PTI New Delhi

The GST rate reduction on cement will not only support domestic manufacturers but also accelerate the pace of infrastructure development and catalyse industrial expansion in India, industry players said on Thursday. A reduction in GST is expected to enhance the competitiveness of the Indian cement industry by creating a level playing field with global peers, said the Cement Manufacturers' Association (CMA).

"For a long time, cement has been taxed at one of the highest rates among essential building materials compared to sectors such as steel and several other construction input materials. Lowering the rate to 18 per cent corrects this long-standing anomaly and ensures parity with other core materials," CMA President Neeraj Akhoury said.

Welcoming the GST cut, Akhoury, who is also MD, Shree Cement, said cement is a foundational input material for infrastructure and housing, and the move will likely boost consumption, augmenting considerable infrastructure, including affordable housing.

Adani Cement said a reduction in duty on cement will 'accelerate the nation's infrastructure pipeline, catalyse industrial expansion, and strengthen India's march towards a multi-trillion-dollar economy'.

"This reform is more than a tax rationalisation. It is a signal of confidence, momentum, and purpose, ensuring that India's next era of growth is built on a foundation that is stronger, smarter, and sustainable," said Adani Cement CEO Vinod Bahety.