On Sunday, Indian Prime Minister Narendra Modi strongly advocated for the use of locally-produced goods and announced that upcoming GST reforms will boost India’s economic growth, enhance business ease, and attract more investors.
The new GST system will feature only two rates: 5% and 18%. This updated Goods and Services Tax structure was unveiled earlier this month and takes effect from Monday, September 22, 2025.
Modi highlighted that 99% of items currently sold in India will now fall under the 5% GST bracket, aiming to benefit the middle class and lower-income groups.
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In his national address on the eve of the reduced GST rates, Modi announced the launch of a ‘GST Bachat Utsav (savings festival)’ beginning with Navratri, alongside income tax exemptions, offering a “double bonanza” for many Indians.
Modi emphasized that all states will be equal participants in the development race and urged citizens to switch from foreign-made to local products, advocating for self-reliance amid strained trade relations with the United States.
“Many of the products we use daily are foreign-made, often without our realization… we need to eliminate them,” Modi emphasized.
“We should purchase products made in India,” he added, without specifying any particular country.
