GST Overhaul Accelerates India's Manufacturing Sector, Says PM

Prime Minister Narendra Modi today highlighted the extensive reach of the latest Goods and Services Tax (GST) reforms, describing their role as a catalyst for the strengthening of the Indian manufacturing ecosystem.

The government’s NextGenGST project is introducing a simplified tax structure characterized by two main slabs of 5% and 18%, thus making the compliance activities less cumbersome and less time-consuming due to the lower complexity of taxation for businesses. The reforms are also placing strong emphasis on digital integration, which means faster, more transparent, and streamlined compliance processes that will be efficient across the value chain.

Through the reduction of input costs and cutting of red tape, domestic manufacturers are likely to become more competitive in the new GST framework, which will then lead them to not only increase their production capacities but also draw more attention to Made in India products from the Indian as well as the international markets.

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In his reaction to a post by Prakash Dadlani on X (formerly Twitter), Prime Minister Modi quoted the reforms as a “game-changer” for Indian industry. He further explained that the country’s manufacturing sector would get a double benefit from which it would lower the cost of input and thus make it run faster through the digital compliance route which will at that time keep India at the center of global production.

The NextGenGST is being called one of the most major tax reforms after GST, with the industrial experts forecasting stronger supply chain resilience, greater ease of doing business, and a renewed push toward self-reliance under the government’s Atmanirbhar Bharat vision.