New Delhi, Sep 4 (PTI) India's exports during the current financial year would be higher than 2024-24, said Union Minister Piyush Goyal on Thursday, while asserting the government is working at a fast pace for diversification of outbound shipments.

The commerce and industry minister also said the industry has committed to pass on the benefits of the GST rate reduction to consumers.

"This has been a very special year for consumers," he said while referring to the Income Tax benefits effected through the Union Budget and GST reforms announced on Wednesday evening.

Talking to reporters here, the minister said the reforms announced on the GST front will have multiplier impact on the economy and help in keeping inflation at low levels.

"Industry has committed they will pass on the benefits of GST rate reduction to consumers," Goyal said, adding he has spoken to industry associations and large corporates.

The minister further said reduction in prices also benefits industry as it leads to higher demand which in turn boosts manufacturing activities.

Asserting that India's exports will be higher this fiscal compared to 2024-25, Goyal said the government is working at a fast pace to diversify exports, both in terms of markets as well as products.

The 50 per cent tariff on Indian goods imposed by the US has created challenges for the domestic exports.

India's goods and services exports crossed USD 820 billion in 2024-25, marking a nearly 6 per cent increase over the previous fiscal year despite global economic uncertainties. The exports stood at USD 778 billion in 2023-24.

When asked how GST rate cut would help exports, Goyal said it will help all sections of industry.

"Those exporters who have been affected by any action, by a third country, will also get a chance to try and capture bigger Indian market and continue their business uninterrupted. So I think it's a win win for all," he said.

To a query regarding diversification of export markets in the wake of challenges posed by US tariffs, Goyal said the government is already making efforts to promote new markets and new products going out form India.

He said India is exploring the UAE market for export of shrimp and sea food.

Also, "Singapore has assured us to buy eggs and chicken from India. I've asked them to also examine fish and they tell me that they love the taste of Indian fish", Goyal said.

Meanwhile, the commerce ministry said industry bodies have welcomed the GST reforms, emphasising that measures such as faster tax refunds for exporters, provisional relief under the inverted duty structure, and rationalisation of rates across key sectors will ease liquidity pressures, reduce working capital blockages, and strengthen supply chains.

These steps are expected to boost manufacturing, support MSMEs, enhance export competitiveness, and ensure cost benefits are passed on to consumer.

The ministry further said that the key takeaways from GST rationalisation for exporters include lower costs and global competitiveness; boost to MSMEs and export-oriented sectors; efficient supply chains and logistics; support for innovation and new products; and sustainable and structured growth.

"The rationalisation of GST is expected to lower input costs for MSMEs and exporters, reduce inflationary pressures on consumers, and correct structural anomalies such as inverted duty structures," the ministry said.

Commerce Secretary Sunil Barthwal described rationalisation of GST rates as a decisive step in strengthening India's manufacturing base, empowering MSMEs, and enhancing the competitiveness of Indian goods in domestic and international markets.

He said the reform reinforces the vision of building an Atmanirbhar Bharat while delivering concrete benefits to producers, traders, and exporters across the country. PTI NKD MJH HVA

GST rate rationalisation expected to lower input costs and boost export competitiveness, aiding MSMEs and manufacturing growth. GST rate rationalisation aims to reduce input costs, accelerate tax refunds for exporters, and provide provisional relief under inverted duty structures to ease liquidity pressures, strengthen supply chains, and enable producers and traders to pass on cost benefits to consumers. Complementary export diversification efforts focus on opening new markets and products to mitigate the impact of third country tariffs and enhance the global competitiveness of Indian goods.