Key Points

The new GST 2.0 reforms are transforming Haryana's economic landscape by reducing tax burdens across multiple industries. These strategic tax cuts are expected to boost consumer demand, enhance global competitiveness, and create more employment opportunities. From automobiles to textiles and dairy, various sectors are set to benefit from the reduced taxation. The reforms represent a significant step towards making Haryana's industries more robust and attractive for both domestic and international markets.

Key Points: GST 2.0 Boosts Haryana's Manufacturing Across Key Sectors

  • GST cuts stimulate auto sector revival in Gurugram-Manesar belt
  • Textile industry gains global competitiveness through tax reductions
  • Dairy cooperatives benefit from lower product taxation
  • Renewable energy and drone manufacturing sectors see significant growth
4 min read

GST 2.0 to spur growth in Haryana's auto, textiles, & dairy sectors

Comprehensive GST reforms drive growth in Haryana's auto, textile, dairy, and manufacturing industries, creating economic opportunities and competitive advantages.

"The reforms have added fresh momentum to Haryana's economy - Official Statement"

New Delhi, Sep 26

The GST 2.0 reforms have reduced tax rates across diverse sectors from automobiles and textiles to fertilisers, steel, pharmaceuticals and renewables, which will boost the economy of Haryana, a state where lakhs of workers depend on manufacturing and allied industries, an official statement said.

In the automobile clusters of Gurugram and Manesar, lower taxes will revive consumer demand and strengthen the supply chain. In Panipat, reduced GST on textiles and carpet manufacturing will make them more competitive globally. For dairy cooperatives in Karnal, cheaper milk and milk products mean higher affordability for consumers and more stable incomes for farmers. Together, these reforms have added fresh momentum to Haryana's economy, the statement said.

The Gurugram-Manesar-Bawal belt in Haryana has emerged as the auto hub of the country. Major players like Maruti Suzuki, Hero MotoCorp, Escorts and Tata Motors are notable buyers and users, supporting lakhs of workers in this industry.

GST on automobiles and parts are cut from 28 per cent to 18 per cent. With the tax burden reduced by nearly 10 percentage points, vehicles are more affordable for consumers. This would translate to higher domestic sales volumes. For the ancillary units & suppliers, the reforms will improve cost competitiveness and create more jobs on factory floors, the statement said.

With Haryana already exporting to automotive markets in Africa, the Middle East, and Southeast Asia, this will also improve export potential by making items more price-competitive abroad.

Haryana's steel and stainless-steel industry spans key districts such as Faridabad, Gurugram, Yamunanagar, Panipat, Karnal, Rewari, Rohtak, and Sonipat. The industry provides direct employment to over 80,000 workers and is supported by large integrated plants like Jindal Stainless and related ancillary units. With output catering primarily to domestic construction, manufacturing, and infrastructure sectors, the industry also exports to Asia and the Middle East. The GST reduction from 28 per cent to 18 per cent will ease input costs, strengthen competitiveness, and is expected to accelerate infrastructural growth, it said.

Panipat is home to fertiliser production facilities with companies like National Fertilisers Ltd and Indian Oil Panipat Refinery. With GST reduced to 5 per cent, input costs for farmers have been lowered. This improves profitability for the farmers. With the rise in demand, this will also lead to more employment in the sector.

Haryana's pharma clusters with medium-scale manufacturing units are set to benefit significantly from the recent GST cuts. The industry is largely based in Ambala, Karnal, and Sonipat, employing over 25,000 workers, including technical staff. These units cater primarily to India's vast domestic healthcare market while also exporting generic drugs to regions such as Africa and Latin America.

The state's Sonipat Industrial Corridor is developing into a dedicated zone for solar and renewable energy equipment manufacturing. The reduction of GST rates from 18 per cent to 5 per cent will result in a fall in production costs, encouraging investment in green manufacturing and supporting the state's contribution to India's renewable energy.

India's first dedicated Drone Manufacturing Technology Hub is being established at Sisai village in Hisar district, which will be the largest hub in South Asia. Employing over 1,000 skilled technical workers, the sector serves defence, agriculture, and surveillance needs. Exports are still emerging, but the potential is high. The GST cut from 18 per cent to 5per cent makes drones and components more accessible, supporting wider adoption and sector growth.

Sonipat, Karnal, and Panipat are home to small and medium-scale agro-based processing units and dairy cooperatives. The reforms have exempted GST on paneer, curd, lassi, and UHT milk. Additionally, GST on dairy products like butter and ghee is reduced from 12 per cent to 5 per cent. For households, this translates into product affordability.

Haryana has a thriving handloom and power loom industry. Panipat is nationally recognised as "the city of weavers" and has emerged as the world's largest hub for pre- and post-consumer textile recycling, anchoring India's leadership in sustainable manufacturing. The sector employs 8-10 lakh people in the state. With GST on textiles and carpets reduced to 5 per cent and man-made fibre/ yarn lowered from 18 per cent to 5 per cent, products are more affordable domestically and globally competitive.

Yamuna Nagar stands at the heart of Haryana's paper and timber industry, contributing to nearly 50 per cent of India's total plywood production. Employing over 20,000 workers, the sector plays a significant role in generating livelihoods and industrial growth. The recent GST rate reduction from 12 per cent to 5 per cent provides much-needed relief by lowering costs and supporting sustainability.

- IANS

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Reader Comments

P
Priya S
As someone from Panipat, I'm thrilled about the textile GST reduction. Our family has been in the carpet business for generations. This will help us compete better internationally. The weavers community really needed this boost!
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Michael C
Interesting to see how India is using tax reforms to boost specific regional economies. The drone manufacturing hub in Hisar sounds particularly promising for future tech development.
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Sarah B
The dairy sector reforms are most welcome! Lower prices for milk products will help middle-class families. Hope farmers actually get better prices too, not just consumers benefiting.
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Arjun K
While the reforms look good on paper, implementation is key. Hope the benefits reach the small and medium enterprises properly. Sometimes these tax cuts don't translate to actual price reductions for consumers.
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Kavya N
The renewable energy focus in Sonipat is excellent! Lower GST on solar equipment will help India's green energy goals. Haryana can become a model for sustainable industrial growth. 🌱
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Vikram M
Good move for employment generation. With so many sectors getting tax relief, it should create more job opportunities for Haryana's youth. The state needs to capitalize on this momentum.

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