Prime Minister Narendra Modi on Monday held a high-level meeting with senior ministers, top bureaucrats, and economists to discuss the government’s upcoming wave of economic reforms, including a major overhaul of the Goods and Services Tax (GST).
After the meeting, Modi posted on X that the government was committed to rapid reforms across sectors aimed at improving ease of living, ease of doing business, and overall prosperity
GST 2.0 in the Works
The review follows Modi’s Independence Day speech where he promised “next-generation GST reforms” as a Diwali gift to citizens. He said the move would lighten the tax burden and stimulate growth.
A draft proposal for GST 2.0 is already on the table. It suggests reducing the current five-slab structure to just two key rates: 5% for essential goods and 18% for most other products. The government argues that this will simplify compliance and make taxation more transparent.
Reform Task Force
To carry the agenda forward, the Centre has set up a new task force that will examine economic laws, rules, and procedures. Its mandate is to recommend reforms that streamline processes and reduce red tape.
Global Context: US Tariffs Add Pressure
The push for reforms comes as India faces fresh trade pressure from the United States. Earlier this month, President Donald Trump imposed an additional 25% tariff on all Indian imports, doubling the existing duty, citing India’s continued energy trade with Russia.
While the first tariff increase took effect on August 7, the second hike will begin on August 27. India’s foreign ministry called the move “unfortunate” and stressed that New Delhi would continue to act in its national interest.
