New Delhi: Prime Minister Narendra Modi on Sunday urged citizens to embrace the spirit of Swadeshi by prioritising Made in India products, as the new Goods and Services Tax (GST) reforms come into effect from September 22, 2025, coinciding with the first day of Shardiya Navaratri.
Delivering his national address, Modi described the new tax regime as a “Bachat Utsav” (Festival of Savings) and called upon households and businesses to transform their choices into symbols of self-reliance and national pride.
“We need to make every home a symbol of Swadeshi… every shop should be adorned with Swadeshi products,” the Prime Minister said.
GST Reforms: The “Savings Festival”
PM Modi highlighted that the GST reforms reflect the Union Government’s mantra of “Nagrik Devo Bhava” (citizen is like God), ensuring tangible economic relief for the people.
- Savings for citizens: Combining income tax exemptions and GST reductions, Modi estimated that people will save over ₹2.5 lakh crore annually.
- Simplified structure: The previous four-rate GST system is replaced with a streamlined two-slab regime (5% and 18%), with a 40% slab retained for luxury and sin goods.
- Direct benefit to MSMEs & small industries: Reduced compliance burden, lower tax rates, and eased procedures are expected to boost production and employment.
“This is not just tax reform—it is a festival of savings for every Indian household,” Modi stressed.
Swadeshi for Self-Reliance
Drawing parallels with the freedom struggle, Modi said economic independence today mirrors the role of Swadeshi during independence.
- MSMEs & cottage industries will be the biggest gainers as GST cuts lower costs and expand sales.
- Handloom, textiles, and handicrafts benefit from correction of the inverted duty structure. GST on yarn and fibres has been cut to 5%, helping artisans and weavers.
- Agriculture to automobiles, FMCG to renewable energy — all sectors are expected to benefit from reduced costs and improved competitiveness.
“Just as the country’s independence gained strength from the mantra of Swadeshi, the country’s prosperity will also gain strength from the mantra of Swadeshi alone,” Modi said.
Key Features of New GST Regime (Effective Sept 22, 2025)
| Category | New GST Rate | Earlier GST Rate |
|---|---|---|
| Essential goods & services | 5% | 5–12% |
| Standard goods & services | 18% | 18–28% |
| Luxury & sin goods (tobacco, etc.) | 40% | 40% |
| Man-made fibres & yarn | 5% | 12% |
Impact Expected
- Lower cost of living for households.
- Higher sales for small businesses due to reduced tax burden.
- Boost in domestic manufacturing as imports become less attractive.
- Job creation in MSMEs and cottage industries.
- Tax compliance made easier, widening the tax base.
FAQs on GST Reforms and Swadeshi Appeal
Q1. Why did PM Modi call GST reform a “Bachat Utsav”?
Because combined GST and income tax relief is projected to save Indian citizens more than ₹2.5 lakh crore annually.
Q2. What are the new GST slabs?
Two primary slabs: 5% and 18%, with a 40% slab for luxury/sin goods.
Q3. Who benefits the most from the GST changes?
MSMEs, cottage industries, handloom & handicrafts, and consumers, as compliance is simplified and costs are reduced.
Q4. Why is Swadeshi being emphasised now?
To encourage self-reliance (Atmanirbharta) and strengthen domestic industries, just as Swadeshi once empowered India’s independence movement.
Q5. From when do the new GST rates apply?
The reforms take effect September 22, 2025, the first day of Shardiya Navaratri.
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