On 21st September, Prime Minister Narendra Modi addressed the nation announcing Next Gen Goods and Services Tax (GST) to come into effect from 22nd September, the first day of Navratri. During his address, PM Modi highlighted the scale of difficulties Indian businesses once faced due to the maze of taxes and checkpoints that existed before the GST. He recalled a striking case reported by the French business daily Les Echos in 2014.
My address to the nation. https://t.co/OmgbHSmhsi
— Narendra Modi (@narendramodi) September 21, 2025
According to the 2014 report, a French technology company operating in India had found it cheaper and more efficient to send its goods from Bangalore to Europe and then back from Europe to Hyderabad, despite the two Indian cities being just 570 kilometres apart. The decision stemmed from the time lost and costs incurred at numerous state borders, toll plazas and checkpoints.
PM Modi said such extreme coping strategies were once the norm for companies across India, underlining how the introduction of GST finally unified the country’s market and removed decades of logistical inefficiencies.
