AIFI Welcomes GST Reform, Calls It a Landmark for Ease of Doing Business and Compliance

(MENAFN- dentsu) Mumbai, 12th September: The Association of Indian Forging Industry (AIFI), the apex body representing the Indian forging sector, has welcomed the Government of India’s recent announcement on the Goods and Services Tax (GST) reform. The forging industry, which plays a pivotal role in powering India’s automotive, engineering, and manufacturing ecosystem, has hailed this reform as a transformative measure that will enhance efficiency, ease of doing business, compliance and long-term global competitiveness.

The new GST framework introduces a simplified structure with reduced tax slabs, rationalized rates and compliance relaxations. For the forging industry, this will translate into greater operational ease, lower transactional costs and a more predictable business environment. By reducing compliance burdens and providing a level playing field for manufacturers, the reform will ensure that both large enterprises and MSMEs within the forging ecosystem benefit equally. The streamlined processes are expected to address long-standing challenges related to reconciliation, credit flow and interstate operations, key factors that have historically impacted the forging sector’s growth trajectory.

Mr. Yash Munot, President of the Association of Indian Forging Industry (AIFI), said, “On behalf of AIFI, I would like to extend our sincere appreciation and warm welcome to the GST reform announced recently. Earlier there were challenges in claiming input credit in few transactions but this is a landmark decision that will simplify processes, reduce compliance burdens and provide a level playing field for manufacturers. The forging industry, being one of the critical pillars of the automotive and manufacturing value chain, will greatly benefit from this reform through improved cost efficiency and smoother interstate operations. We are confident that this move will strengthen India’s competitiveness globally, boost investor confidence and accelerate growth in the manufacturing sector. At AIFI, we remain committed to working in close alignment with the government’s vision for building a robust and self-reliant economy.”

The GST reform is also expected to act as a demand catalyst by making automobiles and capital goods more affordable, thereby driving consumption in key end-use sectors. With India positioning itself as a global hub for manufacturing, this reform strengthens the foundation for exports, encourages fresh investments and empowers the forging industry to scale up capacity and innovation. The simplification of credit notes and compliance processes further reduces administrative overheads, enabling companies to focus on productivity, technology adoption, and workforce development. As the unified voice of the Indian forging sector, AIFI continues to work closely with policymakers, industry stakeholders, and global partners to promote sustainable growth. Representing over 80% of the total forging capacity in India, AIFI plays an instrumental role in advocating for reforms, advancing technology adoption, and enhancing global competitiveness. With the government’s pro-industry approach and reforms like GST, AIFI reaffirms its commitment to strengthening India’s manufacturing ecosystem and contributing to the nation’s economic growth and the vision of Atmanirbhar Bharat.

About Association of Indian Forging Industry

Established in 1965, the Association of Indian Forging Industry (AIFI) is the strongest, oldest Forging Association with highest members from the industry in India. The Indian Forging Industry has always been a major growth driver of the Indian manufacturing sector and is one of the important industries for the success of automobile, power sector and general engineering in the country. The Association of Indian Forging Industry (AIFI) is the umbrella organization of the forging Industry in India with more than 200 members across India. Its members’ products include rough forgings and/or machined/finished parts like Crankshafts, Connecting Rods, Camshafts, Shifted Fork, Steering Components, Crown Propeller Shafts, Gear Box Components; Crown Wheel and Pinions, Front Axle Beams, Rear Axle Shafts, Earth Moving Link, Suspension parts, CV joint parts, Braking parts, Auto electrical components, Railway Wheel, Flanges/Pipe Fittings, Industrial Valves etc. The forging industry is a major supplier to the auto companies and a critical industry that generates employment.

AIFI has been the spokes body of the Indian Forging Industry for about six decades. It has played a major role in encouraging proactive dialogue between all the relevant stakeholders like the industry and Government (both in terms of suggestions for policy making and problem-solving), as also between the industry and the market (User industries — domestic and global customers.) India is the 2nd largest producer of forgings globally next to China.

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