Prime Minister Narendra Modi on Sunday announced that Indians will collectively save around ₹2.5 lakh crore due to the rollout of GST 2.0 and recent income tax changes. Calling it a “Bachat Utsav” or “savings festival,” he said the reforms will directly benefit the poor, middle class, and the emerging neo middle class.
The revamped GST regime reduces four slabs to two simplified rates of 5% and 18%. Everyday essentials including medicines, household goods, and appliances will now attract lower taxes, while 99% of items earlier under the 12% category have been shifted to 5%. Modi said this would make essentials cheaper and spur demand across sectors such as automobiles, consumer goods, retail, and e-commerce.
He stressed that small businesses and MSMEs will gain a “double benefit” through higher sales and lower taxes, making them more competitive in both domestic and global markets. Modi also urged entrepreneurs to focus on global quality standards, while encouraging consumers to prefer Indian-made goods to strengthen the country’s self-reliance.
Highlighting India’s progress since the first GST reform in 2017, Modi said the new tax structure would make business easier, stimulate investment, and help people achieve aspirations such as buying a house, vehicle, or household appliances. The announcement comes just ahead of the festive season, aligning with rising consumer demand.
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