New Delhi, Sep 28 (NationPress) The GST 2.0 rate reductions are poised to significantly enhance the economy of Madhya Pradesh across various sectors. This initiative is expected to translate into increased incomes for artisans and a more robust MSME sector as competitiveness rises due to lower input costs and a surge in consumer demand driven by decreased prices.

From the weavers in Maheshwar to the artists in Mandla, as well as the cement workers in Satna and the footwear manufacturers in Dewas, these reforms are set to create a substantial impact on both rural and urban livelihoods. By lowering tax burdens and creating new market opportunities, these adjustments resonate with the aspirations of Atmanirbhar Bharat and Viksit Bharat 2047, positioning Madhya Pradesh as a key beneficiary of the GST reforms, as stated in an official announcement made on Sunday.

The economy of Madhya Pradesh is deeply intertwined with agriculture, crafts, and industry, from the bustling food streets of Indore to the cement production centers of Satna and the looms of Maheshwar. The latest rationalization of GST rates is anticipated to reduce costs across these sectors, making essential goods more affordable for families and enhancing competitive capabilities for producers.

These reforms are projected to provide substantial support to farmers, artisans, MSMEs, and large-scale industries, paving the way for new avenues of growth and employment, as highlighted in the statement.

Indore, a GI-tagged center for snacks like sev, laung sev, mixture, and chivda, supports nearly 100,000 direct jobs and 250,000 indirect jobs, with exports reaching markets in the Middle East, UK, and US. With the GST on 'namkeens' slashed from 12% to 5%, the prices of these products are expected to drop, promoting increased domestic sales and boosting export competitiveness.

Industrial clusters in Dewas, Indore, and Gwalior, which encompass both large factories and small workshops, employ approximately 40,000 direct workers and 120,000 indirect workers. The reduction of GST on footwear priced up to Rs 2,500 from 18% to 5% is likely to lower prices by about 11%, enhancing affordability for both rural and urban households, supporting the livelihoods of small artisans, and fortifying Madhya Pradesh’s footwear industry against synthetic alternatives.

As India’s second-largest producer of soybeans, Madhya Pradesh also stands as an important center for agro-mechanization. MSMEs in clusters across Indore, Bhopal, Dewas, Gwalior, Ujjain, and Vidisha manufacture essential farming tools such as seed drills, threshers, harvesters, and irrigation pumps. With GST on tractors, pumps, and implements reduced from 12% and 18% to 5%, modern farming equipment has become more accessible to small and marginal farmers, enhancing the competitive edge of local MSMEs against foreign imports.

The state is also home to a variety of traditional crafts, many of which carry GI tags and enjoy international recognition.

The Maheshwari handloom industry in Khargone district sustains approximately 8,000 weavers across 2,600 looms, with women playing crucial roles in winding, spinning, and dyeing. This craft is steeped in rich history, with exports reaching Europe and the US, often facilitated by NGOs and boutique partnerships.

Wooden lac toys, primarily produced in Budhni (Sehore), Ujjain, and Gwalior, are valued for being eco-friendly alternatives to plastic. These toys are now more affordable thanks to the GST rate cuts, expected to boost sales and increase artisans’ earnings.

Artisans in Mandla, Betul, Ujjain, and Tikamgarh, renowned for their terracotta toys, idols, and decorative pieces, are also set to benefit from the reduction in GST on these goods.

Furthermore, bamboo and cane handicrafts, along with brassware, will experience a surge in prosperity due to the GST reductions. With GST on brassware reduced from 12% to 5%, prices are projected to decrease by around 6%, enabling artisans to better compete against stainless steel and aluminum substitutes while enhancing export potential.

In the industrial sector, Madhya Pradesh ranks as India's leading cement producer, with major hubs located in Satna, Katni, Damoh, and Rewa. This sector generates about 50,000 direct jobs and over 200,000 indirect jobs in related fields such as mining, transport, and contracting. The reduction of GST from 28% to 18% is expected to lower the price of a 50-kg cement bag by Rs 25-30, stimulating demand in housing and infrastructure projects while bolstering the competitiveness of local producers.

Additionally, the sandstone production centers in Gwalior, Shivpuri, and Tikamgarh, which serve both domestic and international markets, particularly in Europe, the US, and the Gulf region, are positioned for significant growth.