Prime Minister Narendra Modi on Sunday described the sweeping changes to the Goods and Services Tax (GST) as a “next generation reform” that will ease household budgets, empower small businesses and strengthen India’s march towards Atmanirbhar Bharat.
In his address to the nation, Modi announced the launch of “GST Bachat Utsav” (Festival of Savings), effective from September 22, under which GST slabs have been simplified and many essential goods moved to a lower bracket. The Prime Minister called it a symbolic “Navratri gift” to the people of India, one that combines economic relief with the spirit of national renewal.
Recalling the situation before his government came to power, Modi said India’s taxation system was riddled with inefficiencies. “Before 2014, our tax system was complicated and discouraging for businesses. People were forced to pay multiple taxes at every step. In 2017, we introduced GST to bring in ‘One Nation, One Tax.’ Today, that reform is moving to its next stage,” he said.
“The new GST is not merely about tax rates. It is a festival of savings for families and a next generation reform for the nation’s economy,” Modi said. Under the revised structure, the earlier multi-slab system will be streamlined to mainly 5% and 18%, a change he said would make goods cheaper and compliance easier for traders.
Modi also pointed out that his government had taken steps to ease the burden on the middle class through direct tax reforms. “Today, there is no income tax on annual earnings up to Rs 12 lakh. This has given great relief to crores of families. Along with GST savings, this is putting more money in the hands of our citizens,” he noted.
Linking the reform with his larger vision of Atmanirbhar Bharat, Modi urged citizens to embrace Swadeshi products and support local businesses. “Every rupee saved and every Swadeshi product purchased strengthens our resolve for self-reliance,” he said, reinforcing the government’s call for “vocal for local.”
He highlighted that the reform would especially benefit farmers, MSMEs, and small traders, while also making India’s business environment more attractive for investors. Modi said indigenous manufacturing — “from chip to ship” — must become India’s foundation, spanning defence, energy, technology and everyday consumer goods.
The Prime Minister underscored that reforms must be seen as a continuous journey, not one-time fixes. He said the GST revamp was part of broader efforts to simplify regulations, reduce costs and create a stronger base for India’s long-term growth.
The speech also came a day after the United States announced a steep hike in H-1B visa fees, raising concerns for Indian professionals. Without directly mentioning the issue, Modi said reforms like the GST overhaul would help generate more opportunities within India, reducing overdependence on foreign economies.
Concluding his address, Modi said the reform was both a practical relief and a symbolic step: a festival of savings for citizens, and a bold stride towards a self-reliant, globally confident India.