GST Reforms Unlock Economic Potential in Jharkhand
The article outlines how the recent GST rate rationalization, primarily through cuts from 12% to 5%, is set to boost Jharkhand’s economy by enhancing affordability, fostering industrial growth, and empowering tribal and rural livelihoods.
Key Sectoral Gains from Rate Reductions
- Forest and Agro-Products (12% to 5%): GST cuts on locally processed items such as lacquer craft, honey, tussar silk, and processed food (like pickles and spices) make products 6–7% cheaper. This directly supports the income of rural and tribal communities heavily dependent on forest resources and small agro-processing units.
- Handicrafts and Handlooms (12% to 5%): Traditional and GI-tagged products like Dokra metal craft and Tussar silk handlooms benefit from the reduced tax, increasing their competitiveness in domestic markets and boosting global exports. This supports over 1 lakh artisans and weavers across the state.
- Mineral and Industrial Sector (28% to 18%): GST rate cuts on essential industrial inputs like cement (reduced from 28% to 18%) and machinery components lower construction costs and ease operational expenses for key industries. This is expected to stimulate demand in infrastructure and housing projects, strengthening Jharkhand’s mineral-rich industrial base.
- Coal and Mineral Transport: While not explicitly a rate cut, the reforms are expected to improve the efficiency of the supply chain for coal and other minerals—the backbone of the state’s economy—by simplifying documentation and reducing compliance costs for the transport sector.
Economic Impact
The reforms are positioned to accelerate business activity, reduce the effective cost of living for consumers, and bring higher sales volumes, reinforcing Jharkhand’s goal of achieving inclusive and formal economic growth.
Source :- GST-Reforms-Unlock-Economic-Potential-in-Jharkhand