In a significant development for the agricultural sector, the government has announced a substantial reduction in Goods and Services Tax (GST) rates for agricultural equipment. This move is expected to have positive implications for major players in the agricultural machinery industry, including Mahindra & Mahindra Ltd (M&M), a leading manufacturer of tractors and farm equipment in India.

GST Reduction: A Boost for the Agricultural Sector

The recently announced GST cut on agricultural equipment is aimed at supporting farmers and boosting the agricultural sector. While the specific details of the rate reduction have not been disclosed, industry experts anticipate that this move will make agricultural machinery more affordable for farmers, potentially stimulating demand in the sector.

Potential Impact on Mahindra & Mahindra

Mahindra & Mahindra, with its strong presence in the agricultural equipment sector, stands to benefit from this tax reduction. The company is well-known for its range of tractors and farm machinery, which form a significant part of its product portfolio.

Key Points to Consider

1. Increased Affordability: The GST reduction is likely to make M&M's agricultural equipment more accessible to farmers, potentially driving sales volume.

2. Market Share: As a major player in the agricultural equipment sector, M&M could leverage this opportunity to strengthen its market position.

3. Rural Economy Boost: The move may stimulate the rural economy, indirectly benefiting M&M's automotive division, which has a strong presence in rural markets.

4. Supply Chain Advantages: M&M's established supply chain and distribution network in the agricultural sector could allow it to quickly capitalize on increased demand.

While the exact impact of this GST reduction on Mahindra & Mahindra's business remains to be seen, it presents a potentially positive outlook for the company's agricultural equipment division. Investors and industry watchers will be keen to observe how M&M leverages this opportunity in the coming months.

As the agricultural sector adapts to these new tax rates, companies like Mahindra & Mahindra are expected to play a crucial role in supporting farmers with more affordable and accessible equipment, contributing to the overall growth and modernization of India's agricultural landscape.

Mahindra & Mahindra 's cleantech arm, Mahindra Susten, has announced a significant leadership change that promises to drive its growth in the renewable energy sector. Avinash Rao has been appointed as the new Managing Director & Chief Executive Officer, effective September 24, 2025, marking a new chapter in the company's journey towards sustainable energy solutions.

Strategic Appointment to Fuel Growth

Rao brings nearly three decades of experience in the energy sector, spanning conventional energy, power transmission, and renewable energy. His appointment comes at a crucial time for Mahindra Susten, which has established itself as a leading independent power producer (IPP) in India. With over 1.60 GW of commissioned projects and a robust pipeline of nearly 3.60 GW across solar, wind, hybrid projects, and commercial & industrial solutions, the company is poised for significant expansion.

Expertise Across the Energy Value Chain

Dr. Anish Shah, Group CEO & MD of Mahindra Group, emphasized the strategic importance of this appointment, stating, "Avinash's deep expertise across the entire energy value chain—from platform creation to investment and operational excellence—will enable us to create long-term value for our stakeholders while accelerating the transition to a cleaner energy future."

Rao's most recent role was as CEO of Sustainable Energy Infra Investment Managers, where he managed India's largest pure-play Renewable Energy InvIT listed on the National Stock Exchange. His experience in building energy platforms from scratch across multinational utilities, infrastructure funds, and NSE-listed InvITs is expected to be invaluable in his new position.

Mahindra Susten's Ambitious Plans

Mahindra Susten is actively building capabilities in emerging areas such as energy storage and integrated renewable energy solutions. It aims to set benchmarks in reliable supply of clean energy, safety, diversity, quality, governance, and ESG practices.

Investor Confidence

The appointment has been welcomed by Ontario Teachers' Pension Plan, a long-term investor in Mahindra Susten. Bruce Crane, Executive Managing Director and Head of Asia-Pacific at Ontario Teachers', expressed enthusiasm about the ongoing partnership and Mahindra Susten's role as a key player in India's renewable energy sector.

Looking Ahead

As Avinash Rao prepares to take the helm, Mahindra Susten appears well-positioned to accelerate its growth, drive innovation, and expand its diversified renewable portfolio. The company's commitment to sustainability and climate action aligns closely with the Mahindra Group's broader vision, setting the stage for potentially transformative developments in India's renewable energy landscape.

With this strategic appointment, Mahindra Susten reinforces its commitment to leading India's renewable energy transition, promising an exciting future for the company and the sector as a whole.