Ladakh's Economy Boosted by GST Reforms: Benefits for Pashmina, Handicrafts, and Tourism Sectors

The reduction in GST rates could significantly improve exports of Pashmina wool from Changthang region.

New Delhi:

The government announced on Wednesday that Goods and Services Tax (GST) reforms will reduce costs and expand markets for Ladakh's artisans, farmers, and tourism operators, while protecting traditional local crafts.

According to an official statement, rate reductions from 12 percent to 5 percent will enhance the competitiveness and affordability of authentic Pashmina, handwoven woollens, Thangka paintings, and products made from apricot and sea buckthorn.

The GST reduction could boost exports of Pashmina wool from the Changthang region, supporting the livelihoods of more than 10,000 nomadic herders. This tax cut is expected to increase the competitiveness of genuine Ladakhi pashmina compared to imported or machine-manufactured alternatives.

Production expenses for handwoven woollens and Namda rugs in Leh and Kargil are anticipated to decrease, encouraging the revival of traditional handicraft techniques.

The GST reduction from 12 percent to 5 percent on hotel rates up to Rs 7,500 per night makes travel and accommodation more affordable, especially during peak tourist seasons. This will support the growth of eco-tourism and the local homestay economy.

Traditional Ladakhi carpentry and Thangka paintings from monasteries will benefit from improved price competitiveness. Ladakhi Thangka paintings, typically created in monasteries in Leh, Alchi, and Hemis, are traditional Buddhist scroll artworks used for meditation and decoration.

The GST reduction benefits over 6,000 farming families involved in apricot cultivation and processing by enhancing the competitiveness of locally produced apricots and their value-added products, such as dried apricots, jams, and oils, making them more marketable. Ladakh is India's largest apricot producer, with Kargil, Leh, and the Nubra Valley being the main production centers.

Additionally, the reforms will strengthen markets for sea buckthorn products primarily produced by women-led self-help groups. Yak cheese, Leh berry health drinks, supplements, and organic farm products are other items positively affected by the GST reforms.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)