On the eve of Navaratri, Prime Minister Narendra Modi delivered a special address to the nation, describing the simultaneous introduction of GST 2.0 and recent income tax reforms as a "double bonanza" for the citizens of India, particularly benefiting the poor, the neo-middle class, and the middle class. He framed these reforms as the start of a “Bachat Utsav,” or festival of savings, which he said would not only ease financial burdens on households but also fuel the country’s economic momentum and strengthen its path toward development.
Highlighting the income tax reforms, the Prime Minister recalled that the government had exempted annual income up to Rs 12 lakh from taxation this year. According to him, this measure has already transformed the lives of countless middle-class families by bringing greater convenience, financial relief, and simplicity into their daily lives. With the additional reduction in GST rates under GST 2.0, Modi said, ordinary citizens will now find it easier to save money, achieve their aspirations, and pursue their dreams with renewed confidence and security.
He further underscored that India has witnessed an extraordinary social transformation over the past eleven years, during which nearly 25 crore people have successfully risen above poverty. This group, now recognized as the neo-middle class, has become a significant force in the nation, carrying forward its own ambitions, goals, and expectations. Modi noted that these reforms are particularly tailored to empower this section of society, helping them secure their future and expand their opportunities.
The government estimates that the combined benefits of reduced GST and income tax relief could save Indian households more than Rs 2.5 lakh crore in just one year. Modi explained that these measures reflect more than financial incentives; they embody the government’s guiding philosophy of “Nagrik Devo Bhava,” which places citizens at the heart of governance and policy.
Speaking on the broader economic implications, the Prime Minister said GST 2.0 has been designed to simplify India’s tax regime, dismantle complexities, and promote a transparent and equitable marketplace. By streamlining business processes and making India more investor-friendly, the reforms are expected to attract fresh investments, generate opportunities, and strengthen the foundations of inclusive growth.
In his closing remarks, Modi positioned GST 2.0 not just as a fiscal reform but as a unifying milestone for the country. He emphasized that the reforms will accelerate India’s growth story, ensure that every state shares equally in development, and enable the nation to move forward with collective strength, making India’s economic future brighter and more inclusive.
