PM Modi: GST Reforms Promise Rs 2.5 Lakh Crore Annual Savings for Citizens
PM Modi's game-changing tax reforms promise massive savings.
Prime Minister Narendra Modi addressed the nation on September 21, 2025, on the eve of Navratri, unveiling transformative GST reforms that reduce the existing four tax slabs to just two, effective September 22. These changes are poised to lower prices for a wide range of products, offering significant relief to Indian consumers.
In his speech, Mr. Modi emphasized the ethos of "Nagarik Devo Bhava" (Citizens are Divine), highlighting how these reforms reflect a citizen-centric approach aimed at fostering economic growth and easing financial burdens. The announcement comes at a time of strained India-US relations, with recent US tariffs and visa fee hikes adding pressure, though the US clarified the $100,000 H-1B visa fee applies only to new petitions.
Mr. Modi revealed that the combined impact of recent Income Tax and GST reforms is expected to save Indian citizens a staggering Rs 2.5 lakh crore annually. This financial relief is set to benefit households across the country, particularly the middle class and the poor, by making essential goods more affordable. The Prime Minister underscored that 99% of items commonly used by the middle class have been made cheaper under the GST 2.0 framework, a move that aligns with his vision of inclusive economic progress.
The Prime Minister also championed the concept of Atmanirbhar Bharat (Self-Reliant India), urging Micro, Small, and Medium Enterprises (MSMEs) to seize the opportunities presented by these reforms. He highlighted that the simplified tax structure will make business operations smoother, attract investments, and boost competitiveness, positioning MSMEs as key drivers of a developed India. Mr. Modi emphasized that these reforms will not only benefit individual businesses but also support all states in their pursuit of development, creating a ripple effect across the economy.
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Reflecting on his government’s achievements, Mr. Modi noted that approximately 25 crore people have been lifted out of poverty over the past 11 years, a testament to his administration’s focus on inclusive growth. The revised income tax slab, with no tax liability up to Rs 12 lakh per annum, was hailed as a major boon for the middle class, freeing up disposable income and stimulating consumption.
The GST 2.0 reforms are designed to streamline taxation, reduce compliance burdens, and make India a more attractive destination for investment. Mr. Modi described these changes as a catalyst for India’s growth story, ensuring that businesses can thrive and citizens can enjoy a higher standard of living. As India navigates global economic challenges, these reforms signal a bold step toward self-reliance and prosperity.
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