CII Forecasts 6.4-6.7% GDP Growth for FY26, Advocates for Simplified 3-Tier GST
New Delhi, India – The Confederation of Indian Industry (CII) is projecting a robust 6.4-6.7% growth for India’s Gross Domestic Product (GDP) in the upcoming financial year (FY26). This optimistic outlook is primarily fueled by strong domestic demand, though the newly appointed CII President, Rajiv Memani, acknowledged that global geopolitical uncertainties could pose downside risks.
In his inaugural press conference, Memani also made a compelling case for a streamlined three-tiered Goods and Services Tax (GST) structure. He proposed:
- 5% for essential items
- 28% for luxury and “sin” goods
- A 12-18% bracket for all other goods and services
This proposed structure aims to simplify the current four-tier GST system, which presently includes slabs at 5%, 12%, 18%, and 28%. Under the existing framework, luxury and demerit goods are taxed at the highest 28% rate, while essential items like packed food fall under the lowest 5% slab.