The overhaul of India’s Goods and Services Tax (GST) would 'absolutely' set an economy open and transparent while benefitting small businesses by easing their compliance burden, said the country’s Finance Minister, Nirmala Sitharaman, at an event in Chennai on Tuesday.
The GST Council, which is headed by Sitharaman, is due to meet on September 3 and 4 to discuss the new reforms, the announcement of which is being eagerly awaited.
Speaking at the 120th Foundation Day celebrations of the Tamil Nadu-based City Union Bank, where President Droupadi Murmu was the chief guest, Sitharaman further revealed that Prime Minister Narendra Modi had announced the creation of a ‘Task Force’ to simplify regulations, lower compliance costs and build a more enabling ecosystem for startups, Micro, Small and Medium Enterprises (MSMEs) and entrepreneurs.
"Complementing this, the planned roll out of the next generation GST reforms with the planned Council meeting tomorrow and day after, will set an economy absolutely open and transparent in the coming months and with further reduction in compliance burden, making it easier for small businesses to thrive,” she said.
Also Read: GDP growth in Q1 beat economic self-interest challenges: PM Modi
The big-ticket GST reforms and promised a Diwali bonanza for citizens was announced by the Prime Minister during his Independence Day address.
Calling upon the banks to expand their credit in line with the country’s Viksit Bharat 2047 mission, the Finance Minister said “the guiding principles for this transformation must be trust, technology and transparency”.
“Banks must provide momentum for infrastructure development, ensure timely and need-based funding for MSMEs, bring the unbanked into the fold of formal banking, and meeting diverse requirements where the support of banking channels is vital,” she added.
Over past 11 years, 56 crore Jan Dhan accounts have been opened with total deposits of ₹2.68 lakh crore, and majority of the account holders were women, she said.
Talking about the Gross NPAs (Non-Performing Assets) of the Scheduled Commercial Banks, which has come down to 2.3 per cent as of March 31, 2025, while net NPAs were at 0.5 per cent, Sitharaman said the scheduled commercial banks had recorded massive improvement in asset quality.
“Credit rating agency S&P has upgraded the country's long term sovereign credit rating for the first time in 18 years,” she pointed out, and added, “So, strong and well-capitalised banks with a near record low NPAs mean cheaper, steadier credit for households, MSMEs and infrastructure, lower systemic risks and also sustained confidence in India's financial system”.
The minister also hailed the Gross Domestic Product (GDP) registered in the April-June 2025 quarter at 7.8 per cent, “beating all estimates and showing overall good momentum across various sectors”.
Also, inflation rates have registered a ‘decline’ for nine consecutive and reached an eight-year-low of 1.55 per cent in July 2025, she added, while the Employee Provident Fund Organisation (EPFO) saw a net addition of nearly 22 lakh members as of June, 2025, marking growth across sectors.
Quoting a study undertaken by the Indian Institute of Management (IIM), Bengaluru, she said, the Pradhan Mantri Jan-Dhan Yojana accounts helped safeguard the financial savings and were of great help particularly during COVID time.
"Bank account is not just a passbook. It is a passport to opportunities enabling access to credit, savings, insurance and dignity," she said.
While imploring banks to “earn trust through consistent service of ethical conduct and sound governance”, Sitharaman said technology should be leveraged not only for efficient banking, but also for inclusion and customer empowerment.
“Transparency should ensure that every rupee carries not just an interest to banks, but also intended to align with nation-building”, she said.
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