Next-gen GST reforms will be open, transparent, and more enabling framework for startups, MSMEs, says FM Sitharaman

Finance Minister Nirmala Sitharaman said on Tuesday that the government’s proposed task force on next-generation reforms will be an open, simpler, and more enabling framework for small businesses.

FM Sitharaman mentions task force for next-gen reforms

“Honourable Prime Minister has recently announced the creation of a task force for next generation reforms with a clear mandate to simplify regulations, lower compliance costs, and also build a more enabling ecosystem for startups, MSMEs (micro, small and medium enterprises), and entrepreneurs,” Sitharaman said at the 120th anniversary celebrations of City Union Bank.

“Complementing this is the planned rollout of the next generation GST reforms, with a council meeting tomorrow and the day after (3-4 September)," she said. "In the coming months, (these steps) will set the economy absolutely open and transparent with a further reduction in the compliance burden, making it easier for small businesses to thrive,” she added.

On 15 August, in his Independence Day speech, Prime Minister Narendra Modi announced the formation of a task force to look into the next-generation reforms, for evaluating all current laws, rules and procedures related to economic activities.

The task force will work within a set timeline.

“We have decided to constitute a task force for next-generation reforms. This force will work within a set timeframe to align existing laws with the needs of the 21st century and prepare the nation to become ‘Viksit Bharat’ by 2047,” PM Modi had said in his address from Red Fort on 15 August.

The Finance Minister urged banks to expand credit and fund infrastructure to strengthen India’s long-term growth.

“All the banks are called upon to not only expand credit, but also provide momentum for infrastructure development, ensure timely and need-based funding for MSMEs, bring the unbanked into the fold of formal banking, and meet diverse requirements where the support of banking channels is vital,” Sitharaman said.

“The guiding principles for this transformation must be trust, technology, and transparency,” she added. “On transparency, ensure that every rupee carries not just interest, but also intent and intent aligned with national building.”

Praising City Union Bank’s unbroken record of profitability since its founding in 1904, she called it an “exemplary institution” that has supported small enterprises, agriculture and industry.

She noted that private sector banks remain vital partners in nation-building, pointing to India’s improved banking health: with commercial banks' gross non-performing assets at a multi-decade low of 2.3% and net NPAs (non-performing assets) at just 0.5% as of March 2025.

“The Employees Provident Fund Organisation, the EPFO, recorded all-time net additions of nearly 2.2 million members during June 2025, as many new employees have joined, marking the second consecutive month of record high additions,” she added.

“The Purchasing Managers' Index, particularly for manufacturing, reached its highest level in 17 years (in August). India's fiscal situation has, of course, improved steadily, with fiscal deficit down from 9.2% (of GDP) post-covid and expected to reach 4.4% this year, which is what we have mentioned in our glide path,” FM Sitharaman said.

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