After GST and Income Tax reforms, India's Prime Minister Narendra Modi has promised more tax reforms to keep pace with the growth in the world's fourth largest economy.
“We are not going to stop here... As the economy strengthens further, the tax burden will keep going down... With countrymen's blessings, GST reforms will continue,” PM Modi said at the inauguration of the UP International Trade Show in Greater Noida on Thursday (25 September 2025).
On 4 September, the GST Council led by Finance Minister Nirmala Sitharaman cut GST rates on hundreds of items — from soaps to small cars — as part of a move to rationalise the indirect tax to two slabs (5% and 18%) from the earlier four — 5%, 12%, 18% and 25%. In Union Budget 2025, Sitharaman announced no income tax for people earning up to ₹12 lakh/year.
These initiatives will result in more savings in the hands of the people, PM Modi said. The GST reforms are set to give new wings to India's growth story and lead to greater savings for the people, he said.
{{/usCountry}}These initiatives will result in more savings in the hands of the people, PM Modi said. The GST reforms are set to give new wings to India's growth story and lead to greater savings for the people, he said.
{{/usCountry}}Still, India must strive to become self-reliant, PM Modi said, even as he called for an increase in R&D investments and innovation.
“Every product that can be made in India should be made in India,” PM Modi said. He invited global investments into India, maintaining that India's growth story remains attractive despite geopolitical disruptions.
PM Modi's call for self-reliance comes even as US President Donald Trump imposed a 50% tariff on India's exports to the world's largest economy. That's set to impact sectors from automobiles to gems and jewellery to textiles and finished garments.
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Additionally, the US has announced $100,000 fee on new H-1B visas, preferred by India's IT services firms to send skilled workers to their biggest market. Such a move, however, disrupts their whole business model altogether.