As India celebrates Azadi Ka Amrit Mahotsav, marking 75 years of independence, the recent Goods and Services Tax (GST) rationalisation stands out as a step toward economic empowerment—especially for states like Mizoram. Known for its pristine landscapes, organic produce, and vibrant cultural identity, Mizoram is now poised to reap the benefits of tax reforms aimed at driving inclusive and sustainable growth.
One of the most impactful changes is the reduction of GST from 18% to 5% on processed Mizo Bird’s Eye Chilli, turmeric, and ginger—three cornerstone crops for the state’s farmers. The Mizo chilli, a GI-tagged product, is not only a symbol of cultural pride but also a significant source of income, especially in Lunglei, Siaha, and Lawngtlai districts. The lower GST rate makes these processed spices more affordable and attractive for both domestic and global markets, with formal exports already reaching countries like the United States.
Similarly, ginger and turmeric—grown extensively across Mizoram—now enjoy reduced taxation on their processed forms. With Mizoram producing over 90,000 tonnes of these two crops in 2024–25, the change is expected to lower input costs for spice processors and increase earnings for farmers, while also giving a competitive edge to organic exports.
Another key area benefitting from GST rationalisation is fruit processing. Mizoram, India’s third-largest producer of passion fruit, has seen a rise in local units making juices and concentrates. With GST on these products brought down to 5%, this reform supports small entrepreneurs, women’s groups, and food processing units in expanding their market reach and creating jobs.
In the craft sector, the reduction of GST to 5% on all bamboo and cane products is a boost for Mizoram’s artisans. With bamboo covering over half the state’s land area, and handicrafts forming a vital part of rural livelihoods, this move will promote eco-friendly crafts, enhance domestic demand, and support artisan incomes. From handmade furniture to utility items, Mizoram’s bamboo crafts can now compete more effectively across Indian and global markets.
Tourism too is set for a revival. Mizoram welcomed over 215,000 domestic tourists in 2023–24, and with hotel rooms priced up to ₹7,500 now taxed at just 5%, travel becomes more accessible. The hospitality sector, already employing thousands, stands to gain from increased occupancy and investment, creating more opportunities in transport, food services, and local experiences.
In essence, GST rationalisation is not just a tax cut—it’s a development catalyst. By easing financial pressure on farmers, artisans, processors, and hoteliers, these reforms pave the way for a more resilient and prosperous Mizoram. As the state blends tradition with innovation, these changes will help drive rural livelihoods, promote exports, and contribute to India’s larger vision of inclusive growth.