GST Reforms 2.0: Full List of Sectors and Stocks That Could Benefit From PM Modi’s Diwali Promise
The Goods and Services Tax (GST) in India is on the verge of a major revamp, and this reform could impact both consumers and investors. Prime Minister Narendra Modi has hinted at a Diwali announcement that may simplify the GST structure and make essential goods and services cheaper. Analysts are already calling this move GST Reforms 2.0.
In this blog, let’s understand what these reforms mean, how they will affect retail prices, and which sectors and stocks stand to gain the most.
🧾 What Is Changing in GST Reforms 2.0?
Currently, India follows a four-slab GST structure: 5%, 12%, 18%, and 28%. Under the proposed reforms, this will be collapsed into two main slabs—5% and 18% (excluding sin and luxury goods).
Nearly 99% of items in the 12% slab may shift down to 5%.
Around 90% of items in the 28% slab may move down to 18%.
This means everyday items, cars, consumer durables, and services could soon become more affordable.
📉 Economic Impact of GST Rate Cuts
According to experts:
Retail Prices: Could drop by 4–5%, directly boosting consumer demand.
Tax Revenue: Estimated loss of around ₹50,000 crore, but analysts believe it is manageable due to expected higher consumption.
Inflation Relief: CPI inflation may reduce by 50–60 basis points, giving relief to households already burdened by rising costs.
Overall, GST Reforms 2.0 are expected to give a big push to consumption, manufacturing, and retail sectors.
📊 Sector-Wise Impact and Beneficiaries
🚗 Auto Sector
The automobile industry is one of the biggest beneficiaries. If GST on small cars, two-wheelers, and commercial vehicles falls from 28% to 18%, vehicle prices could drop by 7–10%.
Stocks to watch: Maruti Suzuki, Bajaj Auto, Hero MotoCorp, TVS Motors, Eicher Motors, Tata Motors, Ashok Leyland, Mahindra & Mahindra, Escorts.
🏗️ Cement & Real Estate
Cement GST may drop from 28% to 18%. This could cut cement prices by 7.5–8%, directly benefiting the construction and housing sector.
Stocks to watch: UltraTech Cement, JK Cement, Shree Cement.
Indirect boost: Real estate companies may gain from lower input costs, improving margins by 40–50 basis points.
❄️ Consumer Durables
Products like air conditioners, refrigerators, and other appliances could shift to 18% GST, making them cheaper.
Stocks to watch: Voltas, Blue Star, Amber Enterprises, Havells, Whirlpool.
🧴 FMCG & Ayurveda
Items like ayurveda and herbal products may move from 12% to 5%. This benefits both companies and consumers.
Stocks to watch: Dabur, Emami, Patanjali Foods, ITC.
🏦 Banking & Financial Services
With more disposable income in households, credit growth is likely to improve.
Stocks to watch: ICICI Bank, HDFC Bank, IDFC First Bank, Bajaj Finance.
🛍️ Retail & Apparel
Affordable GST on clothing and footwear will give a boost to organized retail and apparel players.
Stocks to watch: Relaxo, Bata, Metro Brands, Trent, Shoppers Stop.
🏨 Hospitality & Others
Hotels, restaurants, and tourism-related businesses are also expected to benefit.
Stocks to watch: Lemon Tree Hotels, Indian Hotels, Chalet Hotels, Titan, Delhivery, Swiggy (if listed).
🎯 What It Means for Consumers and Investors
For consumers, GST Reforms 2.0 mean cheaper cars, affordable insurance, lower FMCG costs, and reduced household budgets. For investors, this is an opportunity to track sectors like auto, cement, FMCG, durables, and retail, which may see stronger earnings growth after Diwali.
📌 Conclusion
The proposed GST Reforms 2.0 are more than just tax rate changes—they represent a consumption-driven growth strategy for India. By simplifying slabs and reducing rates, the government aims to put more money in people’s hands and support long-term economic stability.
👉 Whether you are a consumer looking forward to lower prices or an investor watching key stocks, this Diwali may bring big changes.
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