Govt on 'reforms express' path; GST 2.0 saved ₹1 trillion: President Murmu

President Murmu said the government is moving on the path of 'Reforms Express', benefitting the poor and middle class

President Droupadi Murmu on Wednesday said the government is moving on the path of 'Reforms Express', benefitting the poor and middle class, and the historic next-gen GST reform rolled out last year has ensured savings of ₹1 trillion for citizens.

In her address to both Houses of Parliament, Murmu also said the government has revamped the Income Tax law and taken a "historic decision" to exempt income of up to ₹12 lakh from taxation.

"These reforms are providing unprecedented benefits to poor and middle-class families. It has also given a new impetus to the country's economy," Murmu said.

The new and simplified Income Tax Act 2025 has been enacted and will be implemented from April 1, 2026.

 

In the 2025-26 Budget presented on February 1, last year, the government had increased the income tax exemption threshold to ₹12 lakh from ₹7 lakh earlier.

"Today, my government is moving forward on the path of 'Reforms Express'. Old rules and provisions are being updated continuously according to future needs," Murmu said.

Talking about the GST 2.0 reform, under which tax rates of about 375 goods were slashed effective September 22, 2025, Murmu said the historic next-generation reform filled the citizens with enthusiasm.

"This reform ensured savings of one lakh crore rupees for citizens. Following the reduction in GST, in 2025, registrations of two-wheelers have crossed the mark of two crore, which is a new record in itself," Murmu said.

Effective September 22, 2025, Goods and Services Tax (GST) has adopted a two-tier structure, with the majority of goods and services attracting a 5 per cent tax and 18 per cent tax. A 40 per cent tax is levied on ultra-luxury items and tobacco and related products.

At the time of its launch on July 1, 2017, GST was a 4-slab structure of 5 per cent, 12 per cent, 18 per cent and 28 per cent. Besides, a compensation cess was levied on luxury items and demerit or sin goods.

About 99 per cent of goods under the 12 per cent GST slab have been moved to the 5 per cent slab. The rejig also resulted in 90 per cent of items under the 28 per cent tax slab being brought down to the 18 per cent bracket post the GST 2.0 reform.   Murmu said government efforts have led to an unprecedented growth in electronics manufacturing space with India becoming the second-largest nation globally in the field smartphone production and recording exports worth over ₹1 trillion in the first five months of the current fiscal.

She said that over 2.5 million new jobs have been created in the electronics manufacturing sector alone during the last 11 years and more than 10 million youth have also been employed in IT services, electronics manufacturing, and Global Capability Centres with efforts of the government.

"Over the past 11 years, electronics production has increased sixfold. Today, it has reached the mark of ₹11 trillion. India has become the second-largest nation in the field of mobile manufacturing. In the first five months 2025-26, India's smartphone export crossed ₹1 trillion," Murmu said. 

She said microchip is an important area for self reliance in future technology.

"For modern manufacturing and future technology, self-reliance in microchips is very important. In the year 2025, four new semiconductor manufacturing units have been approved. In the coming years 10 such factories are going to start their operations in India," Murmu said.

"With the enabling policies of my government, many new sectors are also emerging in the country," Murmu said.

The President said India has now become the third-largest startup ecosystem in the world.

"A decade ago, there were fewer than 500 startups in the country. Today, nearly two lakh startups have been registered, out of which about 50,000 new startups have been registered during the last year only," Murmu said.

She said over 2 million youth are working in India's startup network and there is at least one woman director in 45 per cent of these startups.

"In the past year, 4G and 5G network services have reached every corner of the country through more than one lakh mobile towers. The expansion of Digital India has introduced India as a major global hub of the creative economy worth thousands of crores," Murmu said.

She said India is shouldering major responsibilities in several global organisations with its extensive role and proactive engagement.

"Keeping in mind the future opportunities and challenges, India is also going to host a Global AI Impact Summit to bring the international community on a common platform. This too will prove to be a significant event for the world," Murmu said.