How Will GST Reforms Enhance Arunachal Pradesh's Economy?

Synopsis
Key Takeaways
- GST reforms will lower consumer prices on processed foods and textiles.
- Tax reductions enhance profitability for tribal artisans and MSMEs.
- Strengthened access to domestic and export markets.
- Promotion of traditional and GI-tagged products.
- Support for sustainable growth and employment.
New Delhi, Oct 9 (NationPress) The latest GST reforms are set to significantly elevate demand and profitability in Arunachal Pradesh’s key sectors such as agriculture, horticulture, processed foods, handicrafts, textiles, bamboo, and cane furniture, as reported by the government on Thursday.
With lower rates, consumer prices on processed foods are expected to drop by about 6–11 percent, while cost reductions on items like shawls, carpets, plywood, and yak-churpi range from Rs 560 to Rs 7,000. This will enhance profit margins for numerous tribal artisans, self-help groups (SHGs), and micro, small, and medium enterprises (MSMEs), according to an official statement.
Moreover, these reforms will strengthen access to both domestic and export markets, promote traditional and GI-tagged products, and foster sustainable growth, employment, and inclusive development throughout the state.
Arunachal Pradesh is known for producing the GI-tagged Arunachal Orange, which boasts a unique sweet-sour flavor due to its high total soluble solids (TSS) and acidity. The state also processes this fruit into products like dried citrus, juices, and jams/jellies.
The GST reduction from 12 percent to 5 percent on juices and jams leads to a price decrease of 6.5 percent, benefiting processors, minimizing post-harvest losses, and enhancing competitiveness, the statement indicated.
Furthermore, the recent GST cut on kiwi and processed items has lowered prices by approximately 6.5 percent, encouraging MSME participation, supporting value addition, and aligning with the Kiwi Mission 2025, as stated in the release.
Arunachal Pradesh is the largest kiwi-producing region in India, contributing over 50 percent of the national output.
While GST on spices remains at 5 percent, the recent reduction in rates for agricultural inputs like tractors and parts—from 12-18 percent to 5 percent—decreases input costs by 7-13 percent, thus improving profitability for large cardamom growers in Arunachal Pradesh.
Women from the Idu Mishmi tribe in Arunachal Pradesh are renowned for weaving intricate designs filled with mythological symbolism in the Dibang Valley and Lower Dibang, preserving their weaving heritage. Approximately 2,000-3,000 out of the state’s 94,000 weavers depend on this craft for their livelihood. The GST reforms lower taxes by up to Rs 560 on an Rs 8,000 shawl, boosting artisans' profits and safeguarding traditional crafts, the release highlighted.