GST Reforms Fuel ₹20 Lakh Crore Boost in Electronics Consumption, Vaishnaw Says

India’s electronics market could see an extra ₹20 lakh crore in consumption this year, driven by GST reforms rolled out last month, Union Electronics and IT Minister Ashwini Vaishnaw said on October 18.

He cited retail data showing a 20-25% jump in electronics sales versus last Navaratri, with categories such as 85-inch TVs selling out completely. He added that the spike in demand for electronics goods is feeding directly into manufacturing, and electronics manufacturing is now growing at a double-digit CAGR, making it very likely that overall consumption will rise more than 10% this year, implying a high possibility of ₹20 lakh crore extra consumption compared with last year.

Vaishnaw, speaking at a joint press briefing with Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal, noted that smartphone exports are rising despite global geopolitical tensions and are expected to continue their upward trend. On Dhanteras, Sitharaman described the impact of GST cuts as remarkable, with the benefits being passed on to consumers across key product categories.

She said the government has been tracking 54 essential items to ensure that tax savings reach end-users, and that for every item where she monitors daily life, the weighted average of the reduction is being passed on — and in some cases, even more. Separately, a government minister described data as the new oil and called data centres the new refineries, while speaking at another event, highlighting the government’s focus on expanding digital infrastructure.