Income Tax, GST Cuts to Save ₹2.5 Lakh Crore; PM Modi Urges Citizens to Support ‘Swadeshi’ Products

On the eve of GST 2.0 reforms, Prime Minister Narendra Modi addressed the nation, calling the initiative a “GST saving festival” that will mark the beginning of a new economic era. Coinciding with the start of Navratri, the Prime Minister said the reforms, along with higher income tax exemptions, will offer a “double bonanza” to Indian households.

🎙️ Key Highlights from PM Modi’s Address

• GST 2.0 rollout from September 22: A simplified structure of 5% and 18% tax slabs will replace the earlier four-tier system.
• Savings boost: Together, the GST rate cuts and the new income tax exemption up to ₹12 lakh are expected to save people nearly ₹2.5 lakh crore.
• Middle-class relief: Modi emphasized that the reforms will benefit the middle class, neo-middle class, women, farmers, and traders, making this festive season more affordable.
• Swadeshi push: He urged citizens to take pride in using indigenous products, linking the reforms to the larger goal of Atmanirbhar Bharat (self-reliant India).
• Equal growth opportunity: Stressing “one nation, one tax,” Modi said the reforms will create a fair and level playing field for all states while enhancing ease of doing business.
• Historical context: Modi recalled that when GST was first introduced in 2017, it transformed India’s tax system, replacing decades of complexity and interstate barriers.

📊 ‘A Sweetened Festival for Every Family’

Calling the reform a “Bachat Utsav” (savings festival), the Prime Minister said:

• “Decisions to raise the income tax exemption limit and cut GST rates will leave more money in the hands of people. This will sweeten the festivals for every Indian family.”
• He further noted that 25 crore people have already moved out of poverty, forming a growing neo-middle class with rising aspirations that these reforms aim to support.

🕰️ Timing and Significance

The announcement comes just ahead of Navratri, when the revised GST rates take effect. Prices of essentials, consumer goods, medicines, automobiles, and services are set to fall, giving both urban and rural households more purchasing power.

PM Modi has historically used such national addresses for significant policy announcements — from demonetisation in 2016, to anti-satellite missile tests in 2019, to updates during the COVID-19 crisis in 2020, and the rollback of farm laws in 2021.

With this latest reform, the Prime Minister positioned GST 2.0 as a landmark step in India’s economic journey, one that promises greater savings, growth, and self-reliance.