Page 66 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Argentina, for exploration and mining of five Lithium Brine Blocks in Argentina covering an area
of 15703 Ha.

GST Rationalisation to Accelerate India’s Green Transition

India's commitment to sustainability and climate action has been reinforced through recent GST
rationalization, strategically reducing tax rates on waste management services, biodegradable products
and green transportation.

Under the visionary leadership of Prime Minister Shri Narendra Modi, these reforms are designed to
accelerate the adoption of eco-friendly manufacturing, strengthen waste treatment infrastructure and
promote sustainable mobility solutions. Aligned with national initiatives like ‘Viksit Bharat 2047’ and the
LiFE (Lifestyle for Environment) movement, these changes support India’s Net Zero 2070 ambition and
fulfil commitments under the Paris Agreement.

Strengthening Waste Management: Common Effluent Treatment Plants (CETPs)

The reduction in GST from 12% to 5% on services provided by CETPs is a significant move for
environmental sustainability.

? Cost Savings for MSMEs: Lowering the tax burden makes collective waste treatment more
attractive to small and medium enterprises, which often struggle with individual management
costs.

? Scale of Impact: With 222 operational CETPs treating 2212 MLD of industrial wastewater across
21 states, the tax reduction is estimated to save industries approximately ?13.27 Cr/day.

? Circular Economy: This reform supports the 53 CETPs already implementing Zero Liquid
Discharge (ZLD) systems, promoting the reuse of treated wastewater and reducing freshwater
dependency.

Combating Plastic Pollution

Biodegradable alternatives to reinforce the national ban on identified single-use plastics, GST on
biodegradable bags has been slashed from 18% to 5%.

? Enhanced Affordability: The sale price of compostable carry bags is expected to drop by
approximately 11% (from ?200/kg to ?178/kg), making eco-friendly alternatives competitive
with conventional plastic.

? Protecting Marine Ecosystems: This measure directly supports Ministry-led beach cleaning
drives, such as those conducted on International Coastal Clean-Up Day, by reducing plastic
leakage into rivers and oceans.

? Industry Growth: The reform encourages over 200 certified compostable manufacturers to scale
up production of starch-based and compostable materials.

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