GST Cut Boosts Farmers  Income and MSME Competitiveness

Arunachal Pradesh recent GST reforms are set to give a major boost to the state’s economy. The GST rates on key agricultural, horticultural, processed, and handicraft products have been slashed from 12–18% to just 5%. This move has reduced product prices by 6–11%, directly benefiting farmers, artisans, and MSME entrepreneurs.

Over 70% of Arunachal’s population depends on agriculture. The tax reduction has made the state’s major products—such as oranges, kiwis, large cardamom, Adi Kekir ginger, and Yak Churpi (traditional cheese)—more affordable and competitive. The reform is expected to strengthen domestic demand while expanding the reach of these products in international markets.

Boost to Agriculture and Horticulture

GI-tagged oranges, kiwis, and ginger from Arunachal Pradesh have become 6–7% cheaper. For instance, with GST on juices and jams reduced from 12% to 5%, a ₹100 product now costs about ₹7 less. This will help processors cut post-harvest losses, improve profitability, and enhance farmer incomes.

Growth in Handicraft and Textile Sector

Traditional products like Idu Mishmi textiles, Monpa carpets, bamboo and cane furniture, and wooden carvings have also become cheaper due to the GST reduction. A ₹20,000 carpet now saves about ₹1,400 in tax, and a ₹10,000 bamboo furniture piece costs roughly ₹625 less. This is expected to raise artisans’ earnings and preserve traditional crafts.

Support to Processed Food Industry

The MSME sector, particularly those producing biscuits, pickles, and snacks, has gained from the tax cut. Biscuits are now around 11% cheaper and pickles about 7% cheaper. With over 600 registered MSME units employing thousands across the state, this reduction provides a significant economic relief.

Relief for Forest and Wood-Based Industries

Wood-based industries—focused on plywood and veneer—have also benefited. GST reduction from 12% to 5% means a saving of about ₹7,000 per ₹1 lakh worth of goods, boosting competitiveness while encouraging sustainable forestry practices.

Driving Economic Growth and Employment

The GST reform will not only benefit producers but also accelerate Arunachal Pradesh’s overall economic growth. Reduced production costs and enhanced competitiveness are expected to increase demand in both domestic and export markets. The tax cut serves as a vital step toward empowering farmers, artisans, and small enterprises, fueling inclusive development and employment across the state.