GST Reforms Driving Telangana’s Growth: Industry and Artisans
The article outlines how the recent Goods and Services Tax (GST) rate rationalization, primarily through cuts from 18% or 12% to 5%, is set to boost Telangana’s economy by improving affordability, enhancing industrial output, and supporting local artisan clusters.
Key Sectoral Gains from Rate Reductions
- Handlooms and Textiles (12% to 5%):
- The GST reduction makes traditional products like Pochampally Ikat handlooms and other fabrics approximately 6–7% cheaper.
- This directly aids the estimated 4 lakh weavers and artisans, supporting the livelihoods of rural and urban weaving clusters.
- Industrial and Auto Ancillaries (28% to 18%):
- GST rate cuts on industrial inputs like cement (reduced from 28% to 18%) and auto components lower construction costs and ease operational expenditure for the state’s major manufacturing and infrastructure sectors.
- This is expected to stimulate demand in housing and capital projects, strengthening the Hyderabad-based industrial ecosystem.
- Handicrafts and Agro-Processing (12% to 5%):
- Traditional crafts like Dokra metal craft and Bidriware benefit from the reduced tax, increasing their competitiveness in domestic markets.
- The tax cut on local agro-processed goods (like spices, pickles, and millets) reduces retail prices, supporting the farmer-to-market value chain.
Economic Impact
The reforms are expected to inject economic momentum by improving affordability for consumers and easing working capital pressures on MSMEs. This reinforces Telangana’s position as a dynamic hub for both traditional craftsmanship and modern industry.
Source :- Driving-Telangana-Forward-GST-Powers-Industry-and-Artisans