Prime Minister Narendra Modi addressed the nation through video conferencing today, extending warm wishes to citizens on the celebration of Navratri, the festival dedicated to worshipping Shakti. He noted that the start of Navratri represents a pivotal advancement in the Aatmanirbhar Bharat campaign.
Beginning at sunrise on September 22, the country will unveil Next Generation GST reforms, leading to the launch of a nationwide GST Bachat Utsav, or Savings Festival. Modi stressed that this initiative will boost savings and facilitate easier access for people to purchase desired goods.
He highlighted that the advantages of this savings festival will reach diverse groups including the poor, middle class, youth, farmers, women, shopkeepers, and entrepreneurs, creating a season of joy and prosperity in households across India. Modi expressed his congratulations and best wishes to millions of families for the implementation of these reforms, stating that they will enhance India’s growth trajectory, simplify business processes, attract investments, and ensure equitable development across states.
Reflecting on the journey of GST reform that began in 2017, Modi emphasized the long-standing complexities faced by citizens and traders due to a tangled web of taxes including Octroi, Entry Tax, Sales Tax, and more. He illustrated these challenges with a poignant anecdote from 2014, highlighting a case where a company opted to ship goods from Bengaluru to Europe and then back to Hyderabad due to difficulties in overland transport.
He indicated that the increasing costs driven by these tax complexities disproportionately affected the poor, ultimately passed on to consumers. Modi affirmed the necessity of simplifying the tax system, recalling that his government made GST a priority after its mandate in 2014. Extensive stakeholder consultations were conducted, addressing every concern, paving the way for this monumental reform.
Modi stressed that the successful collaboration between the Centre and states made it possible to eliminate the convoluted tax system and establish a uniform taxation framework across the country, realizing the dream of “One Nation, One Tax.” He noted that reforms are an ongoing process, emphasizing the need for next-generation reforms to adapt to changing national needs and aspirations.
The Prime Minister pointed out that under the new tax structure, only 5% and 18% tax slabs will remain, making many everyday items more affordable. He specifically mentioned food, medicine, and essential household items that will either be exempt from tax or taxed at the lower rate. Almost all items previously taxed at 12% are now under the 5% tax bracket.
Modi highlighted that in the past eleven years, 250 million Indians have risen out of poverty, forming a significant neo-middle class with its aspirations. The government has offered tax relief by making incomes up to ₹12 lakh tax-free, bringing significant relief to middle-class families. He expressed that this year marks a double benefit for lower-income groups with both income tax relief and reduced GST.
With lower GST rates, fulfilling personal goals like buying a home or a vehicle will become more feasible for citizens. Travel expenses will also decrease due to the lower GST on hotel rooms. He noted the enthusiastic response from shopkeepers who are keen to pass on these savings to customers, with many displaying price comparisons before and after the reforms.
Emphasizing the ‘Nagarik Devobhava’ principle guiding these reforms, Modi stated that combined income tax relief and GST reductions will lead to savings exceeding ₹2.5 lakh crore for the people of India, coining the term “Bachat Utsav” for this opportunity.
He reiterated that achieving a developed India requires steadfast commitment to self-reliance, with significant responsibility resting on micro, small, and cottage industries (MSMEs). Whatever goods can be produced in India should be made domestically, underlining that reduced GST rates will significantly benefit these sectors, boosting sales and lowering tax burdens.
Modi expressed high expectations for MSMEs, characterizing them as the backbone of India’s economy. He urged that products crafted by these consumer-focused industries must adhere to the highest global standards, with an emphasis on quality enhancing India’s global identity.
He referred to the philosophy of Swadeshi, which drove India’s independence movement, suggesting it can similarly inspire the nation’s journey towards prosperity. Modi encouraged people to free themselves from dependency on foreign goods and promote locally manufactured products bearing the essence of Indian labor.
He called for every household to embrace the Swadeshi approach and for shops to feature indigenous products prominently. The Prime Minister invited citizens to proudly affirm their commitment to buying and selling Swadeshi goods, stating that this mindset must resonate deeply within every Indian to accelerate national development.
He requested state governments to energetically support Aatmanirbhar Bharat and Swadeshi campaigns by encouraging local manufacturing and fostering a favorable investment climate. Modi concluded by stating that when the Centre and states collaborate effectively, the vision of a self-reliant India will be realized, leading to comprehensive national development. He extended heartfelt wishes for the GST Bachat Utsav and the auspicious occasion of Navratri.
Original Source: https://www.firstpost.com/india/next-generation-reforms-and-simplified-gst-key-to-indias-development-says-pm-modi-full-speech-ws-e-13935655.html
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Publish Date: 2025-09-21 18:56:00
