India's economic trajectory has undergone a remarkable transformation, moving from being considered one of the "Fragile Five" economies to currently ranking among the top five globally. Union Minister Piyush Goyal has consistently highlighted this shift, attributing it to the strategic and consistent reforms implemented under Prime Minister Narendra Modi's leadership.
Goyal has emphasized that the Prime Minister has systematically uplifted the economy from a "broken, fragile-5 economy" to its current prominent position. He credited this ascent to consistent reforms that have improved lives across all societal strata. This progress is reflected in India's strong macroeconomic fundamentals, including high foreign exchange reserves, a resilient banking system, and historically low inflation levels.
A key component of this economic resurgence, according to Goyal, is the Goods and Services Tax (GST). On September 3, 2025, the GST Council approved a significant overhaul of India's indirect tax system, streamlining the existing four-slab structure into two primary rates of 5% and 18%, with an additional 40% slab for sin and luxury goods. Goyal hailed this reform as the “largest transformational reform this country has seen in the last six or seven decades,”. He expressed confidence that the impact of these GST reforms would provide a substantial boost to the economy, spur growth, and power Indian investments. The reform is expected to take effect from September 22.
Economists and market observers anticipate that the simplification of the GST structure will boost compliance, reduce litigation, and enhance consumer confidence. The introduction of a special 40% slab for items like tobacco, aerated drinks, pan masala, and luxury cars aims to balance revenue needs while ensuring lower taxes on mass consumption goods. Analysts also expect the rationalized GST regime to provide relief to MSMEs, labor-intensive industries, and the middle class, while creating a more predictable environment for businesses.
Goyal has also pointed to India's resilience during the COVID-19 pandemic, during which it maintained its status as the fastest-growing large economy for four consecutive years. He has stated that India is on track to achieve its goal of becoming a $5 trillion economy by 2027 and the world's third-largest economy. Despite global economic uncertainties and geopolitical tensions, Goyal believes that this is India's moment to seize opportunities and claim its rightful place among the world's leading nations.
India is also positioning itself as a leader in emerging technologies such as artificial intelligence, quantum computing, and 3D printing, with a focus on innovation-led exports. The government is collaborating with industry bodies like NASSCOM to build AI skills among the youth, emphasizing the creation of new employment opportunities.
Furthermore, India has been actively pursuing Free Trade Agreements (FTAs) with advanced economies like the UK, Australia, and the EU. Goyal has stated that these FTAs offer immense opportunities for Indian MSMEs and exporters. These agreements are expected to further solidify India's global trade relations and attract record levels of foreign direct investment (FDI).
