GST reforms will mitigate the US tariff impact on the Indian Economy

New Delhi: Forward-looking policies, including goods and services tax (GST) reforms, have mitigated the effect of US tariffs on the Indian economy, said Yogesh Mandhani, President of the AIIFA Sustainable Steel Manufacturers Association, on Friday.

“The GST rationalisation will boost the economy, as it will create demand and will be beneficial for the secondary steel sector,” said Mandhani.

He also called for introducing reforms in mining policies, such as auctioning more mines with a focus on operationalising it quickly, ensuring auction winners avoid delaying mining operations.

These reforms are also likely to reduce steel production costs as more iron ore is available in the market.

“The reforms in mining policies will ensure increased iron ore availability, bringing down raw material cost for steel production. This may also boost exports as Indian steel producers become more competitive,” said Mandhani.

Further, targeting export markets is also likely to increase the capacity utilisation of secondary steel producers, which currently hovers around 68-70%.

“The current domestic demand allows us to operate at 68-70% of our total capacity utilisation, capturing export markets as we become more efficient can help us push up our capacity utilisation,” added Mandhani.

He also demanded rationalisation of power tariffs, asking the government to introduce “one nation one tariff.”

AIIFA Sustainable Steel Manufacturers Association represents the secondary steel industry of India, which contributes 47% to the nation’s steel output.