New Delhi: The Modi government has unveiled key economic reforms aimed at shaping the roadmap for a developed India by 2047. As part of these measures, the Goods and Services Tax (GST) structure has been simplified, reducing the existing four tax slabs to just two—5% and 18%. The revised rates will be implemented across all goods before Diwali, a move the Prime Minister said would double the festive cheer for citizens.
Prime Minister Narendra Modi emphasized that the reforms are designed to benefit every section of society, particularly the poor, middle class, women, students, farmers, and youth. He highlighted that unlike the Congress regime, which had imposed steep taxes—including 21% on children’s chocolates—the current government has worked to ease the burden on the people.
#WATCH | Delhi | On #GSTReforms, PM Narendra Modi says, "Another benefit for the youth is going to be in the fitness sector. Tax has been reduced on services like gym, salon, yoga, which means our youth will be fit as well as hit."
(Source: DD News) pic.twitter.com/ASK5cxHUZ5
— ANI (@ANI) September 4, 2025
Outlining what he termed the “five gems” of the new economic reforms, Modi said the initiatives are aimed at steering the nation towards self-reliance, affordable healthcare for all, and sustained economic growth. He asserted that the reduction in GST rates will directly lower the prices of essential commodities and consumer products, making festivals like Diwali and Dhanteras more vibrant this year.
Calling it one of the most significant economic reforms in independent India, the Prime Minister described the GST overhaul as a “double leap” for national development and a step closer to realizing the dream of Atmanirbhar Bharat.