The Narendra Modi government truly deserves appreciation for the way it has been steadily easing the common citizen’s financial burden. At a time when global economies are struggling with inflation, cost of living spikes, and slowing growth, India has not only kept inflation under control but also undertaken a series of reforms that directly touch everyday lives. Among these, the rationalisation of the Goods and Services Tax (GST) stands out as one of the most far-reaching changes, reshaping how citizens spend, how businesses operate, and how affordability is defined for millions of families.
The income tax system has been simplified, compliance has become easier, and tax liability has reduced. Filing returns today is no longer the stressful exercise it once was, thanks to pre-filled forms, rationalised slabs, and user-friendly platforms.
Families have more disposable income and small businesses find it easier to comply without losing hours to paperwork. Complementing this, the introduction of smart cards for tolls has taken away the irritation of long queues and cash fumbling, replacing them with transparency and convenience. These smaller reforms represent a larger philosophy: making daily life smoother while modernising governance. The most significant relief, however, has come through the recent reduction and rationalisation of GST rates. Food and beverages are the foundation of every household budget, and here the change is striking.
Milk is now completely tax-free, putting it within reach for families across rural and urban India. Chocolates, once taxed at a steep 31 per cent, and mineral water, earlier at 27 per cent, now attract just 5 per cent GST. For middle-class homes that see these as everyday purchases rather than luxuries, the difference is tangible. It is not just a tax cut; it is a recognition that essential consumption should never be punished. Household essentials too have seen a dramatic easing of tax rates. Soap, toothpaste, bicycles, furniture, and kitchenware that were earlier burdened with 27 to 28 per cent GST now fall into the 5 per cent bracket.
This is a shift that saves families money each month while ensuring that basic hygiene, mobility, and household needs are affordable. In a country where every rupee matters to middle-income families, this is an extraordinary difference.
Electronics and home appliances, which have long been aspirational items for a large section of the middle class, have also been made more accessible. Televisions, refrigerators, air-conditioners, and kitchen appliances that were earlier taxed at 31 per cent now face only 18 per cent GST. This is not only a financial relief but also a social equaliser, as gadgets that improve comfort, efficiency, and quality of life are no longer limited to the affluent. Middle-class homes can now afford modern appliances without feeling penalised by taxation. The textiles and clothing sector, one of India’s largest employers and the lifeline of many small and medium enterprises, has also benefited. Fibres, yarns, carpets, and towels that carried GST rates of 18 or 12 per cent are now taxed at just 5 per cent. This serves two purposes: it lowers the cost for consumers and boosts the competitiveness of small businesses, weavers, and artisans who form the backbone of India’s textile economy. By aligning GST rates with affordability and industry health, the government has struck a balance between protecting household budgets and encouraging industrial growth.
Healthcare has perhaps seen the most compassionate reform. Health and life insurance, once taxed at 18 per cent, are now completely exempt from GST. This means families looking to secure themselves against medical emergencies can now do so without the burden of additional taxation. Coupled with reductions in GST on cancer drugs and medical equipment in earlier rounds, this reflects a conscious decision to place people’s health above revenue considerations. In a country where medical expenses are often catastrophic, this is more than a policy shift, it is an act of empathy.
Agriculture, the backbone of rural India, has also been brought into the reform narrative. Tractors, tyres, pumps, and farm inputs that once attracted 20 per cent GST are now down to just 5 per cent. This reduces the cost of farming, makes mechanisation affordable, and boosts rural growth. Farmers stand to gain directly, while consumers indirectly benefit from reduced cost pressures across the food supply chain. The government has thus ensured that reforms are not only urban-centric but equally rural-focused.
All of these measures rest on a foundation of macroeconomic stability. Inflation has been kept consistently low, even when global prices of fuel and food surged. By carefully managing supply chains, ensuring adequate stock buffers, and avoiding reckless spending, the government has protected the average household from the crippling effects of high inflation that have hurt other economies. Controlled inflation means that the benefits of GST reductions are not wiped away by price rises elsewhere, ensuring that every reform translates into real savings for the people.
The GST journey, often criticised in its early years for complexity and high rates, has today become a story of correction, rationalisation, and relief. Rates that were once punitive are now aligned with affordability. Compliance that once scared small traders has been simplified. And the overall framework is now more balanced, more efficient, and far more citizen-friendly. The story of GST reform is, in essence, the story of governance that listens, learns, and adapts.
When all these threads are woven together — the lighter income tax regime, the efficiency of toll systems, the rationalisation of GST across food, essentials, gadgets, textiles, health, and agriculture, and the sustained control of inflation — the picture that emerges is clear. This is a government that is people-centric in its approach, progressive in its outlook, and determined to ensure that economic growth is not just about big numbers in reports but about everyday relief for citizens. For the family at the breakfast table, for the small trader in the market, for the farmer in his field, for the patient in a hospital ward, these are not abstract reforms but lived realities.
In the end, governance is judged not just by policies announced but by how those policies shape daily life. By steadily rationalising GST, keeping inflation low, and cutting burdens across sectors, the Modi government has ensured that growth is both inclusive and felt at the grassroots. It is a reform story that deserves recognition not only for its economic impact but also for its human touch.
The writer is a commentator on socio-political issues