The government reduced GST rates across multiple sectors to strengthen manufacturing and employment opportunities. These reforms target automobiles, food processing, textiles, logistics, and handicrafts while supporting supply chain improvements. Women workers, rural entrepreneurs, and informal sector participants benefit most from these changes. Enhanced employment emerges within garments, toys, handicrafts, leather goods, and micro enterprises. The policy particularly impacts women's work in textiles, tailoring, and dairy operations.
Vehicle taxation decreased substantially across two-wheelers, cars, buses, and tractors. Commercial trucks and delivery vans face reduced rates from 28 percent to 18 percent, lowering freight costs. Tractor GST dropped to 5 percent for engines under 1800cc, strengthening India's global manufacturing position. Food processing received significant relief with rates falling from 12-18 percent to 5 percent or zero. Textile manufacturers gained competitiveness through reduced man-made fiber taxation and expanded garment rate categories for items under 2,500 rupees.
Vehicle taxation decreased substantially across two-wheelers, cars, buses, and tractors. Commercial trucks and delivery vans face reduced rates from 28 percent to 18 percent, lowering freight costs. Tractor GST dropped to 5 percent for engines under 1800cc, strengthening India's global manufacturing position. Food processing received significant relief with rates falling from 12-18 percent to 5 percent or zero. Textile manufacturers gained competitiveness through reduced man-made fiber taxation and expanded garment rate categories for items under 2,500 rupees.
