Indian Pump Industry Backs Govt Measures, Flags Rising Raw Material Costs

Leading pump manufacturing associations have acknowledged steps taken by the Union Government to maintain stability amid ongoing geopolitical uncertainties. At the same time, the industry has outlined key concerns related to rising input costs and suggested policy measures to address current challenges.

To help the sector navigate current volatility, the associations have proposed a set of targeted policy interventions. These include the introduction of a special working capital credit line, temporary relaxation in MSME payment norms, an increase in working capital borrowing limits, and the waiver of safeguard duties on critical raw materials.

The associations also highlighted concerns regarding the sharp increase in raw material prices over the past six months, noting that it has created significant pressure on the MSME-driven pump manufacturing sector.

Over the past year, copper prices have risen by more than 50%, increasing from approximately ₹800–850 per kg to ₹1,200 per kg. Copper accounts for 25–30% of the material cost in several pump categories. In addition, price increases in aluminium, steel, cast iron, polymers, cables, and other inputs have contributed to an overall rise in manufacturing costs exceeding 20%, affecting industry margins.

Industry representatives indicated that continued absorption of rising input costs may create operational challenges, particularly for MSME manufacturers. To address these increases, companies have already initiated a phased price revision of around 10% compared to October 2025 levels, to be implemented before 31 March 2026. Due to ongoing volatility in metal prices and supply conditions, a further price increase in the range of 7.5–10% is being considered effective from April 2026.

The associations also stated that water pumps serve as essential agricultural equipment, supporting irrigation, groundwater management, and rural livelihoods. In this context, they have requested a reduction in GST on water pumps from 18% to 5% to support farmers, maintain organised manufacturing, and encourage adoption of energy-efficient technologies.