Post‑GST in Trump Times: Ten Reforms I Believe India Must Embrace
I write this as someone who watches policy with a mix of hope and impatience. Hope, because the NextGen GST decisions were a political and administrative feat; impatience, because laws alone do not translate into lived gains unless we follow with a sequence of hard, sometimes unpopular reforms. The signals are clear: the GST Council has moved, the Prime Minister has celebrated the reforms, and the Government is betting on consumption and competitiveness to carry growth forward Recommendations of the 56th Meeting of the GST Council ; Prime Minister hails NextGen GST reforms.
But the world beyond our borders is noisy and dangerous for open trade. The new era of large tariffs and geopolitical unpredictability—summed up for many as "Trump times"—means domestic reforms cannot wait. I read that view echoed in commentary across the press: from nuanced takes on GST’s limits "Trump tariffs: GST cuts help but India must raise its game" to analyses of export pain after US tariff shocks Engineering exporters' warnings and probes of the GST 2.0 strategy GST 2.0: As Modi govt bets on consumption.
Below are ten reforms I believe are now essential. Each is practical, but together they form an agenda that is strategic and moral: to protect livelihoods, keep markets open, and make India genuinely competitive.
1) Make GST simpler and fairer — fewer rates, clearer rules
GST’s promise was simplification. The NextGen menu is progress, but we must relentlessly pursue a flatter, more predictable structure that reduces disputes and compliance costs for small firms. Simplification is not just economic hygiene; it is a trust‑building exercise between the state and the taxpayer Recommendations of the 56th Meeting of the GST Council.
2) Ensure GST benefits flow to consumers and spur demand
Tax cuts are only meaningful when retail prices fall and consumers feel the relief. Our leaders have urged traders and firms to pass on benefits — this must be enforced through transparency and competition policy, otherwise the demand stimulus will leak away GST benefits must be passed on to consumers: Goyal; FM bets on GST cuts to spark ‘Revenge Buying’.
3) Target MSME relief and untangle compliance burdens
Our MSMEs are the shock absorbers of the economy. To withstand external tariffs and demand shocks, MSMEs need simplified compliance, credit windows, faster dispute resolution and scaled digital tools. The GST narrative must be compatible with a decisive MSME support package PIB on GST reforms and MSMEs.
4) Strengthen export insurance, incentives and market diversification
When large markets raise tariffs, exporters need immediate cash‑flow relief and insurance against sudden demand collapses. We must expand export credit, fast‑track refunds, and be aggressive in diversifying trade partners via FTAs and CEPA negotiations India‑EU & FTA talks coverage; Framework for FTA with Qatar.
5) Double down on industrial competitiveness — energy, input costs, design‑led manufacturing
GST alone cannot carry Make‑in‑India. We need lower power tariffs for manufacturing clusters, easier land access, and incentives for R&D and design (not only capacity). The logic must be to move up the value chain, reducing exposure to commodity tariff wars that hit simple goods hardest Make in India / PLI context in PIB and market coverage.
6) Invest in logistics, ports and trade infrastructure now
Tariffs amplify the value of logistics efficiency. Faster ports, bonded warehousing, and better multimodal corridors cut costs and response times—turning an export shock into a tactical opportunity if we can redeploy supply chains quickly PM GatiShakti and network planning references.
7) Protect strategic supply chains with smart industrial policy, not isolation
The temptation under trade pressure is to retaliate or to close borders. I favour pragmatic hedging: identify strategic inputs (pharma, semiconductors, critical minerals) and create sovereign capabilities through targeted incentives and public‑private partnerships rather than blanket protectionism Semicon India and critical mineral policies cited in PIB releases.
8) Strengthen social protection and retraining — the human answer to trade shocks
Economic shocks are ultimately human tragedies. Robust unemployment support, reskilling programs, and portable benefits will keep the social fabric intact when sectors adjust. This is not charity; it’s smart risk management for a rapidly changing world policy discussions in national press and PIB’s employment initiatives.
9) Use digital public infrastructure to reduce costs and increase trust
From faster GST refunds, to account aggregators, to Aadhaar‑linked verification that eases KYC — our digital stack can lower transaction costs dramatically. NextGen GST must be accompanied by UI/UX that reduces compliance time for the smallest trader Account Aggregator celebration and DPI mentions.
10) Make trade diplomacy relentless and honest
We need negotiators who can both push for rules‑based trade and be nimble in regional deals. Domestic reforms will not insulate us if trade wars escalate; diplomacy buys time and markets Jaishankar’s call about fair economic practice amid tariffs.
These ten reforms are not a wish‑list; they are a sequence. Simplify taxes, then fix compliance; protect incomes, then raise competitiveness; build factories, then build skills. Newspapers and commentators are rightly pointing to the interplay between GST policy and the external environment — and they are right to worry about the limits of a tax cut if supply‑side weaknesses aren’t addressed Mint analysis; Financial Express coverage; India Today insight [https://www.financialexpress.com/policy/economy-fm-bets-on-gst-cuts-to-spark-revenge-buying-wave-eyes-rs-48000-crore-boost-3970271/?ref=economy_hp] [https://www.indiatoday.in/india-today-insight/story/gst-20-as-narendra-modi-govt-bets-on-consumption-to-power-growth-mind-the-bumps-too-2783948-2025-09-08].
If there is a philosophical through‑line to this list it is modest: policy is an exercise in creating optionality. GST reforms gave us breathing space — now we must convert that space into capability. In a world of tariffs and unpredictable geopolitics, the most moral position is the most resilient one: to protect livelihoods, keep markets open, and raise the productivity of every Indian firm, from the village artisan to the listed exporter.
Regards,
Hemen Parekh
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