As part of Azadi Ka Amrit Mahotsav, the Government of India has announced a comprehensive GST rate rationalisation aimed at empowering farmers, artisans, entrepreneurs, and industrial workers across Uttarakhand. The move is expected to energise the state’s economy — from terraced farms in Chamoli and Almora to industrial hubs in Rudrapur and Haridwar — while supporting the state’s vision of sustainable and inclusive growth.
Boost for Hill Agriculture and Local Produce
Uttarakhand’s traditional farming systems — known for their organic and climate-resilient practices — have received a major boost. The GST on Pahari Toor Dal, Red Rice, and Almora’s GI-tagged Lakhori Mirchi has been cut from 12% to 5%. This will make these unique hill products more competitive in both domestic and health-conscious export markets.
For small and marginal farmers spread across 13 hill districts, this tax relief means better farm-gate prices and wider market access. The measure is expected to benefit thousands of farmers cultivating these crops under the traditional Barahnaja system, reinforcing Uttarakhand’s status as a hub for organic and sustainable agriculture.
Tourism and Cottage Industry Revival
Tourism remains one of the cornerstones of Uttarakhand’s economy, contributing over 13% to the state’s GSDP. The GST reduction on hotel tariffs up to ₹7,500 — from 12% to 5% — is a significant relief for nearly 80,000 people engaged in tourism and hospitality. Visitors to Nainital, Mussoorie, Auli, Rishikesh, and Munsyari can now expect more affordable stays, boosting occupancy and local employment.
The reform also benefits traditional handicrafts and women-led cottage industries. Aipan art, Ringal bamboo craft, and hand-knitted woollen products have all moved to a 5% GST slab. These crafts, deeply rooted in Uttarakhand’s cultural identity, support thousands of women artisans and rural families. The lower GST will enhance demand for handmade products such as shawls, stoles, and decorative crafts, helping preserve heritage while expanding digital and tourism-linked markets.
Strengthening Industrial and Manufacturing Growth
The state’s manufacturing base — from food processing to automobile and medical device production — is also set to gain. The GST cut from 12% to 5% on food products will encourage value addition and investment in fruit processing, herbal goods, and organic foods. This reform benefits the state’s 383 registered food processing units employing over 30,000 people.
In the automobile sector, a GST reduction from 28% to 18% on small and mid-sized vehicles (up to 1200cc petrol and 1500cc diesel) will make vehicles 8–10% cheaper. This measure is expected to stimulate demand and sustain over 50,000 jobs in the industrial clusters of Pantnagar, Rudrapur, and Haridwar.
Similarly, the Medical Device Park in SIDCUL will benefit from a GST cut from 12% to 5%, lowering production costs and boosting India’s MedTech competitiveness. The park currently employs around 4,000 people and serves as a growth engine for healthcare manufacturing in the region.
Conclusion
The GST rationalisation marks a major step toward empowering hill farmers, reviving tourism, supporting artisans, and energising Uttarakhand’s industries. By reducing tax burdens and promoting local entrepreneurship, these measures bridge the divide between the mountain and the market — strengthening livelihoods, enhancing competitiveness, and fostering Atmanirbhar Uttarakhand.