New Delhi, Sep 30 (NationPress) The recent GST rate reductions, which took effect on September 22, are set to significantly enhance economic growth in Andhra Pradesh. This growth spans various sectors, including the fishing harbors of Visakhapatnam, the automotive hubs of Anantapur and Chittoor, as well as the coffee plantations in Araku Valley and the craft clusters of Kondapalli and Etikoppaka, according to an official statement released on Tuesday.

The decrease in tax rates will lower consumer prices, ease working capital for MSMEs, and enhance market competitiveness for exporters. The effects will be evident across fisheries, dairy, automotive, pharmaceuticals, medical devices, renewable energy, handicrafts, and daily necessities.

In 2022–23, Andhra Pradesh was responsible for 41 percent of India's fish production. This sector represents 7.4 percent of the state's GSDP and employs approximately 14.5 lakh individuals across its nine coastal districts.

With the GST cut from 12 or 18 percent to 5 percent on items like fish oils, extracts, preserved products, fishing gear, diesel engines, pumps, aerators, and essential chemicals, input costs will decrease, providing relief to small processors and traditional fishing communities. Andhra Pradesh contributes over 30 percent of India's seafood exports, mainly shipped from Visakhapatnam Port to markets in the US, China, the EU, Southeast Asia, and the Middle East. These reforms are expected to enhance affordability, increase global trade competitiveness, and improve livelihoods along the coastline of the state, as stated.

In terms of dairy, Andhra Pradesh ranks fourth nationally in milk production and supports 24 lakh farmers, many of whom are women involved in self-help groups and cooperatives. Renowned brands like Heritage and Vijaya have established collection, chilling, processing, and retail networks throughout the region.

The GST reduction to zero on UHT milk and paneer, and from 12 percent to 5 percent on ghee and butter, along with a cut from 18 percent to 5 percent on ice cream, will lower costs for consumers. This will stimulate demand and generate increased income for dairy farmers and SHG-led cooperatives in districts such as Krishna, Srikakulam, West Godavari, East Godavari, Guntur, Chittoor, and Vizianagaram.

Andhra Pradesh has also emerged as a significant auto hub, hosting major plants of Kia, Isuzu, Hero, and Ashok Leyland, along with over 100 auto-component MSMEs in districts like Anantapur, Chittoor, Visakhapatnam, and Nellore. The sector employs more than 11,000 individuals, including skilled technicians, ITI diploma holders, and engineers. The GST cuts have made three-wheelers, small cars, and motorcycles (up to 350cc engine capacity) more affordable, which is expected to increase consumer demand and alleviate working capital strains for manufacturers, thereby bolstering the competitiveness of Andhra's auto exports to Europe, the US, and South Korea, as per the statement.

In the pharmaceutical sector, the state hosts over 250 bulk drug and API units across Anakapalli, Visakhapatnam, Atchutapuram, Naidupeta, and Pydibhimavaram. This sector employs more than 89,000 highly skilled workers, supporting both manufacturing and R&D.

GST cuts from 12 percent to nil on 30 cancer drugs, and from 12 percent to 5 percent on personal-use medicines, make healthcare more affordable across India. Global firms such as Dr Reddy’s, Aurobindo Pharma, GSK, Lupin, and Biocon operate in the state, with exports, especially to the USA (52 percent), South Africa, and China, reinforcing Andhra's stature as a pharmaceutical powerhouse.

The state’s AP MedTech Zone (AMTZ) in Visakhapatnam is home to over 100 manufacturing units focused on medical devices, diagnostics, and healthcare technologies. With GST reduced from 18 percent to 5 percent on devices like thermometers and medical equipment, and from 12 percent to 5 percent on other medical apparatus, healthcare has become more accessible and affordable for domestic patients, while also bolstering Andhra Pradesh's exports to over 80 countries.

With capacity increasing more than seven-fold from 2014 to 2024, clusters in Kurnool, Kadapa, and Anantapur have positioned the state as a leader in renewable energy adoption. The GST cuts are expected to further propel this sector.

Additionally, the handicrafts sector in Andhra Pradesh stands to gain from these GST reductions. The state is renowned for its GI-tagged Etikoppaka & Kondapalli Toys, stone carvings, and leather puppetry, all of which are anticipated to benefit from these changes, as stated.