New Delhi: Prime Minister Narendra Modi on Sunday evening addressed the nation, announcing the launch of next-generation GST reforms, which he described as a “savings festival” coinciding with the first day of Navratri. The rollout of GST 2.0, effective tomorrow, is being positioned by the government as a transformative economic step that will simplify taxation, boost consumption, and strengthen India’s growth momentum.
Extending greetings for Navratri, the Prime Minister said the country is set to celebrate not just the festival of Shakti but also a new chapter of financial empowerment. “Tomorrow, the festival to worship Shakti begins, and alongside it, a GST savings festival for the people of Bharat. Your savings will increase, and you can buy your favourite items easily,” he declared. Modi called the moment a “double bonanza” for citizens, combining the benefits of earlier income tax relief with the new GST reforms, which he claimed would save the public nearly ₹2.5 lakh crore annually.
The most significant change under GST 2.0 is the reduction of tax slabs from four to two. The 12% and 28% categories have been scrapped, leaving only 5% and 18% slabs, with exceptions for luxury and so-called “sin goods” like tobacco and high-end vehicles. Daily essentials including ghee, coffee, biscuits, and cooking oil will now be cheaper. Car prices are set to drop, and premiums on health insurance policies will also come down, a move expected to fuel demand during the festive season.
Revisiting the historic 2017 introduction of GST, which unified more than a dozen indirect taxes into a single nationwide framework, Modi reminded the nation of the long struggle to simplify India’s tax regime. “For decades, our people were trapped in a web of taxes. In 2017, we made GST a reality after extensive consultations with states. Today, with GST 2.0, we are taking that vision forward,” he said. He stressed that reform is not a one-time event but a continuous process that must evolve with changing times and needs.
The Prime Minister praised the collaborative spirit between the Centre and the states in implementing GST reforms, noting that every state would be “an equal partner in the nation’s development.” He urged state governments to embrace manufacturing with renewed vigour and to create investor-friendly environments to drive the Atmanirbhar Bharat campaign. “Let every home become a Swadeshi home, every shop display Swadeshi products, and every Indian say with pride: I buy Swadeshi, I sell Swadeshi,” he added, linking the reforms to his government’s broader nationalist economic vision.
Modi asserted that GST 2.0 would accelerate India’s growth story, ease the process of doing business, and attract fresh investment at a time when global companies are seeking reliable markets. By simplifying the tax structure and reducing costs for households, the reforms aim to expand consumption, thereby driving demand for industry and trade.
The announcement was not merely about economics. By aligning the GST rollout with Navratri, Modi framed the reforms in cultural as well as financial terms, presenting them as a gift to ordinary Indians at the start of a festive season. The messaging underscores the government’s attempt to connect fiscal policy with everyday aspirations of the poor, the middle class, and traders alike.