The Modi government's recent reductions in Goods and Services Tax (GST) slabs are set to deliver substantial benefits to the Indian economy, with increased revenue, higher sales, and accelerated job creation, according to Maharashtra Deputy Chief Minister Eknath Shinde. Speaking at the GST Savings Festival event in Mumbai's Kalbadevi area, Shinde emphasized that these reforms represent a significant stride towards Atmanirbhar Bharat (Self-Reliant India), aligning with Prime Minister Narendra Modi's vision of a Swadeshi (indigenous) economy.
Simplified GST Structure
The GST reforms, effective from September 22, 2025, coinciding with Navratri, simplify the tax structure by consolidating most rates into just two slabs: 5% and 18%. The 12% and 28% categories have been eliminated for the majority of goods. This overhaul affects around 375 items, making essentials like soaps, toothpaste, Indian breads, electronics, automobiles, and even medicines cheaper for consumers, while reducing compliance burdens for businesses. Notably, GST on medicines has been completely waived, and taxes on gyms, salons, yoga services, and man-made fibres have been slashed from 18% to 5%, boosting competitiveness in textiles and exports.
Direct Impact on Consumers and Businesses
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During the event, organized under the GST Savings Festival initiative, Shinde interacted with local traders in Kalbadevi, a bustling commercial hub, explaining the implications of the rate cuts. He urged them to pass on the benefits to customers, highlighting how reduced taxes would spur production, boost sales, and foster employment.
"When taxes decrease, sales rise, production increases, and job creation gets a fillip. With GST on medicines fully removed and overall rates lowered, revenue will grow, giving momentum to the national economy," Shinde told reporters afterward.
Tied to Self-Reliance and Defense
Shinde linked the reforms to broader national goals, stating that they strengthen Modi's Swadeshi Bharat pledge by reducing dependence on foreign equipment in defense. "Domestic production of missiles and defense materials will become easier, marking a giant leap towards self-reliance," he added. He also praised GST's role in elevating India's global standing, noting the country's rise from the 11th to the 4th largest economy, with ambitions to reach third soon and achieve a developed India by 2047.
Trader Engagement in Kalbadevi
The event saw Shinde engaging with members of the historic Hindustan Chamber of Commerce, one of Kalbadevi's oldest trader bodies. He assured traders of state government support in resolving any implementation hurdles. "If there are any issues with GST enforcement, the Maharashtra government will certainly address them," Shinde affirmed.
Dignitaries and Attendees
Prominent attendees included MP Milind Deora, Shiv Sena's Sushibai Shah, Hindustan Chamber of Commerce President Sushil Gadia, Ramkishor Dark, Mahendra Jain, Amrit Khevasara, Anurag Poddar, former MLA Raj Purohit, Shiv Sena's Rajaram Deshmukh, and several local traders.
