Reforms cut costs by up to 11% in auto and machinery sectors, boosting demand, production, and logistics, creating jobs and increasing MSME activity nationwide
New Delhi
Recent Goods and Services Tax (GST) reforms have brought major benefits to Jharkhand’s economy, lowering costs across industries and making goods more affordable, the government said on Saturday. These tax changes are strengthening Jharkhand’s role as one of India’s key industrial states.
Jharkhand, known for its strong steel and heavy engineering base, contributes nearly one-fourth of India’s total steel output. The new GST cuts have given a boost to sectors that use Jharkhand’s steel and machinery. Taxes on small cars and two-wheelers have dropped from 28 to 18 percent, while tractors below 1800cc now attract just 5 percent instead of 12 percent. Tractor parts and auto components have also seen reductions to 5 and 18 percent respectively.
These reforms have reduced costs across the automobile and machinery chains by up to 11 percent, making vehicles cheaper and spurring higher demand. This rise in production and logistics has improved capacity use in steel and heavy engineering, generating more jobs and MSME activity.
Jharkhand’s industrial hubs in Jamshedpur and Bokaro, supported by over one lakh formal workers, are seeing renewed energy. The ripple effects are benefiting local vendors, small manufacturers, and service providers.
The state’s steel and engineering products are vital for India’s construction, infrastructure, and automotive sectors, and also exported to countries like the US, China, Japan, and Bangladesh. Officials said the GST reforms will not only boost domestic demand but also make Jharkhand’s exports more competitive globally, reinforcing its position in both Indian and international markets.
