Zoho’s Sridhar Vembu Champions GST 2.0 Reform, Fires Back at Trump’s ‘Dead Economy’ Remark

Zoho’s Sridhar Vembu Champions GST 2.0 Reform, Fires Back at Trump’s ‘Dead Economy’ Remark

In a bold and spirited response to U.S. President Donald Trump’s controversial label of India and Russia as “dead economies” amid trade tensions, Zoho founder Sridhar Vembu has thrown his support behind India's newly launched GST 2.0 reform. Vembu’s remarks resonate with a growing sentiment in India’s business community that the country is poised for a robust economic revival.

GST 2.0: Simplifying Taxation, Boosting Growth

The Goods and Services Tax (GST) Council recently approved a sweeping overhaul of India’s indirect tax system, slated to take effect from September 22, 2025. The reform notably simplifies the tax structure to just two main slabs — a 5% rate and an 18% rate — with a higher 40% rate reserved only for demerit goods such as pan masala, cigarettes, and sugary sodas.

This rationalisation aims to lower tax burdens on essential and commonly used products, including food grains, fertilisers, textiles, footwear, and renewable energy products. Many items that were previously taxed at different rates, like 12% and 28%, will now fall under the streamlined slabs, making compliance easier for businesses and less costly for consumers.

Economic Impact and Business Sentiment

Vembu praised the government’s approach to GST 2.0, highlighting the combination of cutting taxes to stimulate domestic demand while encouraging investment in domestic production to generate jobs. He emphasized that India’s relatively prudent government finances allow it to afford such reforms, which are expected to ignite consumer spending and domestic growth.

Finance Minister Nirmala Sitharaman underscored the potential positive impact on the middle class by rationalizing GST on critical consumer staples such as televisions, air conditioners, and two-wheelers below 350cc, which now attract an 18% tax rate. This is anticipated to drive demand in these sectors and contribute to a wider economic uplift.

A Defiant Message to Critics

Vembu’s rallying cry on social media, “We will show them what a ‘dead economy’ looks like,” responds directly to Trump’s disparaging comments. His confidence reflects the broader Indian corporate world’s optimism about the nation’s economic trajectory under the new tax regime and beyond.

Conclusion

India’s GST 2.0 represents a landmark milestone in tax reform aimed at boosting domestic demand, simplifying the tax system, and fostering economic growth. With influential leaders like Sridhar Vembu endorsing the overhaul, India's business ecosystem is poised to demonstrate resilience and vitality on the global stage.