The implementation of the reform, which simplifies the existing complex GST system, coincides with the Hindu festival Navratri, marking the start of India’s festive season and the period of highest consumption in the country.
Indian Prime Minister Narendra Modi highlighted in a message on the social media platform X the savings the GST tax reform offers, urging unity in striving for a “developed and strong India.”
In a televised address to the nation on Sunday, the Prime Minister assured that the reforms will particularly benefit the middle class and sectors with fewer resources.
“It will be easier for citizens to fulfill their dreams,” whether purchasing a television or a motorcycle or gaining access to housing, he stated.
The Indian government also emphasized that the GST reform is aimed at supporting local production.
In this context, Modi urged for self-sufficiency and the consumption of products made in India, interpreted as a strategy to boost internal growth amid the tariff dispute between India and the United States.
The administration of former U.S. President Donald Trump imposed “punitive tariffs” of 50% on Indian products in August, allegedly as a response to New Delhi’s purchase of Russian oil.
This decision halted negotiations for a free trade agreement between India and the United States and has been seen as the true motive behind it.
Trade talks, however, resumed last week in New Delhi, and India’s Minister of Commerce, Piyush Goyal, traveled to Washington today to continue efforts to unlock the agreement.
“The delegation plans to advance discussions towards quickly finalizing a mutually beneficial trade agreement,” the Ministry of Commerce and Industry stated in a Saturday communiqué.
Washington and New Delhi concluded the sixth round of bilateral trade talks last week, the first in-person meetings between negotiation teams since the U.S. tariff offensive on Indian products.
