Today is the first Navratra—a festive season of celebration, fasting, and fervour, as a run-up to Diwali, the most celebrated Hindu festival. On the eve of the first Navratra, Prime Minister Narendra Modi announced that he would be addressing the nation. Memories of another day and another address to the nation made people a bit nervous. The country has already been reeling under the heavy barrage of diplomatic fire, ranging from Trump’s tariffs to his new H1B policy, along with the Saudi-Pakistan alliance. So when the PM began his speech at 5 pm, people did not quite know what to expect.
And yet, during his 19–minute monologue, our gracious leader explained the GST reforms in detail, extolling the benefits of ‘swadeshi’ and ‘Make in India’. “Whatever we can make in India, we must”, he urged the people in his address—the first since the economic fallout of Trump’s 50 per cent tariffs on Indian goods exported to the US. If the 50 per cent tariffs continue through FY2026, loss in US exports could be $30-35 billion. As per the Economic Times, August shipments to the US plunged to $6.7 billion, down 16.3 per cent from July—the steepest monthly fall of 2025.
According to Reuters, experts believe that India’s GDP could get shaved by 0.3-0.8 per cent, depending on how long and how broadly these tariffs operate.
A season of renewal
Navratri has always been more than just a religious festival. It marks renewal, togetherness, and the spirit of sharing. Across India, families purchase new essentials, light diyas, exchange gifts, and support local artisans. This year, the festive spirit aligns with a broader national reset—the introduction of a simplified GST framework that aims to ease compliance, boost consumption, and put more money into the hands of ordinary citizens. The rollout of GST 2.0 was announced a couple of weeks ago by finance minister Nirmala Sitharaman, but it takes effect at the stroke of midnight on the first Navratra. PM Modi calls it a “Bachat Utsav”, or a festival of savings.
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From complexity to clarity
GST 2.0 signals a ‘one nation, one tax slab’ vision. The prime minister, during his address to the nation on 21 September, announced that the restructured GST will now be simplified into just two slabs. This marks a decisive shift from the earlier complex system that created friction for households and small businesses alike.
By lowering rates on essentials and streamlining compliance, GST 2.0 signals a ‘one nation, one tax slab’ vision. According to government estimates, households could collectively save up to Rs 2.5 lakh crore this year. The move is also aligned with the ‘Vocal for Local’ ethos, encouraging citizens to buy goods made in India, thereby supporting traditional artisans and small enterprises. The reduced GST rates will encourage domestic consumption, thereby offsetting the economic impact of the reduction in exports due to increased tariffs imposed by the US.
Growth with equity
Vikas bhi aur virasat bhi—progress must walk hand-in-hand with heritage.
The festive edition of the GST rollout is not just about good economics; it is also about values and the Indian ethos. It places emphasis on ensuring that growth reaches the very last person in the last queue (antyodaya), echoing the Directive Principles of State Policy.
“The State shall, in particular, strive to minimise the inequalities in income, and endeavour to eliminate inequalities in status, facilities and opportunities, not only amongst individuals but also amongst groups of people residing in different areas or engaged in different vocations,” the document reads.
By reducing the tax burden on essential goods, the reform seeks to reduce inequality while stimulating broader participation in the consumer economy. At its heart, this GST 2.0 is a mid-course correction—a recalibration that balances fiscal prudence with social fairness.
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Looking ahead
While GST 2.0 is a welcome simplification, it is only one step in a longer journey of reform. Corporate tax structures, surcharges, and personal income tax complexities still need addressing. The new Income Tax Code, set to roll out in April 2026, promises further simplification and structural improvements, aiming for a fairer and more transparent system.
“Combined with the Income Tax relief (effectively zero tax for those with incomes up to ₹12 lakh a year, announced in the last budget), the GST reforms will now mean savings of ₹2.5 lakh crore for Indians,” Modi said.
For India to move toward its ‘Viksit Bharat’ vision, reforms must not only appear efficient on paper but also be equitable in practice. That means broadening the zero-rated basket for essentials like nutrition and healthcare, tightening anti-avoidance measures on luxury consumption disguised as corporate expenses, and ensuring high earners contribute fairly through progressive taxation.
Shared festival, shared future
“India’s economic journey is also a social journey.”
The Navratri-Diwali season symbolises light, renewal, and collective joy. Linking this cultural moment with a fiscal reset is more than symbolic—it sends a resonant message that India’s economic journey is also a social journey.
When households save more, artisans sell more, and businesses find compliance easier, the benefits ripple across the economy. As diyas light up every home this Diwali, they carry with them the hope of a system that is simpler, fairer, and designed for every citizen to climb the ladder of opportunity.
“Swadeshi should become our life mantra. Let’s embrace swadeshi with pride. The things that will be made here by Japan are also swadeshi,” Modi said last month, flagging off the Suzuki eVitara in his home state and that of MK Gandhi. Indians must embrace this statement as we prepare to sail into the festive season.
Meenakashi Lekhi is a BJP leader, lawyer and social activist. Her X handle is @M_Lekhi. Views are personal.
(Edited by Saptak Datta)