Prime Minister Modi's advice to states: increase manufacturing and be investment-friendly


Prime Minister Narendra Modi, in a national address on the eve of Navratri, urged all state governments to take stronger steps toward advancing India’s growth and self-reliance by boosting manufacturing, creating a more business-friendly environment, and actively promoting local products. Framing this as central to the vision of Aatmanirbhar Bharat, he called on states to channel their energy and enthusiasm into building environments conducive to investment and job creation.

The Prime Minister’s appeal coincided with the rollout of next-generation GST reforms and the start of the “GST Bachat Utsav,” which he described as a “double bonanza” for ordinary citizens, particularly the poor, middle class, neo-middle class, farmers, women, youth, and traders. According to Modi, the festival of Navratri, beginning September 22, will symbolise not only a spiritual renewal but also a new phase in India’s economic journey, marked by simplified taxation and improved opportunities for households and businesses alike.

He reflected on the challenges of India’s pre-GST tax regime, where a maze of levies—entry tax, sales tax, excise, VAT—complicated commerce and forced traders to pass through multiple checkpoints to move goods from one city to another. The Prime Minister underscored that the new reforms represent the culmination of extensive consultation with all stakeholders, including states, to address concerns and find practical solutions. “It was the combined effort of central and state governments that freed the nation from the web of dozens of taxes,” he said, stressing the cooperative federalism underpinning the reforms.

Earlier this month, the GST Council approved a major simplification of the tax structure, reducing the existing four tiers to just two—5% and 18%—while retaining higher rates for luxury and sin goods. Modi said this streamlining is aimed at easing compliance, encouraging economic activity, and reducing the burden on consumers and small businesses.

Positioning the reforms as transformative, he asserted that GST 2.0 would not only make taxation easier but also strengthen India’s growth trajectory by enhancing ease of doing business, attracting investments, and ensuring that every state stands as an equal partner in the country’s development journey. “These reforms will accelerate Bharat’s growth story and empower states equally in the race for progress,” he concluded.


 

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