GST Rate Cuts to Drive Growth and Livelihoods in Nagaland

The recent Goods and Services Tax (GST) rate rationalisation, featuring cuts primarily from 12% to 5% on various local and essential products, is set to significantly boost Nagaland’s economy by improving affordability, enhancing market access, and empowering small enterprises.

Key Sectoral Gains from Rate Reductions

Handicrafts and Handlooms (12% to 5%):
- The GST reduction makes traditional and GI-tagged products like the Naga Shawls, local textiles, and various handcrafted items approximately 6–7% cheaper.
- This directly benefits the state’s handloom and handicraft artisans by increasing the competitiveness of their products in both regional and niche global markets, thereby strengthening rural and tribal livelihoods.
Agro-Processing and Horticulture (12% to 5%):
- GST cuts on local value-added products like processed ginger, king chili (Raja Mircha) pickles, and processed coffee reduce retail prices, encouraging higher consumption.
- This supports the state’s agriculture sector and numerous small food processing MSMEs, improving profitability and market demand for unique local produce.
Bamboo and Cane Products (12% to 5%):
- Products made from bamboo and cane—which are central to the tribal economy—benefit from the reduced GST rate.
- This stimulates demand for locally produced goods, helping to sustain the state’s vital cottage industries and conservation efforts.

Economic Impact

The reforms are expected to lead to increased affordability for the common consumer and improved profit margins for MSMEs and self-help groups. By making local products more competitive against imported goods, the GST cuts reinforce the government’s objective of achieving inclusive economic growth and promoting local enterprise in Nagaland.

Source :- GST-Reforms-2025-How-Nagalands-Economy-Will-Gain-Across-Sectors