PM Narendra Modi Launches Next Generation GST Reforms for Savings and Self-Reliant India, Full details 2025

PM Narendra Modi launches Next Generation GST Reforms, introducing simplified tax slabs, lower costs on essentials, higher savings for citizens, and stronger support for MSMEs and Made in India products.

PM Narendra Modi Launches Next Generation GST Reforms

On 21 September 2025, Prime Minister Narendra Modi addressed the nation and introduced the Next-Generation GST reforms, set to take effect from 22 September. Calling it the ‘GST Bachat Utsav,’ he highlighted that the new system will lower the cost of essential goods, increase household savings, and give a strong push to Aatmanirbhar Bharat by supporting MSMEs and encouraging local manufacturing.

Key Highlights of PM Modi’s Address on GST Reforms

The Prime Minister called the reforms people-focused and a historic milestone in India’s economic growth.

– New GST Structure: Only 5% and 18% tax slabs will apply.
– Reduced Costs: Essentials like food, medicines, soap, toothpaste, and insurance will have 0% or 5% tax.
– Savings Boost: Citizens may save over ₹2.5 lakh crore yearly with GST and income tax reforms.
– MSME Support: Simplified taxes to benefit small businesses, cottage industries, and entrepreneurs.
– Swadeshi Promotion: Encouragement to buy and sell Made in India products for self-reliance.

The Evolution of GST in India

PM Modi highlighted the 2017 GST reform that replaced complex taxes like Octroi, Entry Tax, VAT, and Service Tax with the concept of ‘One Nation, One Tax.’ He noted that earlier, businesses often exported goods instead of moving them within India due to tax barriers. The new reforms continue this simplification, supporting India’s growth and citizens’ needs.

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Advantages of the Next-Generation GST Reforms

For Citizens:

• Affordable daily essentials and services
• Lower travel and hotel expenses due to reduced GST on hospitality
• Easier access to homes, cars, and other consumer goods

For MSMEs and Small Businesses:

• Reduced tax burden, boosting production and sales
• Increased global competitiveness of Indian products
• Simplified compliance, making business easier

For India’s Economy:

• Enhanced consumer spending power
• Promotion of domestic manufacturing under Aatmanirbhar Bharat
• Greater investment appeal and strengthened cooperative federalism

Promoting Self-Reliance and the Swadeshi Spirit

The Prime Minister stressed that India’s growth depends on self-reliance, and buying Made in India products, like the Swadeshi movement once did, will boost economic independence.
He urged:

Citizens to take the pledge: “I buy Swadeshi, I sell Swadeshi”.
Every household to embrace Swadeshi.
Every shop to showcase local products proudly.

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