Prime Minister Narendra Modi on Sunday described the upcoming changes to the Goods and Services Tax (GST) as a “next-generation reform” aimed at boosting the Indian economy, increasing consumption, and providing tangible relief to the middle class, youth, and consumers nationwide.
Addressing the nation at 5 PM, Modi said the revised GST rates, set to come into effect from Monday, 22 September, go beyond mere tax cuts. He referred to the change as a “GST saving festival”, highlighting its potential to reduce the cost of daily necessities and stimulate demand-driven growth.
“This reform is not only about reducing prices but about creating new opportunities. The savings of our middle class will increase, our youth will benefit, and the entire economy will gain momentum,” the Prime Minister stated.
He underscored the broader impact of the reform on the country’s long-term growth trajectory and its push towards self-reliance.
“When the purchasing power of people rises, it benefits every sector, from industry to agriculture to services. This is a reform that will touch every household,” he added.
The rate cuts, previously announced by Finance Minister Nirmala Sitharaman, apply to a wide range of goods, including automobiles, household appliances, and consumer products. This is the most significant revision to India’s indirect tax system since the GST was first introduced in July 2017.
The timing of Modi’s announcement also comes amid rising concerns following US President Donald Trump’s decision to sharply increase H-1B visa fees to $100,000, a move expected to heavily impact Indian IT professionals and tech companies.
Earlier on Sunday, the Congress party had raised questions over whether Modi would address Trump’s visa policy, recent comments on India-Pakistan relations, and the concerns of lakhs of Indian visa holders. However, the Prime Minister’s address remained focused on outlining the economic benefits of the GST reforms and the government’s vision for inclusive growth.
