Prime Minister Narendra Modi on Thursday said that his government’s next-generation goods and service tax (GST) reforms have drastically reduced the tax burden on the poor as well as the middle class.
Addressing the inauguration event of the Uttar Pradesh International Trade Show 2025 in Uttar Pradesh’s Greater Noida, the Prime Minister said the structural reforms in GST are set to give new wings to India’s growth story.
Affirming that India stands firmly with its industries, traders, and citizens, driven by the commitment to reform, perform and transform, Modi highlighted that just three days ago, next-generation GST reforms were implemented, describing them as “structural changes that will propel India’s growth story”.
Comparing taxes under the UPA government, the Prime Minister said, “Before 2014, the multitude of taxes made it difficult to manage both business costs and household budgets. A shirt priced at Rs 1,000 attracted nearly Rs 170 in taxes before 2014. After the introduction of GST in 2017, this dropped to Rs 50. With the revised rates effective from September 22, the same Rs 1,000 shirt now incurs only Rs 35 in tax.”
The Prime Minister further stressed that GST reforms would continue moving forward. "We are not going to stop here... As the economy strengthens further, the tax burden will keep going down... With countrymen's blessings, reforms in GST will continue," the Prime Minister said.
He also highlighted the measures taken by the government, including no income tax on individuals earning up to Rs 12 lakh annually and the GST 2.0 reforms, and stated that these initiatives will result in more savings in the hands of the people.
Modi further said the country is developing a vibrant defence sector, creating an ecosystem where every component bears the mark of 'Made in India.' Production of the AK-203 rifles will soon begin in a factory set up in Uttar Pradesh, in collaboration with Russia, he said.
Modi emphasised that India must become self-reliant and called for increasing investment in research and innovation. Every product that can be made in India should be made in India, said the Prime Minister.
Inviting global investments, Modi said, despite geopolitical disruptions and uncertainty, India's growth remains attractive.
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