PM Modi’s 5 PM Address: GST 2.0, Navratri “Bachat Utsav,” Make in India & Nagrik Devo Bhava Mantra

PM Modi’s Address: Key Announcements, Significance & Impact

On September 21, 2025, PM Narendra Modi addressed the nation to unveil India’s next-generation GST reforms and related tax reliefs, just ahead of Navratri and their rollout beginning September 22. Here’s a breakdown of what he announced, why it is important, and how different segments of society will benefit.

Key Highlights from the Address  

1.GST 2.0 Reforms & “GST Bachat Utsav”

• From September 22, the new GST (“Next-Generation GST”) reforms kick in, coinciding with the first day of Navratri.
• PM Modi called it “GST Bachat Utsav” — a “festival of savings” for citizens.

  2. Income Tax Relief + GST Cuts = ₹2.5 Lakh Crore Savings

• Combining the reforms, income tax exemptions and GST cuts will lead to savings of approx ₹2.5 lakh crore across society.

• Income up to ₹12 lakh is now exempt from income tax.

3. Simplification of GST Rates

• A reduced number of slabs. Largely two GST slabs: 5% and 18% for most goods and services.
• 99% of items earlier taxed at 12% have shifted into the 5% slab.

4. Reduction in Cost of Everyday Goods

Many essentials: medicines, insurance, hotel stays, soaps, etc., will become cheaper.
Travel (hotel rooms) also gets more affordable due to GST rate reductions.

5. Focus on Poor and Neo-Middle Class: Double Bonanza

• Poor and the “neo-middle class” will benefit significantly. The address emphasised that they are getting a “double bonanza” — from both income tax relief and GST cuts.

6. Swadeshi / “Made in India” Push & Self-Reliance

• Modi urged citizens to buy Indian-made products: “Garv se kaho, ye swadeshi hai” (Say with pride: this is swadeshi).
• He called upon MSMEs, state governments, industries to boost domestic manufacturing — whatever can be made in India should be made in India.

7. Mantra of “Nagrik Devo Bhava” (Citizen is God)

• Government emphasised this guiding principle in the reforms: that the citizen’s welfare is central.

Why This Is Important (General Significance)

• Relief to Consumers: Especially for the lower and middle income classes, price reductions on everyday goods mean immediate increase in disposable income.
• Simplified Tax Regime: Fewer slabs, easier compliance, fewer complications for businesses, especially MSMEs.
• Boost to Domestic Manufacturing & Jobs: By encouraging “Make in India” and swadeshi products, demand for local goods increases, helping producers, industries, and employment.
• Strengthening Self-Reliance: Reducing dependence on imports, strengthening supply chains locally, resilience in global trade disruptions.
• Political / Social Cohesion: Aligns with popular sentiments like swadeshi, citizen first (Nagrik Devo Bhava), potentially increasing trust in governance.

How the Country Stands to Benefit

• Economic Growth: More consumption; as people save more, they’ll spend on aspirational products. This increases demand, which helps industries.
• Formalisation of Economy: Lower GST slabs and simplified process may bring more people into the formal tax structure.
• Increased Investment: With states being asked to support manufacturing, investment climates may improve regionally.
• Improved Global Standing: High-quality domestic production, stronger exports, and better competitiveness.

How People Will Benefit Directly

• Savings: A saving of ~₹2.5 lakh crore — money stays with people rather than going to taxes.
• Cheaper Goods & Services: Medicines, hotel rooms, essentials become more affordable.
• More Disposable Income: Particularly for neo-middle class and poorer sections: with lower tax and lower GST, more income remains for savings/leisure.
• Aspiration & Lifestyle: Ability to buy things that were previously “luxury” or extra burden.
• Local MSMEs & Jobs: Local producers will have more demand; job creation can follow in manufacturing, small business etc.

“Make in India” & Swadeshi: Key Themes

• The address stressed that everything that can be manufactured in India should be done here, reducing import dependency.
• Citizens are encouraged to be mindful of what they buy — choosing Indian goods even for small items (“the comb in your pocket”) so that every purchase supports local industry.
• MSMEs are seen as central to this transformation; they are urged to produce high-quality, globally competitive products.

“Nagrik Devo Bhava” Mantra & Its Role

• This phrase (“Citizen is God”) frames the government’s approach: putting citizen welfare at the core of policy.
• The GST reforms + tax relief are illustrative of that philosophy: policy actions designed to directly benefit the common citizen, not just corporations or select sectors.
• Encourages accountability: citizens’ needs are central; hence, government expects that benefits (e.g. GST rate reductions) are passed on fairly by businesses.

Potential Challenges / Things to Watch

• Implementation: Ensuring GST reductions are properly reflected in marketplace prices (shops, services). There is always lag or resistance in passing on benefits.
• State Cooperation: States need to align with central reforms; some may lose revenue in short term and will need incentives.
• Inflation & Supply Chains: Even with tax cuts, if supply side costs remain high (raw materials, logistics), benefit may get diluted.
• Awareness: Citizens need to know which goods are cheaper now; lack of awareness can reduce impact.

Conclusion

PM Modi’s address lays out a major economic moment for India. With GST 2.0, income tax relief, the “GST Bachat Utsav”, and strong calls for “Make in India” and “Nagrik Devo Bhava”, the government aims to combine economic efficiency with citizen-centered welfare.

If the implementation is smooth and benefits widespread, this could mark a step-change in how ordinary Indians experience taxation and affordability — and how the economy grows with a stronger domestic base.

Let India celebrate the auspicious nine nights and an explosive 10th day with great enthusiasm post Implementation of GST 2.0