As India celebrates Azadi Ka Amrit Mahotsav, the transformative impact of the Goods and Services Tax (GST) reforms is being felt across the country — and nowhere more visibly than in Jharkhand. Rich in minerals, forests, and cultural heritage, this eastern state is emerging as a major economic force thanks to key GST rate cuts that enhance affordability, promote industry, and empower local communities.
Boost to Steel and Heavy Engineering
Jharkhand’s identity as an industrial powerhouse is rooted in its steel and heavy engineering sectors. With hubs like Jamshedpur and Bokaro, and giants like Tata Steel and SAIL, the state contributes 20–25% of India’s total steel output. These industries employ over 1 lakh people, with MSMEs and vendors forming the backbone of supply chains.
The recent GST rate reductions have directly benefited this ecosystem:
- Two-wheelers (≤350cc): 28% → 18%
- Tractors (≤1800cc): 12% → 5%
- Auto components: 28% → 18%
These tax cuts have lowered costs in the auto and machinery sectors by up to 11%, increasing demand and boosting capacity utilization. The ripple effect is clear: more jobs, greater MSME engagement, and a stronger industrial economy.
Empowering Iron-Based Industries
With 26% of India’s iron ore reserves, Jharkhand’s iron industry is both vast and vital. Areas like West Singhbhum and Kolhan house major mining operations and community-run enterprises producing kitchenware, stoves, and tools.
GST on iron has been reduced from 12% to 5%, improving margins and reducing product costs by approximately 6.25%. This enhances competitiveness in both domestic and export markets, particularly in Asia and Europe, while boosting employment and income for tribal and rural communities.
Support for Farmers and Food Processing
Agriculture, which supports over 50% of Jharkhand’s workforce, now stands to benefit from targeted reforms. The GST on processed foodgrains has been cut from 12% to 5%, reducing input costs and improving farm profitability.
This change promotes value addition, encourages rural enterprises, and increases income stability, particularly in districts like Ranchi, Palamu, and Hazaribagh where small and marginal farmers dominate.
Forest-Based Livelihoods Strengthened
Jharkhand’s forests cover nearly 30% of its area, sustaining around 20 lakh tribal and forest-dependent workers. The state produces tendu leaves, honey, bamboo, and lac — essential for both domestic consumption and export.
GST reforms have slashed rates on:
- Tendu leaves: 18% → 5%
- Bamboo: 12% → 5%
These reductions increase profitability by up to 11%, safeguarding livelihoods and enhancing the economic viability of the forest produce sector.
Tourism Gets a Welcome Push
From Deoghar’s Baidyanath Dham to the scenic hills and waterfalls of Ranchi, Jharkhand offers a rich blend of spiritual, cultural, and eco-tourism. The GST cut on hotel stays (₹7,500/night or less) from 12% to 5% makes travel more affordable.
Lower taxes on food and hospitality services also benefit local homestays, guides, and artisans, supporting inclusive tourism and community development.
Conclusion
The latest GST reforms are a turning point for Jharkhand. From minerals to machines, farms to forests, and temples to tourist trails — every sector stands to gain. These reforms not only revive traditional industries and modern enterprises but also unlock new employment avenues, deepen rural-urban linkages, and enhance Jharkhand’s competitiveness on the global stage.
As India marches towards its centenary of independence, Jharkhand is rising, stronger and more self-reliant — truly embodying the spirit of Azadi Ka Amrit Mahotsav.