PM Modi Recalls 2014 Article on India’s Trade Hurdles, Links It to GST Reforms
PM Modi recalls a 2014 Financial Times article on India’s trade challenges while announcing GST 2.0, calling it a “festival of savings” for citizens.
“Prime Minister Narendra Modi recalls a 2014 Financial Times article on India’s trade hurdles while announcing GST 2.0 reforms.”
Prime Minister Narendra Modi, in his address today, emphasized the transformative role of Goods and Services Tax (GST) reforms, describing them as a nationwide “GST Bachat Utsav” that will benefit farmers, traders, entrepreneurs, and ordinary citizens alike.
During his speech, PM Modi reached back to the early days of his tenure in 2014, citing a Financial Times column that had examined the complex trade practices prevailing in India at the time. The article, authored by veteran correspondent Victor Mallet, highlighted how companies struggled with tax hurdles and logistics inefficiencies within the country.
One striking example from the piece described how a French technology firm reportedly found it cheaper to ship components from Bengaluru to Europe and then back to Hyderabad—thousands of kilometers of travel—instead of transporting them the 570 km directly overland.
“Friends, this was the situation then,” PM Modi remarked. “Due to the maze of state taxes, tolls, and barriers, millions of companies and countless citizens faced daily hardships. The increased cost of moving goods was ultimately borne by ordinary people.”
The 2014 article also noted how clogged roads, limited freight rail, and multiple state-level levies drove logistics costs for Indian manufacturers higher than those faced by global competitors. According to World Bank estimates cited in the column, cutting delays from roadblocks could reduce logistics costs by up to 40 percent.
At the time, experts suggested a nationwide general sales tax as the solution—an idea that materialized in 2017 when PM Modi’s government rolled out GST, marking one of India’s most significant economic reforms.
GST 2.0: A “Festival of Savings”
Looking ahead, PM Modi announced that from September 22, coinciding with the start of Navratri, a new phase of GST reforms—dubbed “GST 2.0”—will take effect.
“From tomorrow, buying your favorite items will become easier. This is like a GST saving festival for every Indian,” he said, adding that the reforms will provide “double benefits” to the poor and the growing middle class through lower prices and simplified trade.
Framing the reforms as a “festival of savings,” the Prime Minister reiterated his government’s commitment to reducing burdens on businesses and consumers alike.
