Jamnagar, Gujarat, known as the ‘Brass City’, has long held a unique position in India’s industrial landscape. As the city prepares for the upcoming Central Budget 2026, local industrialists have significant expectations to strengthen this identity further.
With over 8,000 brass units operating in Jamnagar, the industry directly and indirectly employs more than 200,000 people. Considering the growing demand for brass components both domestically and internationally, business leaders believe that with appropriate policy decisions in the budget, Jamnagar can emerge as the world’s largest brass hub.
A key demand from industrialists and trade bodies, particularly the Jamnagar Factory Owners Association, is a reduction in GST rates. Traders point out that the current GST rate on brass products, especially brass scrap, is quite high, which negatively impacts the working capital of small enterprises.
They argue that high GST rates make Indian products less competitive compared to countries like China. Most units in Jamnagar fall under the MSME category, leading industry representatives to also seek easier access to credit, lower interest rates, and interest subsidies.
Ramji Bhai, president of the Factory Owners Association, emphasized the need to reduce capital gains tax to strengthen the brass sector. He highlighted that a 1% TCS on raw materials for brass parts is burdensome for the industry. He also stressed the importance of stabilizing the US dollar, stating that a stable dollar would enable profitable business operations, urging the government to take concrete steps in this direction.
Mehul Jobanputra, secretary of the Factory Owners Association, shared that with approximately 8,000 brass component units providing large-scale employment, the biggest hope from the budget is a GST rate reduction. Currently, brass items attract an 18% GST, and lowering it to 5% could significantly curb bogus billing, which causes losses to both the industry and government revenue.
Kantilal Sorathia, a businessman associated with the brass industry, noted that Jamnagar manufactures parts used in a wide range of sectors, from sewing needles to space technology. He mentioned that important brass and metal components for self-defense systems, automobiles, SUVs, aircraft, and even the space sector are produced here.
He added that just as China has created a supportive environment for small industries, similar policies are needed in India to enable domestic industries to compete globally.
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