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Reduction in GST likely to enhance competitiveness of Indian cement industry: CMA
Sep-05-2025

The Cement Manufacturers' Association (CMA) has said that a reduction in GST is expected to enhance the competitiveness of the Indian cement industry by creating a level playing field with global peers.  CMA President Neeraj Akhoury said ‘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.’

The GST Council on Wednesday approved the reduction of GST on cement from 28 per cent to 18 per cent. Welcoming the development, he said cement is a foundational input material for infrastructure and housing, and the move will likely boost consumption, augmenting considerable infrastructure, including affordable housing.

According to the CMA data, the Indian cement industry has a total installed capacity of nearly 700 million tonnes per annum (MTPA). The industry expects growth between 7 to 8 per cent in the current fiscal, helped by the government's spending on infrastructure and rural housing, having endured a slowdown in FY25.


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