In a recent reform move, the Punjab government, backed by central policy alignment, slashed the GST rate from 12 % to 5 % across key sectors including textiles, handicrafts, footwear, metalware, dairy, agro-products, and bicycles. The tax relief is expected to reduce retail prices by 6–7 % in food and agro items, making them more affordable while enhancing competitiveness in both domestic and export markets. Traditional crafts, such as Phulkari embroidery, that engage some 20,000 artisans, along with bicycle manufacturing (employing over 40,000 workers), are set to benefit significantly. The reform aims not only to stimulate consumer demand but also to formalise many small and micro producers, strengthen livelihood security, and preserve cultural craftsmanship traditions.
Relevant Question for Policy Stakeholders:
To what extent will the GST cut translate into sustained income gains for artisans and rural producers - and how can price transmission be monitored and safeguarded?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2175668
