PM Modi hints at more GST relief, says reforms will continue as economy strengthens

Prime Minister Narendra Modi on Thursday, September 25, signalled that Goods and Services Tax (GST) reforms would remain an ongoing process, saying the government intends to keep reducing the tax burden as the economy expands. Speaking at the inauguration of the Uttar Pradesh International Trade Show, he said the latest round of changes had already brought significant savings for households and businesses. According to details shared by the Prime Minister’s Office, PM Modi described the new measures implemented on September 22 as the “next generation of GST reforms”, adding that India was celebrating a “GST savings festival” worth an estimated Rs 2.5 lakh crore this year.

GST cuts and impact on households

PM Modi highlighted how indirect taxes on essential goods have declined since 2014. He said a Rs 1,000 shirt that attracted Rs 170 in taxes before 2014 was reduced to Rs 50 after GST was introduced in 2017, and has now come down further to Rs 35.

Similarly, items such as toothpaste and shampoo, which once carried a 31 per cent tax burden, now attract 5 per cent GST. He argued that this shift has lowered the cost of living and freed up disposable income.

The Prime Minister claimed that under the new structure, families that would have paid around Rs 25,000 annually in indirect taxes before 2014 are now paying as little as Rs 5,000 to Rs 6,000 for the same basket of goods.

Attack on opposition parties

PM Modi accused the Congress and its allies of “misleading” citizens about tax reforms. He said that prior to 2014, multiple levies and corruption had increased the burden on ordinary people. “In those years, citizens were burdened by taxes. Today, our government has reduced levies, curbed inflation and increased both income and savings,” he said, noting that income tax exemption limits have expanded from Rs 2 lakh before 2014 to Rs 12 lakh today.

Push for self-reliance and quality manufacturing

The Prime Minister urged Indian industry to adopt business models aligned with the Aatmanirbhar Bharat vision. He called for world-class quality standards in domestic manufacturing, warning that compromise on quality would undermine consumer trust.

He said the government had removed more than 40,000 compliance requirements and decriminalised minor business offences, but stressed that manufacturers must take responsibility for improving standards.

Uttar Pradesh as investment destination

PM Modi underlined Uttar Pradesh’s growing role in India’s manufacturing economy, noting that the state now produces 55 per cent of the country’s mobile phones. He said new projects in semiconductors and defence manufacturing, including the AK-203 rifle plant with Russian collaboration and the Defence Corridor, would strengthen self-reliance.

He also pointed to the state’s expanding expressway network, multiple international airports and freight corridors as factors reducing logistics costs. “Investing in India, and in UP, is a win–win situation,” he told global and domestic investors present at the event.

Reforms and stability as growth drivers

Emphasising India’s “strong willpower for reform”, PM Modi said democratic stability, policy predictability and a young skilled workforce made the country one of the most attractive investment destinations. “With people’s blessings, the sequence of GST reforms will continue. As the economy grows, the tax burden will reduce further,” he said.