"Prioritise Manufacturing, Atmosphere For Investment": PM Modi's Message For States

Prime Minister Narendra Modi announced on Sunday that the Goods and Services Tax (GST) reforms, taking effect tomorrow, represent a "double bonanza" for the poor, neo-middle class, and middle class segments of Indian society.

These next-generation reforms, according to the Prime Minister, will enhance India's growth trajectory, improve the ease of doing business, attract greater investments, and ensure equitable development participation across all states.

"Next generation GST reforms being implemented tomorrow create a 'GST saving festival'... Starting tomorrow, purchasing your favorite items will become easier. This essentially functions as a GST saving festival for every Indian citizen," PM Modi stated.

India initially implemented GST in 2017, consolidating more than a dozen state-level taxes under the unifying principle of "one nation, one tax, one market." This was considered the most significant tax reform since independence. The original structure included four tax slabs: 5%, 12%, 18%, and 28%. Certain items like cigarettes, luxury automobiles, and high-end motorcycles carried an additional levy beyond the 28% rate. However, the system faced criticism for its complexity.

Earlier this month, the GST Council streamlined the structure from four tiers to primarily two—5% and 18%—with special provisions remaining for luxury and "sin" goods.

During his address, the Prime Minister emphasized that these reforms exemplify the collaborative relationship between the central government and states.

PM Modi highlighted that all states will be equal participants in India's development journey and encouraged them to accelerate manufacturing initiatives aligned with the 'Atmanirbhar Bharat' (self-reliant India) vision and swadeshi (domestically produced) campaigns.

"I urge all state governments to actively support the Aatmanirbhar Bharat initiative and the Swadeshi program by boosting manufacturing activities within their territories. Focus on creating investment-friendly environments. When states and the central government collaborate effectively, the vision of Aatmanirbhar Bharat will become reality," PM Modi remarked.

He drew parallels between India's independence movement strengthened by the Swadeshi movement and how India's future prosperity will be empowered by embracing indigenous production, encouraging citizens to take pride in buying and selling locally made goods.

The Prime Minister also highlighted that the GST reforms would significantly benefit Micro, Small, and Medium Enterprises (MSMEs).

"I have tremendous expectations from MSMEs. During India's peak prosperity periods, MSMEs formed its foundation. We must reclaim that status. Our product quality should make India proud. Embracing swadeshi will enhance our prosperity," stated PM Modi.

"We should prioritize made-in-India products. Every household and business should represent swadeshi principles. When this happens, India will advance," he concluded.