The Indian government has rolled out exciting GST rate cuts across key sectors like automobiles, food processing, apparel, logistics, and handicrafts. These changes aim to build stronger supply chains, ramp up local manufacturing, and create more jobs—especially for women, rural entrepreneurs, and workers in the informal sector.
Sectors such as garments, toys, handicrafts, leather, and small businesses (MSMEs) stand to gain big from boosted employment. Women, in particular, will see opportunities grow in textiles, tailoring, and dairy processing.
Take automobiles, for instance. Lower GST on two-wheelers, cars, buses, and tractors is set to spike demand. This will help MSMEs producing tyres, batteries, glass, plastics, and electronics. Affordable bikes make life easier for gig workers, farmers, and rural traders, while cheaper cars support small-town dealerships and businesses.
Tractors under 1800 cc now attract just 5% GST, cementing India’s spot as a global leader in tractor manufacturing and aiding related MSMEs. For commercial vehicles like trucks and delivery vans, GST drops from 28% to 18%, cutting freight and logistics costs. This eases inflation and benefits MSME truck owners.
Buses with 10+ seats also get a GST slash from 28% to 18%, making them cheaper for fleet operators and schools. It could even lower bus fares, helping daily wage laborers.
In food processing, most items now face 5% or zero GST, down from 12% or 18%. This supports MSMEs in processing, small-scale units, regional brands, dairy cooperatives, packaging, and cold storage. Chocolates, cakes, and sweets will sell better for local makers. The dairy sector wins with zero GST on milk and paneer, 5% on butter and ghee (from 12%), and 5% on milk cans (from 12%). Farmers, self-help groups (SHGs), and women-led ventures get a boost, improving nutrition access too.
Textiles see relief with GST on man-made fibres dropping from 12% to 5%, fixing duty imbalances and making MSME manufacturers and exporters more competitive.
For readymade garments, the 5% GST slab now covers items up to Rs 2,500 (up from Rs 1,000), driving demand in smaller Tier-2 and Tier-3 towns. It empowers labor-intensive units, with a special nod to women workers.
Leather products under Rs 2,500 per pair get 5% GST (from 12%), benefiting MSMEs in hides, tanneries, and footwear.
Cement’s GST falls from 28% to 18%, reducing housing costs and fueling jobs in mining, manufacturing, and logistics under schemes like PMAY (Pradhan Mantri Awas Yojana).
Agro-based wood products like rice husk boards and bamboo flooring now attract 5% GST (from 12%), supporting MSME wood units.
Overall, these GST reforms make essential goods, raw materials, and services cheaper, encouraging SMEs and startups to expand, innovate, and compete at home and abroad. They particularly empower women-led and labor-heavy industries by lowering prices on manufactured items, processed foods, apparel, and eco-friendly products. This promotes economic growth for rural, semi-urban, and informal workers, alongside urban manufacturers.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
