By Dipak Kurmi
India’s growth narrative has undergone a decisive transformation over the past decade, shaped significantly by a governance model that prioritised inclusion, efficiency, and structural reform. When the Modi government assumed office in 2014, it carried with it the expectations of a nation seeking renewal after years of policy stagnation and fragmented development. What followed was a sustained push to fundamentally reshape the dynamics of India’s economy, beginning with revolutionary steps like the Jan Dhan Yojana, which catalysed one of the world’s largest financial inclusion movements. For the first time, millions were able to access banking facilities with ease, a reform that laid the foundation for Direct Benefit Transfer systems. This marked an end to an era once epitomised by Rajiv Gandhi’s famous observation that only 15 paise of every rupee released by the government reached the intended beneficiary. In contrast, today the full amount reaches the citizen directly, thanks to Aadhaar-linked bank accounts and streamlined digital governance.
The government’s reform journey expanded with the introduction of initiatives such as MUDRA Yojana for entrepreneurship, GST for tax rationalisation, PM-Kisan for farmer income support, Pradhan Mantri Awas Yojana for housing, and Make in India for industrial revival. These efforts aimed to build a self-sustaining economic ecosystem that values transparency, innovation, and grassroots empowerment. The latest chapter in this trajectory arrived with the Next Generation GST Reforms, unveiled at a time when the global order is undergoing its own shifts. The world is grappling with economic rebalancing, supply chain realignment, and geopolitical uncertainty, yet India has positioned itself as a stable, self-reliant force under the broader vision of Atmanirbhar Bharat. Simplifying GST slabs from four categories to just two—18 percent and 5 percent—has been a landmark shift, making taxation more predictable and easing burdens for businesses and consumers alike. Many essential goods have been moved to the lower slab or exempted entirely, reflecting an empathetic approach to public welfare.
The timing of the GST reforms, coinciding with the festive season, has further amplified their impact. At a symbolic level, the reforms were framed as an offering of respect during Navratri, honouring the sacred feminine spirit of Maa Durga. At a practical level, these reforms continued the legacy of the 2017 GST rollout, which ended decades of tax complexity rooted in an assortment of levies like VAT, Octroi, and Excise. By establishing a unified tax structure, the government eliminated fiscal fragmentation and facilitated easier business operations. The supply chain landscape has improved dramatically as inter-state movement of goods became smoother, reducing delays and logistical costs. The benefits have cascaded across the economy: sellers gained operational freedom, consumers gained price relief, and the wider market experienced conditions conducive to organic growth.
One of the most transformative effects of the reforms has been felt in household economics. The government, which earlier expanded access to clean cooking fuels by providing LPG cylinders to every home, has now slashed taxes on basic utensils, reducing the cost burden for families. Most significantly, food items and groceries have become more affordable, easing pressure on household budgets at a time when inflation has been a global concern. This demonstrates a governing philosophy that is acutely attentive to the needs of ordinary citizens, ensuring that macroeconomic gains translate into tangible improvements in daily life.
Healthcare, too, has received focused attention. Historically neglected, the sector witnessed a major shift with the launch of Ayushman Bharat, one of the world’s largest public health insurance programmes. The latest reforms have gone further by placing health and life insurance under the zero percent GST slab. This makes insurance more accessible while encouraging a culture of financial protection that India has long lacked. The reduction in taxes on medical equipment, medicines, and related supplies has further lowered healthcare costs. These steps represent a commitment to long-term public health preparedness, which became particularly vital in the wake of the pandemic. The combination of affordability and expanded coverage lays a robust foundation for a healthier and more resilient population.
Education has been another focal point of the government’s development strategy. From building new schools to implementing the National Education Policy of 2020, reforms have aimed to make education more inclusive, skill-oriented, and globally competitive. The GST changes, which reduce prices of books, stationery, and educational materials, align with the broader mission of strengthening learning outcomes and ensuring that economic constraints do not hinder access to learning. A nation that invests consistently in education invests in its future intellectual capital, which ultimately determines its long-term economic strength.
Agriculture, the backbone of India’s workforce, has seen multiple layers of intervention. The PM-Kisan Yojana simplified income support for farmers, and the recent GST reforms have added momentum by reducing tax rates on tractors from 18 percent to 5 percent. Farm machinery, bio-pesticides, micro-nutrients, and essential equipment have become more economical. This not only boosts productivity but also helps farmers transition toward modern and sustainable agricultural practices. By easing financial pressures in both input and output markets, the reforms empower the agricultural community to be more competitive in a globalised economy.
In an age where technology has become indispensable, the government has aligned its policies to meet the needs of a digitally driven society. Electronics such as televisions, air conditioners, and home appliances have become more affordable due to tax cuts. This has spurred a surge in purchases during Diwali and Dhanteras, making the season particularly vibrant for retailers and consumers. The automobile sector is another major beneficiary. Financial institutions have reported unprecedented demand for motor vehicles, driven by lower prices and rising aspirations of the middle and lower-middle classes. With one sweeping reform, the government has invigorated the industry, which had been recovering from global supply shocks and high input costs.
The textile industry, a lifeline for millions of Indian workers, has also witnessed a positive upswing due to cheaper raw materials and reduced cost burdens. During festivals, when families traditionally buy new clothes, the reduced GST rates have increased sales substantially. Meanwhile, in the real estate sector, essential construction materials like cement, marble, and granite blocks have become cheaper, lowering housing costs and energising the government’s mission of affordable housing for all. Real estate, a major employment generator, is poised for renewed growth as both developers and buyers respond enthusiastically to the reduced costs. The toy industry, which was revitalised after the Prime Minister’s call to support Swadeshi toys, has now received another boost. The sector, already projected to reach USD 3 billion by 2028, will likely exceed expectations under the new tax framework.
The cumulative effect of these reforms extends far beyond individual sectors. Small-scale traders, large industries, MSMEs, and startups all stand to gain in different ways. India’s MSME sector—employing nearly 62 percent of the country’s workforce according to the McKinsey Global Institute—will play a pivotal role in absorbing the benefits and driving the next phase of industrial expansion. The government’s push for Swadeshi goods has reinforced this momentum. From Zoho Mail becoming the choice of the Home Minister to initiatives like Vocal for Local, Swadeshi consciousness has grown steadily. Citizens are increasingly embracing indigenous products, creating economic opportunities at home and boosting national pride. When people purchase locally made goods, they support domestic enterprises, enhance job creation, and help build a resilient economic base.
The startup culture, strongly supported by the government, has become a powerful force in expanding India’s Swadeshi footprint. Initiatives like One District One Product promote regional specialities, while the Prime Minister’s call for technological innovation encourages entrepreneurs to build solutions that can compete on a global scale. India has the potential to create the tech giants of the future, and with a young population, a thriving digital ecosystem, and rising global confidence, the vision of becoming a global tech capital is increasingly within reach.
As India steps into a period of profound economic acceleration, these reforms collectively signal a reimagining of national prosperity. They move beyond short-term relief to establish a long-term architecture of growth that is inclusive, sustainable, and deeply rooted in self-reliance. The new GST regime, along with the broader policy ecosystem built over the last decade, reflects a developmental philosophy grounded in empowerment rather than entitlement, efficiency rather than complexity, and innovation rather than inertia. Together, these elements form the blueprint for a rising India, ready to harness its demographic strength, human ingenuity, and cultural identity to build a future of enduring progress.
(The writer can be reached at dipakkurmiglpltd@gmail.com)
