GST 2.0 proves a big boon for Indian artisans, sales of handmade products surge

New Delhi (The Uttam Hindu) – The next-generation GST reforms are proving a boon for Indian artisans, boosting sales and incomes, enabling them to compete with factory-made products. Under GST 2.0, taxes on several handicraft products, such as wood carvings, terracotta jute handbags, clothing items, and leather goods, have been reduced.

Assam's Muga silk industry, primarily located in Sualkuchi (Kamrup), Lakhimpur, Dhemaji, and Jorhat districts, is a legacy of women weavers, along with other silk-producing clusters across the state. The reduced GST rate of 5% on handloom and handicraft items will provide relief to weavers, enabling them to earn better margins by selling their products in competitive markets. This will also boost exports. The entire handloom sector in Assam will benefit from the GST reforms. With over 12.83 lakh weavers and approximately 12.46 lakh looms in the state, the impact will be far-reaching.

The reduction in GST rates on handlooms and crafts will also benefit other industries, including Assam Japi, Asharikandi Terracotta, Mishing Handloom, Pani Meteka, and Bihu Dhol. West Bengal has long been known for its traditional crafts and handlooms, ranging from the terracotta temples of Bishnupur to the intricate embroidery of Nakshi Kantha. Reducing GST from 12 percent to 5 percent will directly benefit this sector. The GST reduction is expected to boost Himachal's renowned handloom products, especially shawls and woolen garments. In the Kullu Valley, over 3,000 weavers associated with self-help groups produce the vibrantly patterned, GI-tagged Kullu shawls.

Chamba Rumal is a GI-tagged miniature hand-embroidered fabric, primarily made by women artisans in the Chamba district of Himachal Pradesh. The reduction of GST on these handkerchiefs to 5 percent will increase their demand. Chamba's traditional leather chappals are also GI-tagged products, produced by hundreds of small cottage craft units. Lower GST will make their prices more competitive compared to machine-made shoes and boost sales of indigenous chappals. This will help artisans increase their margins.