PM Modi Credits Tax Reforms for Record Festive Season Sales
GST and income tax reductions drive record-breaking festive season growth.
At the NDTV World Summit 2025, Prime Minister Narendra Modi celebrated the transformative impact of recent Goods and Services Tax (GST) and income tax cuts, crediting them for fueling an unprecedented surge in festive season sales across India. Speaking on October 17, 2025, Modi announced that these tax reforms are projected to save the nation at least Rs 2.5 lakh crore, empowering businesses and consumers alike during the festive period.
The GST Council, led by Finance Minister Nirmala Sitharaman, made headlines in September at its 56th meeting by slashing GST rates on a wide array of everyday goods and services. Rates on numerous commonly used products dropped from 18% and 12% to a uniform 5%, with a special 40% tax slab reserved for "sin goods" like cigarettes and sweetened aerated drinks. This bold move has significantly reduced costs for consumers, driving record-breaking sales for companies and retailers during the festive season, a critical period for India’s economy.
Reflecting on India’s economic journey over the past 11 years, Modi emphasized the nation’s resilience and growth, stating, “India has extinguished every doubt, conquered every challenge.” He highlighted the country’s robust recovery post-Covid-19, noting an average growth rate of 7.8% over the last three years, even amidst global conflicts. Modi also pointed to recent data showing a 7% increase in merchandise exports, underscoring India’s rising economic prowess.
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The Prime Minister spotlighted India’s dominance in digital payments, declaring, “Today, 50% of the world’s digital transactions happen in India. Our Unified Payments Interface (UPI) leads global digital payments.” This achievement, he argued, reflects India’s ability to surpass global expectations and establish itself as a technological and economic powerhouse.
Modi also celebrated India’s shift from being among the “fragile five” to one of the world’s top five economies, a transformation driven by a decade of reforms. He cited S&P’s recent credit rating upgrade—the first in 17 years—as a milestone that has attracted significant foreign investment, particularly in green energy and semiconductor sectors. “India has become a magnet for investments,” Modi proclaimed, highlighting the country’s growing appeal to global investors.
Addressing global economic concerns, Modi indirectly referenced trade tensions, including former US President Donald Trump’s proposed 50% tariffs on Indian goods, which have sparked debates about India’s trade policies. However, Modi remained focused on domestic achievements, emphasizing how tax cuts have empowered small businesses and boosted consumer spending, particularly during the festive season when demand for goods like electronics, clothing, and household items traditionally spikes.
The Prime Minister’s address painted a picture of an optimistic, forward-moving India, undeterred by global challenges. He credited the government’s proactive policies for fostering economic stability and growth, positioning India as a leader in innovation and investment. As the festive season continues, the impact of these tax cuts is expected to further stimulate economic activity, reinforcing Modi’s vision of a self-reliant and thriving India.
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