GST Rate Cuts: Empowering Manipur’s Economy Across Sectors
The recent GST reforms of 2025, primarily featuring rate cuts from 12% or 18% down to a uniform 5% on many local products, are set to drive growth and empower livelihoods in Manipur by boosting affordability and market competitiveness.
Key Sectoral Benefits from Rate Reductions
- Handloom and Textiles (12% to 5%):
- The GST reduction on handloom woven fabrics directly improves affordability, benefiting approximately 2.5 lakh weavers, mostly women, who craft traditional products like Phanek and Innaphi.
- The price cut enhances the global appeal and strengthens the market position of Manipur’s unique handloom textiles.
- Handicrafts and Artisanal Products (12% to 5%):
- Items made from bamboo and cane, as well as stone carvings and sculptures, now face a lower GST rate.
- This makes products approximately 6–7% cheaper, stimulating demand in both domestic markets and supporting the income of roughly 1.2 lakh artisans.
- Agro-Processing and Food (18%/12% to 5% or Nil):
- The GST on processed foods (such as pickles, bamboo shoots, and fermented foods) was reduced from 12% to 5%, directly benefiting an estimated 1.5 lakh workers in the food processing sector.
- Tax on packaged coffee (like Arabica) was cut from 18% to 5%.
- Dairy products like ghee, butter, paneer, and cheese now attract a GST of Nil/5%, making them more affordable for consumers and improving profit margins for over 1 lakh dairy farmers and cooperatives.
Economic Impact
These targeted rate cuts are expected to stimulate demand, formalize supply chains, and secure traditional livelihoods, ensuring that economic growth in Manipur is both balanced and inclusive.
Source :- GST-Reforms-2025-How-Manipurs-Economy-Will-Gain-Across-Sectors