PM Modi says Next-Gen GST reforms cut tax on a ₹1,000 shirt to ₹35 from ₹117 in 2014, easing burden on people and boosting India’s growth story. [Photo: Reuters]
PM Narendra Modi said that the government’s Next-Gen GST reforms have simplified company operations and lessened the tax burden on the citizens. During his speech at the Uttar Pradesh International Trade Show 2025, he emphasized how tax reforms have benefitted small business owners, households, and India's economic development.
PM Modi compared India’s tax system before and after GST. He said the previous UPA government had a complicated tax structure.
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“Before 2014, there were so many taxes that neither businesses nor families could balance their budgets. In 2014, a ₹1,000 shirt carried a tax of ₹117. After the implementation of GST in 2017, the tax came down to ₹50. Now, after the NextGen GST reform, only ₹35 will have to be paid on a ₹1,000 shirt,” the prime minister said. He added that GST has brought transparency and fairness.
PM Modi said GST reforms have given direct benefits to poor and middle-class families. Lower tax rates have reduced household spending. Small traders now face fewer compliance hurdles and enjoy a level playing field with larger companies.
He also stressed that reforms will continue. “We are not going to stop here... As the economy strengthens further, the tax burden will keep going down... With countrymen's blessings, reforms in GST will continue," he said.
PM Modi reminded that individuals earning up to ₹12 lakh annually now pay no income tax. He said the government’s GST 2.0 reforms will further increase savings for families. These steps, according to Modi, create confidence and encourage consumption, which strengthens the economy.
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PM Modi also spoke about India’s growing defence sector. He said production of AK-203 rifles will soon begin in Uttar Pradesh with support from Russia. This marks another step towards self-reliance in defence.
He urged for higher investment in research and innovation. “Every product that can be made in India should be made in India,” he said, underlining the government’s vision of ‘Atmanirbhar Bharat’.
Despite global disruptions, PM Modi said India remains a bright spot for investors. He invited global businesses to invest in India’s expanding manufacturing and research ecosystem.
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India is reducing the burden on households and increasing the competitiveness of its products internationally by lowering taxes on necessities. Reduced taxes boost demand, enhance pricing, and give Indian companies the confidence to enter international markets.
The Next-Gen GST reforms, PM Modi noted, are not just about domestic relief. They present India as a desirable location for trade and industry in a changing global economy.
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