India’s construction and natural stone industries are poised for significant growth following the government’s decision to cut Goods and Services Tax (GST) rates on key building materials. Effective from September 22, 2025, the GST on cement will be reduced from 28% to 18%, while the tax rate on marble and granite blocks will fall from 12% to 5%.
Industry experts estimate that property prices could decline by up to 5% as construction costs drop by 3–5%. The reform is expected to improve housing affordability, stimulate demand, and attract new investments across the residential, retail, and office real estate segments.
Natural Stone Sector at the Forefront
The impact of the tax changes is particularly significant for marble, granite, and travertine, which are core to both luxury and mainstream construction. Lower taxation will support domestic consumption while also enhancing the competitiveness of Indian stone exports.
According to trade data for 2024, India demonstrated strong performance in the global stone market:
India’s Marble & Granite Trade Data (2024)
| Category | Value ($) | Quantity (tons) | Avg Price ($/ton) |
|---|---|---|---|
| Finished Marble (Imports) | 44,821,857 | 48,176.83 | 930.36 |
| Finished Marble (Exports) | 155,400,074 | 151,884.89 | 1,023.14 |
| Marble Blocks & Slabs (Imports) | 294,565,709 | 1,315,550.76 | 223.91 |
| Marble Blocks & Slabs (Exports) | 25,759,749 | 152,099.26 | 169.36 |
| Finished Granite (Imports) | 4,607,715 | 3,973.79 | 1,159.53 |
| Finished Granite (Exports) | 866,734,658 | 2,155,875.22 | 402.03 |
| Granite Blocks & Slabs (Imports) | 13,976,552 | 4,709.43 | 2,967.78 |
| Granite Blocks & Slabs (Exports) | 385,109,959 | 3,321,512.06 | 115.94 |
Imports vs Exports – Value ($)
Average Price per Ton ($)
A Boost for Real Estate and the Economy
Anuj Puri, Chairman of ANAROCK Group, noted that the tax reforms will “positively impact India’s residential, retail, and office real estate sectors,” adding that the reduced GST will help accelerate the government’s ‘housing for all’ objective.
The timing is also crucial, as the festive season traditionally drives higher home-buying activity. Developers and industry representatives believe that lower construction costs will improve margins, encourage faster project completions, and create a more investor-friendly environment.
Outlook
The GST reduction marks a landmark reform for India’s construction ecosystem. By slashing tax rates from 28% to as low as 5%, the government is not only easing cost pressures but also fostering growth across allied industries, from cement and natural stone to housing and infrastructure.
For the stone sector, in particular, the reform is expected to strengthen India’s dual role as both a major consumer and a top exporter, further cementing its place in the global supply chain.
