Prime Minister Mr. Narendra Modi’s open letter: GST reforms will add up to Rs. 2,50,000 crore (US$ 28.26 billion) in savings for people

Prime Minister Mr. Narendra Modi, in an open letter on September 22, 2025 said that recent income tax cuts and the next generation Goods and Services Tax (GST) reforms will together generate savings of nearly Rs. 2,50,000 crore (US$ 28.26 billion) for citizens. He urged people to celebrate the ‘GST Savings Festival’ by buying and selling swadeshi (Made-in-India) products, highlighting that lower taxes and simpler rules will strengthen local manufacturing and create new jobs. He added that these reforms will directly benefit every section of society, boost savings, and enhance investment across all states. Daily essentials such as food, medicines, soap, toothpaste, and insurance will now either be tax-free or fall in the 5% slab, while goods previously taxed at 12% largely move to 5%.

Chief Minister of Andhra Pradesh, Mr. N. Chandrababu Naidu, welcomed the rate cuts and announced a month-long campaign to explain benefits, estimating a Rs. 8,000 crore (US$ 904.4 million) gain for the state. Union ministers, including Union Minister for Finance and Corporate Affairs, Ms. Nirmala Sitharaman, visited markets to ensure the benefits reach consumers, with Minister of Railways, Information & Broadcasting, and Electronics & Information Technology, Mr. Ashwini Vaishnaw, stating that GST reforms could add Rs. 20,00,000 crore (US$ 226 billion) to GDP by spurring consumption, investment, and jobs.

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