Below are the key points from Finance Minister Nirmala Sitharaman’s exclusive interview with Rahul Joshi, Group Editor-in-Chief of Network18, conducted on September 5, 2025, as reported by News18 and other sources. The interview focused on the recent GST reforms, global trade challenges, and India’s financial policies.

Key Points from the Interview

GST Reforms (GST 2.0):Origin of Reforms: Sitharaman revealed that Prime Minister Narendra Modi initiated discussions on GST reforms eight months prior, emphasizing simpler tax rates and processes to ease the burden on the common man. Modi reiterated this during his Independence Day address from the Red Fort.

New GST Structure: The GST Council, chaired by Sitharaman, approved a streamlined two-slab structure (5% and 18%), replacing the previous four slabs (5%, 12%, 18%, 28%). A special 40% slab was introduced for luxury and sin goods (e.g., tobacco, luxury cars, sugary drinks). These changes are effective from September 22, 2025.

Focus on Common Man: The reforms aim to reduce taxes on daily essentials like ghee, butter, roti, shampoo, hair oil, and toothpaste, benefiting consumers and small businesses. Small cars and motorcycles (up to 350cc) now fall under the 18% slab, down from 28%.

Consumer and Business Benefits: The simplified slabs and reduced compliance burdens are designed to put more money in citizens’ pockets and provide businesses with flexibility to grow. Sitharaman emphasized that citizen relief is prioritized over immediate revenue concerns.

State Revenue Concerns: While some states expressed worries about potential revenue losses, Sitharaman assured that the Centre and states share the impact equally, and the government will explore ways to mobilize revenue without burdening citizens.

Compensation Cess: For the first time, the Centre proposed a comprehensive plan for handling compensation cess, with the Minister of State for Finance chairing discussions. The proposal adhered to all GST Council rules

Response to US Tariffs:Exporters’ Relief: Sitharaman addressed the impact of US tariffs (up to 50% on Indian imports) imposed by President Donald Trump, stating that the government is working to ease the burden on exporters. The GST reforms are designed to offset input costs, narrowing the gap caused by higher tariffs.

Trade Strategy: While import cost increases due to tariffs are outside the GST Council’s purview, the government will not leave exporters “high and dry” and is committed to providing relief.

India-China Trade Relations:

Market Access Priority: Sitharaman emphasized that India’s key focus in trade talks with China is securing market access. She noted that significant work remains, including discussions on market barriers and non-tariff barriers.

Atmanirbhar Bharat (Self-Reliant India):

Sitharaman clarified that the objective of Atmanirbhar Bharat is not just about domestic production but also about fostering self-respect in the face of uncertain global trade policies. The initiative aims to strengthen India’s economic resilience.

Response to Opposition Criticism:

Sitharaman refuted claims by Congress leaders, including Rahul Gandhi, that the GST reforms were prompted by their proposals. She accused the previous Congress-led government of imposing “humongous” tax rates that hurt businesses and consumers, contrasting it with the Modi government’s focus on the common man’s aspirations.

Citizen Welfare: Sitharaman stressed that the government prioritizes citizen welfare, even if it means borrowing or adjusting fiscal plans. The Centre is willing to take on exclusive responsibilities like defense spending to ensure public relief.

Future of GST:

Sitharaman outlined the evolution of GST: the first phase focused on unity, the second on simplicity, and a potential third phase may be explored in the future to further refine the system.

Other Economic Measures:

• Rooftop Solar Boost: The GST reduction will significantly benefit the rooftop solar segment, supporting the PM Surya Ghar Muft Bijli Yojana, which aims to provide up to 300 units of free electricity to one crore families, saving them up to ₹18,000 annually.

The interview highlighted the Modi government’s commitment to simplifying the GST system, easing the tax burden on citizens, and addressing global trade challenges like US tariffs. Sitharaman emphasized that these reforms were driven by PM Modi’s vision for a Viksit Bharat (Developed India) and were not a reaction to opposition pressure. The GST overhaul is expected to boost consumption by ₹0.7–1 lakh crore, stimulate demand, and ease inflationary pressures.