India, Sept. 22 -- India's economy could see a major fiscal stimulus of over Rs.2.5 lakh crore due to the impact of the recently implemented GST 2.0 reforms, coupled with the income tax relief announced in the Union Budget 2025, Chief Economic Advisor (CEA) V Anantha Nageswaran said on Monday.

Speaking at the Network18 Reforms Reloaded 2025 summit in New Delhi, the CEA said that the combined impact of direct tax relief through income tax cuts and indirect tax relief through GST rate reductions will be over Rs.2.5 lakh crore.

He, however, added that some other uncertainties may dilute the effect.

The CEA highlighted the sweeping scope of these changes, calling GST 2.0 a "landmark reform" that is expected to significantly boost domestic ...