Just hours before the new two-slab Goods and Services Tax (GST) system was set to launch at midnight on Sunday, September 21, 2025, Prime Minister Narendra Modi hailed it as a ‘bachat utsav’ or ‘festival of savings.’ He declared it a pivotal first step towards ‘aatmanirbharta,’ signifying India’s journey towards economic self-reliance.
During a national televised address, Prime Minister Modi emphasized the profound implications of streamlining the GST from a four-slab to a two-slab structure. He explained how this simplification, combined with easier compliance and reduced prices, would encourage Indians to prioritize domestically produced goods over foreign imports, thereby significantly bolstering the nation’s Micro, Small, and Medium Enterprises (MSMEs).
He passionately urged citizens, stating, ‘Garv se kaho yeh swadeshi hai aur main swadeshi khareedta aur bechta hoon’ (be proud to declare yourself ‘swadeshi,’ and to buy and sell ‘swadeshi’ goods). The Prime Minister reminded the nation that India’s historical prosperity was built upon its legacy of producing and trading world-class commodities.
This national address by the Prime Minister took place amidst a challenging international trade environment, marked by punitive trade tariffs imposed by the U.S. and a generally uncertain global trade outlook.
Prime Minister Modi characterized these next-generation GST reforms, coupled with an Income Tax exemption for individuals earning up to ₹12 lakh annually, as a significant ‘double bonanza’ for India’s middle and ‘neo-middle’ classes. He projected that these measures would result in household savings of approximately ₹2.5 lakh crore due to reduced goods prices. He underscored this as a reflection of his government’s ‘nagarik devo bhava’ (citizen is akin to God) principle guiding its public policy.
The Prime Minister proclaimed, ‘On the auspicious first day of Navratri, our nation embarks on its initial steps towards ‘aatmanirbharta’.’ He recounted the extensive consultations with stakeholders and State governments that led to the original GST adoption in 2017. He further urged State governments to also champion the encouragement of Indian-made products. Elaborating on the reforms, he detailed how the previous four GST slabs had been simplified to two, bringing many everyday items previously taxed at 12% down to a 5% tax bracket.
A social media post from Press Trust of India shared a video of Prime Minister Modi reiterating that achieving a ‘Viksit Bharat’ (Developed India) necessitates embracing ‘Atmanirbharta’ (self-reliance), placing significant responsibility on MSMEs to contribute to India’s self-sufficiency.
Mr. Modi expressed his satisfaction with the positive reception of the next-generation GST reforms by traders and the MSME sector. He challenged the MSME sector to draw inspiration from India’s past, where its prosperity was founded on manufacturing excellence, and to reclaim its reputation for producing world-class goods.
The Prime Minister also issued a call to action to boost domestic consumption, highlighting his government’s achievement of lifting 25 crore (250 million) people out of poverty over the past 11 years. He reiterated that while the newly tax-exempt middle and neo-middle classes stand to save ₹2.5 lakh crore through these reforms, the overarching vision of a ‘Viksit Bharat’ (developed India) hinges on collective self-reliance. He urged citizens to replace the foreign products that have become common in daily life with indigenous alternatives.
These significant GST regime reforms were initially foreshadowed by Prime Minister Modi during his traditional Independence Day address from New Delhi’s Red Fort. Subsequently, in September, the GST Council officially approved the new two-slab system.
The speech also included a video presentation, showcasing the Prime Minister’s address on these significant changes.