The next-generation GST 2.0 rate cuts on several handicraft items from 12 per cent to 5 per cent have come as a major boon for the country's artisans
NEW DELHI — The next-generation GST 2.0 rate cuts on several handicraft items from 12 per cent to 5 per cent have come as a major boon for the country's artisans, as demand for their products has gone up, leading to higher earnings and also enabling them to compete with factory-made goods.
The tax cuts have benefited artisans producing items like wood-carved products, terracotta jute handbags, textile items, and leather goods.
The muga silk industry of Assam, operating mainly in Sualkuchi (Kamrup), Lakhimpur, Dhemaji, and Jorhat, along with other sericulture clusters across the state, is a legacy carried by women weavers. The reduced 5 per cent GST rate on handloom and handicraft items will bring relief to weavers, who can now sell in competitive markets and earn better margins. It will also boost exports, as niche luxury buyers may be more inclined to purchase when prices are marginally lower.
The entire handloom sector in Assam stands to gain from the GST reforms. In a state with more than 12.83 lakh weavers and about 12.46 lakh looms, the impact is far-reaching.
The GST rate cut on handlooms and crafts will also benefit Assam Jaapi, Asharikandi terracotta, Mishing handloom, Pani Meteka, and Bihu dhol, among others.
By lightening the tax load, the reforms will help build stronger markets for traditional handlooms and crafts. This can potentially boost incomes and ensure that handmade Assamese textiles hold their own in an age of factory-made fabrics.
West Bengal has long been known for traditional crafts and handlooms, from the terracotta temples of Bishnupur to the intricate embroidery of Nakshi Kantha. The GST cut from 12 per cent to 5 per cent directly benefits this sector by reducing prices and strengthening its competitiveness against machine-embroidered or mass-produced imitations in domestic and foreign markets such as Europe, the US, and Japan.
The GST reduction from 12 per cent to 5 per cent is expected to lower retail prices, making eco-friendly jute products such as bags more competitive against plastic or synthetic alternatives. This boosts domestic demand in urban markets while also supporting exports. West Bengal is the heart of India’s jute industry, which provides direct employment to over 2.5 lakh workers in organised mills and supports about 40 lakh farming families.
Madurkathi Mats, Purulia Chhau Masks, Wooden Masks, of Kushmandi and Sholapith Craft are the other handicraft items that will benefit from the GST rate cuts.
Himachal’s famed handloom products, especially its shawls and woollen textiles, are expected to get a boost as GST on these products has also been slashed from 12 per cent to 5 per cent. In the Kullu valley, over 3,000 weavers involved in self-help groups produce the brightly patterned, GI-tagged Kullu shawls. These weavers are part of an estimated 10,000-12,000 handloom artisans statewide. The Kinnaur district’s shawl makers and those who derive their livelihood from these handicrafts will also benefit.
The Chamba rumal is a GI-tagged, miniature hand-embroidered cloth, made primarily by women artisans in the Chamba district of Himachal Pradesh, which will see a higher demand due to the cut in GST to 5 per cent for these handkerchiefs. Traditional leather slippers from Chamba are another GI-tagged product, produced by hundreds of small cottage craft units. A lower GST will make their pricing more competitive against machine-made footwear and encourage sales of indigenous chappals. This will help artisans improve their margin.
From intricate wooden doors and panels to furniture, carved wooden products are produced in areas like Chamba, Kinnaur, and Kullu. This industry hires thousands of rural artisans in Himachal. The new GST rates put wooden articles in the 5 per cent category, which will stimulate demand for locally made wooden furniture and souvenirs. It will not only make these items more affordable but also support local artisans. Certain parts of Himachal, which produce bamboo products such as baskets and other eco-friendly crafts, will also gain.