Lauritz Knudsen welcomes the GST Council’s forward-thinking decision to rationalise tax slabs, reiterating the Centre’s sincere commitment towards the country’s overall transition to green energy.

The GST reduction from 12% to 5% on renewable energy equipment and agricultural machinery lowers upfront costs. This will make green technologies more easily available and accessible across India. Tax rationalisation will also facilitate faster adoption of renewable solutions by the energy and agriculture segments. Further, it will empower the delivery of scalable, affordable clean-tech solutions to support the nation’s green mission. We expect these reforms to catalyse extra investments and fast-forward India’s progress towards renewable energy capacity targets for 2030.

The revised GST structure—streamlined into two key rates of 5% and 18%—is expected to ease cost pressures on essential raw materials used by MSMEs across sectors like agriculture, healthcare, food, and household goods. Additionally, the lowered GST on select finished products is likely to boost consumer demand. Since a large portion of these goods are produced by MSMEs, this reform could significantly enhance market opportunities and accelerate growth for small and medium enterprises.

Together, these changes mark a meaningful step toward a more inclusive, sustainable, and growth-oriented economy.

Naresh Kumar, COO, Lauritz Knusen Electrical and Automation