In the special address to the nation, Prime Minister Narendra Modi unveiled the ‘GST Bachat Utsav’, launching the next-generation GST reforms that go beyond conventional tax policy to become powerful tools of behavioural change and economic self-reliance.

These reforms — along with the income tax exemption on annual incomes up to Rs 12 lakh—are estimated to deliver Rs 2.5 lakh crore in annual savings, strategically applying behavioural economics principles to guide 140 crore Indians toward choices that strengthen Atmanirbhar Bharat.

By reshaping consumption patterns and incentivizing domestic production, these measures create a sophisticated choice architecture that nudges citizens toward healthier lifestyles, sustainable practices, and increased economic productivity, quietly accelerating India’s journey to becoming a truly self-reliant nation.

Unlike traditional economics, behavioural economics highlights that people’s decisions are influenced by biases, emotions, and social factors. The way choices are presented can have a bigger impact than the choices themselves. The GST reforms leverage this principle by creating a choice environment that gently nudges citizens toward better outcomes without imposing stricter rules or bans.

For instance, most dairy products such as ultra-high........

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