Chennai, September 2 – Union Finance Minister Nirmala Sitharaman on Tuesday said that the next generation of GST reforms will make India’s economy fully open and transparent, further easing compliance burdens and benefiting small businesses. She was addressing the 120th foundation day celebration of City Union Bank in Tamil Nadu, where President Droupadi Murmu was present as the chief guest.
Sitharaman noted that Prime Minister Narendra Modi had recently announced the formation of a task force for these reforms, aimed at simplifying rules, lowering compliance costs, and creating a more favorable environment for startups, micro, small and medium enterprises, and entrepreneurs.
She explained that with the council meeting scheduled over the next two days, the planned rollout of next-generation GST reforms will help open up the economy in the coming months. As per agency report, Sitharaman emphasized that the reforms will reduce compliance burdens further, making it easier for small businesses to grow and sustain themselves.
The Finance Minister also recalled that in his Independence Day address, Prime Minister Modi had announced major changes in GST and promised festive season benefits for citizens during Diwali.
Looking ahead to India’s vision of becoming a developed nation by 2047, Sitharaman urged banks to expand credit, accelerate infrastructure development, ensure timely financing for MSMEs, bring unbanked citizens into formal banking, and meet diverse needs of the economy. She stressed that the guiding principles for this transformation should be trust, technology, and transparency.
Highlighting progress in financial inclusion, Sitharaman said that 560 million Jan Dhan accounts have been opened in the past 11 years, with total deposits of Rs. 2.68 lakh crore, the majority of which belong to women. She also pointed out that India’s scheduled commercial banks have shown significant improvement in asset quality.
She further added that global rating agency S\&P has upgraded India’s long-term credit rating for the first time in 18 years, underlining the country’s strengthened financial standing.
