India officially rolled out its "GST 2.0" reforms on September 22, 2025, marking a significant overhaul of the nation's indirect tax system. The changes, which coincide with the first day of Navratri, involve reduced GST rates on approximately 375 items, aiming to provide considerable relief to consumers and stimulate economic activity.
Prime Minister Narendra Modi addressed the nation, hailing the reforms as a "GST Bachat Utsav" (Savings Festival). He emphasized that these changes are designed to bring a new wave of benefits to every citizen, particularly the poor, middle class, and neo-middle class, by making essential goods and various services cheaper.
Under the new regime, only two primary tax slabs, 5% and 18%, will remain, a move intended to simplify the tax structure and ease compliance for businesses. Goods such as food items, cars, televisions, air conditioners, and refrigerators are among those expected to see price reductions. The Prime Minister stated that these reforms would accelerate India's growth story, simplify business operations, and enhance the country's attractiveness for investments.
In a related economic development, Prime Minister Modi also urged citizens to embrace "Swadeshi" or made-in-India products, advocating for a boycott of foreign-made goods. This call comes amidst trade discussions with the United States, following the US imposing a 50% tariff on Indian imports. India's Commerce Minister Piyush Goyal is scheduled to visit Washington for trade talks to mend strained ties.
The ruling Bharatiya Janata Party (BJP) plans to launch a nationwide "GST savings festival" campaign from September 22 to 29. This initiative aims to raise awareness about the new tax system among traders, shopkeepers, and the general public, with BJP Members of Parliament directed to organize outreach activities in their constituencies. While the government projects significant benefits, opposition parties, including the Aam Aadmi Party (AAP) and Congress, have criticized the reforms, with AAP leaders accusing the government of "looting" citizens through the tax regime and Congress calling the changes "inadequate" or a "band-aid" fix.