Union Finance Minister Nirmala Sitharaman announced that the next generation of Goods and Services Tax (GST) reforms will usher in an era of transparency and openness, significantly reducing compliance burdens and empowering small businesses across India. Speaking at the 120th Foundation Day celebrations of Tamil Nadu’s City Union Bank, with President Droupadi Murmu as the chief guest, Sitharaman outlined a transformative vision for India’s economic landscape.

The minister highlighted the upcoming GST Council meeting, scheduled for September 3 and 4, which will roll out these reforms to simplify regulations and create a more enabling ecosystem for startups, Micro, Small, and Medium Enterprises (MSMEs), and entrepreneurs. “The next generation GST reforms will set an economy absolutely open and transparent in the coming months, making it easier for small businesses to thrive,” Sitharaman declared, echoing Prime Minister Narendra Modi’s recent Independence Day promise of a “Diwali bonanza” through big-ticket GST changes.

Sitharaman emphasized that these reforms align with Modi’s announcement of a dedicated Task Force to streamline regulations and lower compliance costs. This initiative aims to bolster India’s journey toward Viksit Bharat 2047, a vision for a developed India by 2047. She urged banks to play a pivotal role in this transformation by expanding credit, supporting infrastructure development, and providing timely funding to MSMEs. “The guiding principles for this transformation must be trust, technology, and transparency,” she said, underscoring the need to integrate the unbanked into formal banking systems and meet diverse economic needs.

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Reflecting on India’s financial progress, Sitharaman noted that over the past 11 years, 56 crore Jan Dhan accounts have been opened, with deposits totaling Rs 2.68 lakh crore. Notably, a majority of these account holders are women, marking a significant step toward financial inclusion. She also highlighted the remarkable improvement in the asset quality of Indian scheduled commercial banks, citing a rare upgrade in India’s long-term sovereign credit rating by S&P, the first in 18 years.

As India gears up for these sweeping GST reforms, Sitharaman’s address signals a bold commitment to fostering an entrepreneur-friendly ecosystem, driving economic growth, and positioning India as a global economic powerhouse by 2047.

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