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GST 2.0: Boosting livelihoods and growth in UP

Lucknow’s Zardozi craft, supporting 1.5-2 lakh mostly women artisans, and Agra’s heritage marble inlay (Parchinkari) will thrive with reduced GST, boosting affordability, sales, and export potential

New Delhi

The recent GST reforms provide targeted relief to Uttar Pradesh’s diverse economy, covering GI-registered crafts like carpets, brassware, Zardozi, footwear, ceramics, sports goods, and cement. Lower tax rates are expected to increase affordability for consumers, ease working-capital constraints on artisans, and boost MSME competitiveness domestically and internationally, according to an official statement.

Bhadohi carpets, Moradabad brassware, and Saharanpur woodcraft will become 6-7% cheaper, supporting exports and sustaining thousands of artisan jobs. The Bhadohi-Mirzapur-Jaunpur area is a major hub for hand-knotted and handwoven carpets, which will benefit from the GST cut from 12% to 5%, making products more affordable and competitive.

Leather and footwear clusters in the Kanpur-Agra belt, employing 1.5 million workers, will also gain from reduced GST rates, boosting exports and MSME viability. Similarly, Firozabad glassware, Khurja ceramics, and Gorakhpur terracotta crafts will benefit from lower costs, helping fragile clusters and festival demand.

The Zardozi craft in Lucknow, supporting 1.5-2 lakh artisans, mostly women, will flourish with reduced GST, enhancing both domestic and export markets. Agra’s marble inlay craft (Parchinkari), linked to tourism and heritage, will also benefit, as the GST cut will make handicrafts more affordable and boost sales.

Wooden toy and craft clusters in Varanasi, Chitrakoot, Saharanpur, and Rampur, employing thousands of artisans, will gain from the GST cut, improving affordability against plastic products. Sports goods clusters in Meerut and Modinagar will also see demand rise due to lower GST rates.

Finally, the cement industry across Mathura, Mirzapur, Firozabad, and Aligarh will benefit from a GST cut from 28% to 18%, reducing construction costs, improving competitiveness, and encouraging sector growth.

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