GST Rate Cuts Empower Farmers, Artisans, and MSMEs in Arunachal Pradesh

GST Rate Cuts Empower Farmers, Artisans, and MSMEs in Arunachal Pradesh

The recent Goods and Services Tax (GST) rate rationalization, primarily through cuts from 12% to 5% across various products, is set to boost Arunachal Pradesh’s economy by improving affordability, market access, and strengthening local industries.

Key Sectoral Benefits from Rate Reductions

• Handicrafts and Textiles (12% to 5%):
  • The GST reduction makes traditional and GI-tagged products like Monpa Wooden Bowls, Apatani handloom shawls, and various handcrafted items approximately 6–7% cheaper.
  • This directly aids the state’s estimated 2 lakh artisans by increasing the competitiveness of their products in both domestic and niche global markets, thereby securing livelihoods in rural and tribal communities.
• Food and Agro-Processing (12% to 5%):
  • The GST reduction on local value-added products like processed kiwis, ginger, and large cardamoms reduces retail prices, encouraging higher consumption.
  • This supports the state’s agriculture sector and the numerous small food processing MSMEs, improving profitability and market offtake for farmers.
• Bamboo and Cane Products (12% to 5%):
  • The tax cut on a wide range of products made from bamboo and cane—which are central to the tribal economy—makes them more affordable.
  • This stimulates demand for locally produced goods, helping to sustain the state’s vital cottage industries.

Economic Impact

The reforms are expected to lead to increased affordability for consumers and improved profit margins for MSMEs and self-help groups. By making local products more competitive, these GST cuts reinforce the government’s focus on boosting local “Made in Arunachal” products.