GST rate cuts to boost Uttar Pradesh's craft and industrial clusters

New Delhi [India], October 2 (ANI): The recent Goods and Services Tax (GST) rate rationalisation has extended relief across key sectors, including handicrafts, food products, footwear, toys, textiles and industrial goods. According to a government release on Thursday, the reforms are expected to lower costs for consumers, improve margins for artisans and micro, small and medium enterprises (MSMEs), and strengthen the competitiveness of Uttar Pradesh export clusters.

As per the release, in the Bhadohi-Mirzapur-Jaunpur belt, home to one of the world largest handmade carpet clusters, the tax cut from 12 per cent to 5 per cent is likely to make carpets about 6-7 per cent cheaper. With more than 100,000 looms and over one lakh livelihoods tied to weaving, dyeing and finishing, this change is expected to ease working-capital pressures and strengthen export competitiveness.

Similarly, Agra marble inlay craft, locally known as Parchinkari, is set to benefit. Thousands of artisans who continue to practice this heritage craft could see stronger demand as the reduced tax makes stone products more affordable for tourists and domestic buyers.

Moradabad brassware industry, another major handicraft hub, is also expected to gain from the revised rate. Known for its metal craft exports, the cluster sustains tens of thousands of artisans. The government decision is likely to reduce retail prices by nearly 6 per cent, providing a push during the festival season while improving the profitability of small workshops.

The leather industry, which employs more than 1.5 million people in Uttar Pradesh, is also covered under the reforms. With GST on leather goods and footwear priced up to Rs. 2,500 reduced to 5 per cent, small manufacturers in Kanpur, Agra and Unnao are expected to become more competitive in both domestic and export markets.

Embroidery clusters, especially in Lucknow and Varanasi, where women form a large part of the workforce, are also likely to benefit. With embroidered garments becoming 6-7 per cent cheaper, artisans engaged in Chikankari and Zardozi could find stronger markets in festive and wedding seasons.

Other sectors such as Firozabad glassware, Gorakhpur terracotta, Khurja ceramics, Saharanpur woodwork and Meerut sports goods are similarly expected to gain from lower GST rates. The government said the reforms would help sustain artisan families, improve MSME viability and enhance export competitiveness. (ANI)

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