Budget 2024 Expert Call for Reducing The GST Charge On Essential Materials Such As Steel, Cement, Aluminium

“The government’s commitment to heavy investments in infrastructure projects, especially in tier-2 and tier-3 cities, is expected to boost the nationwide infrastructure. However, the increase in the price of raw materials such as cement, concrete, steel, etc. is impacting its rapid progress. As we anticipate the upcoming budget, it becomes imperative to address these rising costs strategically, ensuring that the national infrastructure development continues at a fast pace and aligns with international standards. Similarly, in the real estate sector, the rise in property prices, attributed to increasing construction material costs and repo rates, has significantly impacted housing demand,” MS. Aparna Reddy, Executive Director, AEL.

“Reducing the GST charge on essential materials such as steel, cement, aluminium and bringing the petroleum products such as Natural Gas, Diesel under GST and bringing petroleum products such as Natural Gas and Diesel under GST will relieve pressure on developers and contractors driving infrastructure growth in full swing. This will propel consumer demand in the real estate segment as well. Moreover, the government should encourage and foster domestic production of building materials that will bolster the self-reliance agenda and generate employment opportunities. A robust domestic production ecosystem will ensure a stable supply chain, ultimately benefiting the entire industry. Further, it is equally imperative to invest in research and development of eco-friendly construction materials and technologies to reduce the environmental impact caused by construction materials. Incentivizing the companies that adhere to eco-friendly norms with favourable policies will drive innovation in this critical area,” MS. Aparna Reddy, Executive Director, AEL.