OCT 07: The recent GST reforms, reducing rates from 12% to 5% on key goods, are set to transform Punjab’s economy by making products more affordable, competitive, and export-ready, while strengthening livelihoods across the state.
The reforms cover textiles, handicrafts, footwear, metalware, dairy, agro-products, and bicycles, lowering production and retail costs, stimulating demand, and supporting employment. Phulkari embroidery, a GI-tagged craft from Amritsar and Patiala, benefits around 20,000 women artisans, while Ludhiana’s woollen shawls and stoles industry employs nearly 25,000 workers. Hand-block printed fabrics, women’s cotton kurtas, and Punjabi juttis also gain competitiveness in domestic and global markets, safeguarding artisan incomes.
In metalware, stainless steel utensils and brass/copper products produced in Jalandhar and Ludhiana now enjoy a significant cost advantage, improving MSME viability and export potential. In the food and agro sector, dairy products, paneer, honey, pickles, papad, wadi, namkeen, and mithai see prices drop by 6–7%, benefiting over 40,000 workers in rural and small-scale enterprises.
Bicycle manufacturing in Ludhiana, employing more than 40,000 people, is expected to gain from lower GST, boosting sales in domestic schemes and international markets.
Overall, the reforms not only stimulate domestic consumption and export growth but also formalise supply chains, preserve Punjab’s traditional crafts, and enhance incomes for artisans, farmers, and MSME workers. By reducing tax burdens, the government reinforces Punjab’s position as a hub of craftsmanship, agriculture, and manufacturing excellence, fostering economic growth, employment generation, and inclusive development.
