PM Narendra Modi Promotes Swadeshi Products as GST Reforms Approach for Aatmanirbhar Bharat

Prime Minister Narendra Modi announced that the GST reforms starting Monday will boost India's growth. He described this as a significant step for "aatmanirbhar Bharat," linking the promotion of local products to national prosperity. Modi urged citizens to support indigenous goods, drawing parallels to their role in India's freedom struggle.

Modi highlighted that the revised GST rates align with his government's principle of "naagrik devo bhawah," treating citizens like gods by reducing everyday costs. He stated, "From tomorrow, it will be like a GST saving festival," bringing joy to families. The changes aim to lower expenses in sectors like construction and healthcare.

GST Reforms and Economic Impact

The Prime Minister emphasised that the new GST structure will simplify taxes, with most goods and services now taxed at 5% or 18%. Everyday items such as food, medicines, and personal care products will either be tax-free or taxed at 5%. Nearly 99% of items previously taxed at 12% are now in the 5% bracket.

Modi noted that these reforms will save citizens Rs 2.5 lakh crore, combining with earlier income tax exemptions for a "double bonanza." This financial relief is expected to help people achieve their dreams by reducing expenses and increasing savings.

Encouraging Indigenous Products

The Prime Minister encouraged states to enhance manufacturing and create an investment-friendly environment. He stressed that cooperation between the Centre and states is crucial for realising a self-reliant India. Modi urged people to take pride in buying and selling made-in-India products, which he believes will accelerate national development.

He also called on micro, small, and cottage industries to play a pivotal role in building a self-reliant India. Modi urged these sectors to restore the glory of made-in-India products, which were once central to the country's economic strength.

Historical Context and Future Prospects

Reflecting on the past, Modi recalled how multiple taxes complicated business operations before GST's introduction in 2017. He shared a story about a company finding it easier to ship goods internationally than within India due to tax complexities. The "one nation one tax" initiative aimed to address these challenges.

The Prime Minister expressed satisfaction with businesses passing GST rate cuts benefits to consumers. He noted that only two main tax slabs remain under the new system: 5% and 18%. Luxury items face a 40% tax, while tobacco products remain at 28% plus cess.

Consumer Benefits and Market Changes

The GST Council's decision to reduce tax rates from September 22 marks the start of Navaratri. This change makes goods like ghee, paneer, butter, namkeen, ketchup, jam, dry fruits, coffee, ice creams, TVs, ACs, and washing machines more affordable. The reform aims to ease consumer burdens and stimulate market activity.

Modi congratulated everyone on the next-generation GST reforms, which he believes will drive India's growth story forward. These changes are expected to improve business ease and attract more investors. The Prime Minister reiterated his commitment to working with stakeholders for successful implementation.

As India embraces these reforms on Navratri's first day, Modi sees it as a significant step towards Atmanirbhar Bharat. With sunrise tomorrow, the next generation of GST reforms takes effect, marking the beginning of a GST bachat utsav or savings festival.

With inputs from PTI