By Shivli Singh
Pune consumers hope there’s a reduction in costs across categories, from food to FMCG to automobile and real estate, following the newly announced GST slabs. Industry bodies and companies with manufacturing units in Pune expect the changes to drive demand, especially among middle-income families and first-time home buyers, and build on the sales momentum seen from June through September.
Car makers with a strong presence in Pune, such as Tata Motors and Bajaj Auto, are looking forward to the GST rate cut on small cars and two-wheelers. And, they say, this could increase affordability for young professionals and families while creating an impetus for one of Pune’s strongest industrial sectors. Likewise, dairy companies such as Katraj Dairy expect prices of inputs to remain steady, which could, in turn, benefit consumers on daily staples.
Hospitality players, Pune Restaurant and Hoteliers Association (PRAHA), however, hailed the revised tax slabs. As the munchies become cheaper, this would tempt hotels to attract more footfalls, especially during the festive period when there is always a rise in dining-out demand. Hundreds of smaller local restaurant chains are planning promotional offers, hoping GST-led affordability will bring in new customers.
Real estate developers in Pune, including Kolte-Patil Developers and Panchshil Realty, also see benefits. With construction materials costing less under the new GST regime, developers hope that projects may become more affordable for buyers now, so interest in residential sales across the city will pick up.
The government’s move to keep a 5% GST rate on EVs has also been hailed by automakers and startups in the electric vehicles ecosystem in Pune, underlining India’s clean mobility drive. Together, these reforms are expected to have a beneficial impact on household budgets and local industries and can also set off a chain reaction for Pune’s economy, analysts said.