenous AI model by December or January, adding that he’s personally excited to try it. He welcomed Google’s proposed $15 billion AI hub in Visakhapatnam, which he said would bolster AI research in India. 

Emphasising India’s global digital leadership, Vaishnaw pointed out that over 13 countries are already using India’s UPI system, and more than 50 have shown interest in adopting the Aadhaar framework.

(With inputs from PTI)