Amit Shah Urges Women to “Do Dadagiri at Home” and Shop Freely Under GST 2.0
- MGMMTeam
- Sep 19
- 4 min read
India is preparing for one of the most significant tax reforms since the launch of the Goods and Services Tax in 2017. From September 22, 2025, the government’s GST 2.0 will come into force, reshaping the tax structure, reducing rates on many essential and lifestyle products, and directly impacting consumer spending. The timing is no coincidence — with the festive season around the corner, the reforms are designed to boost demand while reinforcing Prime Minister Narendra Modi’s vision of “vocal for local.”
Amit Shah’s Call to Women Shoppers
Union Home Minister Amit Shah has taken a personal and emotional approach to explaining GST 2.0, urging women across the country to “do some dadagiri at home” and shop more freely. He stressed that products which once carried high tax burdens of 18% or 28% will now fall under 0% or 5% slabs, offering households real relief. However, Shah placed a patriotic condition on this appeal — that families must choose only Indian-made products. His message is not only about financial savings but also about strengthening domestic manufacturing by ensuring the benefits of higher spending flow into the Indian economy.
What the New GST 2.0 Means
The reforms drastically simplify the tax structure, reducing the earlier four slabs into two main rates of 5% and 18%, while retaining a higher 40% rate for luxury and sin goods. This restructuring means that many essentials — from food to medicines and toiletries — will become cheaper, while several consumer services such as gyms, salons, and yoga centers will also attract lower taxes. Household appliances like air conditioners, dishwashers, and large televisions will see sharp cuts in effective rates, making them far more accessible for middle-class families.
Automobiles, too, will benefit, especially in the two-wheeler and compact car segments, where taxes have been significantly reduced. However, luxury vehicles and premium goods will face higher tax burdens under the new demerit category. This balance reflects the government’s intent to encourage affordability for the masses while maintaining strict taxation on extravagance.
The Push for Swadeshi
Beyond tax rationalisation, GST 2.0 has been packaged as a social and economic movement. Shah and other leaders have repeatedly stressed that this is not simply a rate cut but part of a broader strategy to boost “Swadeshi” — a call to buy local, support artisans, and empower Indian industries. This comes at a time of international trade pressures, with the US imposing steep tariffs on Indian exports following India’s oil deals with Russia. In this context, encouraging citizens to prioritize domestic products is both an economic safeguard and a cultural assertion of self-reliance.
Benefits and Challenges Ahead
For consumers, the immediate benefit lies in cheaper essentials and lifestyle goods, which could ease household budgets and spur festive spending. For small businesses and MSMEs, the simplified slabs are expected to reduce compliance costs, improve formalisation, and enhance competitiveness. Analysts also suggest that inflation could ease by over one percentage point, further boosting consumer confidence.
Yet, challenges remain. With no strong anti-profiteering mechanism currently in place, there is a risk that manufacturers and retailers may not pass on the tax savings fully to consumers. States, too, are worried about short-term revenue losses, with some estimating significant deficits in their annual budgets. The success of GST 2.0 will therefore depend on how effectively businesses adjust prices, how states manage their finances, and how well consumers are informed about their entitlements under the new tax regime.
A Festival of Consumption
The launch of GST 2.0 just before Navratri and Diwali is strategic. The government hopes that reduced prices will lead to a consumption boom during the most important shopping season of the year. Already, some automobile companies and consumer goods manufacturers have announced price cuts ahead of the implementation. If these changes reflect on retail shelves quickly, the festive season could mark not just a celebration of culture and faith but also of economic reform.
The MGMM Outlook
The government’s launch of GST 2.0 on September 22, 2025, marks a decisive step in reshaping India’s tax structure, with the timing strategically aligned to the festive season. Union Home Minister Amit Shah urged women to “do dadagiri at home” by shopping freely, highlighting that essentials and lifestyle products which earlier attracted higher tax slabs of 18% or 28% will now come under 0% or 5%. This change offers real relief to households while promoting Prime Minister Modi’s vision of “vocal for local.” From daily-use items like food and medicines to appliances and personal services, reduced rates are expected to ease family budgets and energize consumer demand, particularly in the middle class. Automobiles in the two-wheeler and compact car segments will also see tax cuts, while luxury goods and premium vehicles remain under higher brackets, reflecting the government’s balanced approach to affordability and responsibility.
At its heart, GST 2.0 is not just about lower taxes but about reinforcing the Swadeshi movement, urging citizens to prioritize Indian-made products and support local industries amid global trade challenges. By simplifying slabs into just 5% and 18% categories, the reform reduces compliance burdens on MSMEs, potentially easing inflation and boosting competitiveness. However, its success will depend on businesses passing on the benefits, states managing revenue losses, and citizens embracing the call for self-reliance. If executed effectively, this reform could redefine India’s consumption story — turning upcoming festivals into not just cultural celebrations but also milestones in economic transformation.
(Sources: India Today, Moneycontrol, News18)
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