GST Rate Cut Spurs Cement Industry Growth in India

The recent GST rate cut on cement from 28% to 18% will lower prices, benefit manufacturers, and boost infrastructure development in India. Industry leaders see increased competitiveness and affordability, especially in housing. The policy signals confidence and is expected to spur significant industrial expansion.

The Goods and Services Tax (GST) on cement has been reduced from 28% to 18%, a move celebrated by industry experts who anticipate a subsequent slump in cement prices by Rs 25-30 per 50 kg bag.

Neeraj Akhoury, President of the Cement Manufacturers' Association, stated that this adjustment corrects a historic imbalance and aligns cement with other essential construction materials like steel. The change is expected to increase competitiveness and lower construction costs, particularly beneficial for the real estate sector.

Adani Cement CEO Vinod Bahety hailed it as a strategic reform beyond mere tax rationalisation. He emphasized faster infrastructure development, enhanced industrial growth, and greater accessibility to housing, particularly for middle- and lower-income groups. This policy heralds a significant stride towards fortifying the nation's infrastructure backbone.

(With inputs from agencies.)