As GST cuts become effective, PM Modi writes to people, urges Swadeshi push

Prime minister Narendra Modi on Monday asked Indians to buy and sell local products this festive season and power the national goal of Viksit Bharat by 2047.

As the GST cuts rolled, the PM said the new regime would lead to Rs 2.5 lakh crore as annual savings in the hands of the people to whom he appealed to support the swadeshi push.

"Our nation's GST journey, which began in 2017, was a turning point in freeing our citizens and businesses from the web of multiple taxes. GST united the nation economically. One Nation, One Tax brought uniformity and relief. The GST Council, with the active participation of both the Centre and states, took many pro-people decisions. Now, these new reforms take us further, simplifying the system, reducing rates and putting more savings in the hands of the people," Modi said.

He said small industries, shopkeepers, traders, entrepreneurs and MSMEs will all see greater Ease of Doing Business, Ease of Compliance, lower taxes, lower prices and simpler rules which will mean better sales, less compliance burden and growth of opportunities, especially in the MSME sector.

The PM said the collective national goal was Viksit Bharat by 2047 and to achieve it "walking on the path of self-reliance is imperative".

"These reforms strengthen our local manufacturing base, paving the way towards Aatmanırtihar Bharat. Let us resolve to support products that are Made in India. This means buying swadeshi products that have the sweat and toil of an Indian involved in their making irrespective of the brand or the company that makes them," Modi wrote in a letter he posted on X.

He appealed to shopkeepers and traders to sell products that are Made in India.

"Let us proudly say what we buy is Swadeshi. Let us proudly say what we sell is Swadeshi," the PM said, adding that the new GST regime would have only 5% and 18% slabs.

He said combining income cuts announced in the budget and the next generation GST reforms, "savings of nearly Rs 2.5 lakh crore add up for the people".

"GST reforms will boost savings and directly benefit every section of society, be it farmers, women, youth, poor, middle class, traders or MSMEs. They will encourage greater growth and investments and accelerate the progress of every state and region," the PM noted.

He said daily essentials such as food, medicines, soap, toothpaste, insurance and many more items will now either be tax free or taxed lowest at 5% and goods that were earlier taxed at 12% have almost entirely shifted to 5%.

"It is greatly heartening to see various shopkeepers and traders putting up boards which indicate changes pre reforms and post reforms," the PM said, adding that the lifting of 25 crore people above the poverty line has led to a new aspirational neo-middle class.

"We have also strengthened the hands of our middle class with the massive income tax cuts, which ensure zero tax up to annual income of Rs 12 lakh. Your household expenses will reduce and it will be easier to fulfil aspirations such as building a home, purchasing a vehicle, purchasing appliances, eating out or planning a family vacation," the PM said asking citizens to fully participate in what he termed the "GST Savings festival", as he wished everyone on the first day of Navratri.