NEW DELHI: Prime Minister Narendra Modi on Thursday highlighted how the government’s next-generation GST reforms are reducing the tax burden on the poor and middle class while improving ease of doing business.

 

Speaking at the opening of the Uttar Pradesh International Trade Show 2025, PM Modi emphasized that structural changes in the GST system will “give new wings to India’s growth story.” He recalled that GST was first implemented in 2017 as a major step to strengthen the economy, followed by further reforms introduced this September.

 

Comparing tax rates with the previous UPA government, the Prime Minister said that before 2014, high taxes made it difficult for both businesses and households to manage finances. “In 2014, a ₹1,000 shirt carried a tax of ₹117. After GST was introduced in 2017, that amount dropped to ₹50. With the NextGen GST reforms, it will now be just ₹35 on the same ₹1,000 shirt,” he noted.

 

Modi underlined that these reforms are ongoing, with the goal of creating a simpler, fairer, and growth-oriented taxation system. He said the reduced GST rates have benefited households and small traders, ensuring a level playing field, curbing tax evasion, and improving transparency. “We are not stopping here. As the economy grows, the tax burden will continue to fall. With citizens’ support, GST reforms will keep progressing,” he added.

 

The Prime Minister also highlighted other government measures, including no income tax on individuals earning up to ₹12 lakh annually, and stated that GST 2.0 reforms will allow more money to remain in the hands of the people.

 

On the defence front, Modi stressed India’s drive toward self-reliance, pointing out that the country is developing a strong defence manufacturing ecosystem. He said production of AK-203 rifles will soon begin at a factory in Uttar Pradesh in collaboration with Russia.