Indians will save ₹2.5 lakh crore… PM Modi explains why the tax reforms are being called a “savings festival”

PM Modi addressed the nation on the New Generation GST reforms. (Photo: ITG)

Prime Minister Narendra Modi described the new GST reforms as a “savings festival” and said they will save the country over ₹2.5 lakh crore. Emphasizing the contribution of MSMEs to a self-reliant India, he said that whatever can be manufactured in the country should be manufactured there.

Prime Minister Narendra Modi addressed the nation on Sunday September 21 , 2025 . He described the New Generation GST reforms, which come into effect tomorrow, as a “GST savings festival.” PM Modi said, “I am happy that shopkeepers are also very enthusiastic about the GST reforms. They are working to pass on the GST reduction to customers. Boards showing the past and present are being put up in many places.”

“We are moving forward with the mantra of ‘Nagrikta Devo Bhava’”

He said, “We are moving forward with the mantra of ‘Nagrikta Devo Bhava’, and this is clearly reflected in the Next Generation GST reforms.” If we combine the income tax exemption and the GST exemption, the decisions taken in one year will save the people of the country more than 2.5 lakh crore rupees. That’s why I’m saying this is a savings festival.

The Prime Minister said that to achieve the goal of a developed India, we must follow the path of self-reliance. Our MSMEs, i.e., our small, medium, and cottage industries, bear a huge responsibility in making India self-reliant. Whatever we can produce domestically, we must produce it domestically.

‘Our MSMEs will benefit double’

PM Modi said, “With the reduction in GST rates and the simplification of rules and procedures, our MSMEs will benefit greatly. Their sales will increase, and they will have to pay less tax, meaning they will benefit double. Therefore, today I have great expectations from MSMEs. You know that when India was at the peak of prosperity, our MSMEs were the mainstay of India’s economy. The quality of goods manufactured in India was superior. We have to regain that glory.”