Before GST, foreign company found it cheaper to send goods from Bengaluru to Hyderabad via Europe: PM Modi
Prime Minister Narendra Modi shared a wild story on Sunday about India’s tangled tax system before 2014. He pointed out how a French company once found it cheaper to ship goods from Bengaluru to Hyderabad by routing them through Europe, rather than driving straight between the two Indian cities.
This crazy setup stemmed from a mess of taxes, tolls, and checkpoints that turned everyday domestic trade into a nightmare—slow, expensive, and frustrating. “Friends, this was the reality back then because of all those complicated taxes and tolls,” Modi said in his speech to the nation. “Millions of businesses and everyday people dealt with this hassle every single day.”
He explained that those hidden costs for moving goods always ended up hitting poor families and regular customers the hardest. Modi was speaking just ahead of the launch of GST 2.0 reforms on Monday, a big step forward in India’s Goods and Services Tax system.
When Modi’s government took office in 2014, fixing the tax chaos became a key focus. “We put GST at the top of our list for the good of the public and the country,” he said. They talked it out with everyone involved, cleared up states’ worries, and solved every issue along the way. That teamwork made India’s largest tax overhaul a reality.
The Goods and Services Tax, or GST, swept away dozens of overlapping old taxes and rolled out one clear system nationwide. Modi called it the fulfillment of “One Nation, One Tax,” a game-changer that reshaped business and supercharged India’s logistics efficiency.
“Before GST, India was stuck in a web of taxes,” Modi noted. “Now, we have a single unified market. Goods flow freely between states, businesses cut costs, and people enjoy lower prices. That’s the power of ‘One Nation, One Market’.”
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