New Delhi, Sep 26 (NationPress) The GST 2.0 reforms have significantly lowered tax rates across various sectors, including automobiles, textiles, fertilizers, steel, pharmaceuticals, and renewable energy. These changes are set to enhance the economy of Haryana, a state where millions rely on manufacturing and related industries, as noted in an official statement.

In the automobile hubs of Gurugram and Manesar, the reduction in taxes is expected to stimulate consumer demand and bolster the supply chain. In Panipat, the decreased GST on textiles and carpet production will increase global competitiveness. For dairy cooperatives located in Karnal, more affordable milk and dairy products will lead to better accessibility for consumers and steadier incomes for farmers. Collectively, these reforms are injecting new energy into Haryana’s economy, according to the statement.

The Gurugram-Manesar-Bawal corridor in Haryana has become a prominent auto manufacturing hub in India. Major industry players like Maruti Suzuki, Hero MotoCorp, Escorts, and Tata Motors are key contributors, supporting millions of jobs in this sector.

The GST on vehicles and parts has been slashed from 28% to 18%. This nearly 10 percentage point reduction makes vehicles more affordable for consumers, likely resulting in increased domestic sales. For ancillary units and suppliers, these reforms enhance cost competitiveness and create additional employment opportunities within factories, the statement indicated.

With Haryana currently exporting to automotive markets in Africa, the Middle East, and Southeast Asia, the improved price competitiveness is expected to boost export potential.

The steel and stainless-steel sectors in Haryana cover essential districts such as Faridabad, Gurugram, Yamunanagar, Panipat, Karnal, Rewari, Rohtak, and Sonipat. This industry directly employs over 80,000 individuals and is backed by large integrated plants like Jindal Stainless and other ancillary units. Primarily catering to domestic construction and manufacturing, this sector also exports to regions in Asia and the Middle East. The GST reduction from 28% to 18% will alleviate input costs, enhance competitiveness, and is anticipated to accelerate infrastructural development.

Panipat houses fertilizer production facilities operated by companies such as National Fertilisers Ltd and Indian Oil Panipat Refinery. The GST cut to 5% reduces input costs for farmers, enhancing their profitability. Increased demand in this sector is likely to create more job opportunities.

Haryana's pharmaceutical clusters, located mainly in Ambala, Karnal, and Sonipat, are poised to experience significant benefits from the recent GST reductions. This industry employs over 25,000 workers, including technical staff, primarily serving India’s extensive domestic healthcare market while also exporting generic medicines to regions like Africa and Latin America.

The Sonipat Industrial Corridor is evolving into a specialized area for manufacturing solar and renewable energy equipment. The GST rate reduction from 18% to 5% will lower production costs, promoting investment in green manufacturing and supporting Haryana’s role in India’s renewable energy landscape.

India’s first dedicated Drone Manufacturing Technology Hub is being established in Hisar district, specifically in Sisai village. This hub will be the largest of its kind in South Asia, employing over 1,000 skilled technical workers. The sector caters to demands in defense, agriculture, and surveillance. While exports are still developing, the potential is substantial. The GST reduction from 18% to 5% makes drones and their components more accessible, facilitating broader adoption and growth within the sector.

In Sonipat, Karnal, and Panipat, small and medium-sized agro-based processing units and dairy cooperatives benefit from reforms that have exempted GST on paneer, curd, lassi, and UHT milk. Additionally, the GST on dairy products like butter and ghee has decreased from 12% to 5%, resulting in increased affordability for households.

Haryana boasts a vibrant handloom and power loom industry. Panipat is famously known as “the city of weavers” and has established itself as the world’s largest hub for pre- and post-consumer textile recycling, solidifying India’s leadership in sustainable manufacturing. This sector employs 800,000 to 1 million individuals in the state. With GST on textiles and carpets reduced to 5% and man-made fiber/yarn lowered from 18% to 5%, products are now more affordable domestically and competitive internationally.

Yamuna Nagar plays a central role in Haryana’s paper and timber industry, contributing to almost 50% of India’s plywood production. This sector employs over 20,000 individuals and is crucial for livelihood generation and industrial development. The recent GST reduction from 12% to 5% offers significant relief by lowering costs and fostering sustainability.