GST Reforms 2025: 10 Stocks Experts Believe Can Benefit From PM Modi’s Announcement
PM Modi’s Independence Day announcement on GST reforms is expected to boost consumption and benefit multiple sectors. Market experts recommend 10 stocks — from Tata Motors and BEL to TVS Motor and Sun Pharma — that could gain from these structural changes.
GST Reforms and Market Sentiment
Prime Minister Narendra Modi, in his Independence Day 2025 speech, highlighted the government’s focus on next-generation GST reforms. He confirmed that the Group of Ministers (GoM) on Rate Rationalisation will meet in early September to deliberate on changes that could reshape India’s tax structure.
The proposed reforms aim to simplify GST slabs, making the system more consumer-friendly and growth-oriented. Reports suggest that the government may:
- Remove the 12% and 28% slabs, retaining only 5% and 18%.
- Introduce a 40% “sin tax” on items like tobacco and gutka.
- Bring down GST rates on essential consumer goods such as soaps, shampoos, white goods, and appliances.
Analysts believe these changes could improve affordability for the middle class and boost demand across consumption-oriented sectors, supporting India’s vision of Atmanirbhar Bharat.
Expert Take: How Reforms Could Impact Markets
“GST is essentially a consumption tax. If slabs are simplified and consumer goods become cheaper, it can lead to a strong demand revival. With PM Modi hinting at reform implementation by Diwali 2025, sectors like autos, FMCG, real estate, and electronics stand to benefit significantly,” said Anuj Gupta, Director at Ya Wealth.
Seema Srivastava, Senior Research Analyst at SMC Global Securities, added that these reforms could act as a “structural catalyst” for India’s long-term growth story while boosting corporate earnings in consumption-heavy industries.
10 Stocks to Watch After GST Reforms
Based on expert recommendations, here are 10 stocks that could benefit from the upcoming GST reforms:
- Tata Motors – Lower GST on vehicles could boost auto sales, especially in EV and passenger car segments.
- DLF Ltd – Real estate may see higher housing demand if construction materials become cheaper.
- Godrej Properties – A beneficiary of lower input costs and improving housing affordability.
- Dixon Technologies – Consumer electronics demand could rise if white goods see GST cuts.
- Sun Pharma – Healthcare affordability reforms can support pharma companies.
- UPL Ltd – Lower rates on agro-chemicals may aid farmer demand and improve margins.
- Bharat Electronics (BEL) – Expected to gain from continued government focus on defence and manufacturing incentives.
- TVS Motor Company – Two-wheeler affordability could improve, driving rural demand.
- Coromandel International – Fertiliser demand may rise as input costs ease under rationalised GST.
- Godrej Agrovet – Likely to benefit from tax cuts on agro-products and improved rural consumption.
Market Impact: Who Gains the Most?
- Autos and FMCG: Likely to be the biggest winners due to direct impact on consumer affordability.
- Real Estate: Lower construction material costs could spur housing demand.
- Agro & Fertilisers: Beneficial for rural demand and farm income support.
- Pharma & Healthcare: Indirect gains through affordability and policy push.
Future Outlook: What Investors Should Expect
If the GST Council approves these proposals in September, the reforms may be implemented in phases, with rollouts starting before Diwali 2025. Market sentiment suggests that:
- Consumption-driven sectors could see a short-term rally.
- Earnings upgrades are likely in autos, FMCG, and real estate.
- Long-term, GST rationalisation will enhance India’s position as a simplified, competitive economy, attracting both domestic and foreign investors.
Experts, however, caution against chasing stocks after sudden rallies. Instead, they advise accumulating quality names on dips, especially those directly linked to consumption demand.
PM Modi’s push for structural GST reforms has the potential to be a game-changer for India’s economy. With simplification of tax slabs and consumer-centric measures, sectors like autos, FMCG, real estate, and agrochemicals may witness strong demand tailwinds.
For investors, the recommended stocks — from Tata Motors and BEL to TVS Motor and Coromandel International — could offer multi-year growth opportunities as the GST reform story unfolds.
