PM Modi Urges States To Embrace Cooperative Federalism For Self-Reliance

PM Narendra Modi addressed the nation on the eve of landmark GST reforms, sending a strong message on cooperative federalism.

He called on state governments to actively support the Centre’s efforts to realise the dream of a self-reliant India.

Apart from greeting citizens on the occasion of the ‘Bachat Utsav’ or ‘Savings Festival’, PM Modi encouraged people to prefer Indian products over foreign ones. He also urged states to join hands with the Centre in the Aatmanirbhar Bharat and Swadeshi campaigns.

“When the Centre and states move forward together, the dream of a self-reliant India will be fulfilled. Every state will develop, and India will become a developed nation,” he said.

PM Modi asked state governments to boost manufacturing in their regions with energy and enthusiasm. He encouraged them to create a conducive environment for investment to strengthen local industries and support the nation’s economic growth.

Cooperative Federalism and GST Challenges

The Prime Minister’s emphasis on cooperative federalism comes as a significant reminder, given that the 2017 GST reforms initially created friction between the Centre and states.

Issues like revenue-sharing disputes, delayed compensation payments, loss of fiscal autonomy, and unequal decision-making powers in the GST Council had sparked tensions.

On the eve of GST 2.0, PM Modi’s call underscores the complexities of India’s federal structure. While the new tax regime has created a more unified national system, balancing state autonomy and central oversight remains a challenge.

GST 2.0: A Step Towards Aatmanirbhar Bharat

PM Modi hailed the next-generation GST reforms as historic, describing the move as a major step towards Aatmanirbhar Bharat.

“From sunrise on September 22, a new chapter in India’s tax regime will begin,” he said, calling it the start of a ‘GST Savings Festival’ that will directly benefit the poor, middle class, women, small businesses, and youth.

“With these reforms, the savings of every Indian will increase, and people will be able to buy their preferred items more easily. This festive season, everyone’s happiness will multiply,” he added.

PM Modi said excise, VAT, and octroi tangled India’s tax system before 2017.

“For decades, our citizens and traders were caught in the maze of dozens of taxes. Moving goods from one city to another meant crossing multiple checkpoints, filling endless forms, and paying arbitrary tolls. The burden ultimately fell on the poor consumer,” he said.