As part of the Government of India’s “Azadi Ka Amrit Mahotsav” celebrations, recent Goods and Services Tax (GST) reforms are creating waves of positive change across Arunachal Pradesh — empowering farmers, artisans, and MSMEs by lowering tax rates on key products and services.
Under the new policy, GST on agricultural, horticultural, processed, and artisanal products has been slashed from 12–18% to just 5%. This move reduces prices by 6–11%, enhances producer margins, and boosts the competitiveness of Arunachal’s unique products in national and international markets.
Strengthening Arunachal’s Agrarian Backbone
Over 70% of Arunachal Pradesh’s population depends on agriculture. The GST reduction is a major step in supporting this primary livelihood. For example, the GST on processed Arunachal Orange products like juices and jams now stands at 5%, reducing prices by approximately 6.5%. These GI-tagged fruits from Wakro and Dambuk are already being exported to Dubai and ASEAN markets — and now, with better price competitiveness, exports are likely to rise.
Similarly, Arunachal’s kiwi, produced mainly in Ziro Valley and certified as India’s first organic GI-tagged kiwi, benefits from the same rate cut. Prices of kiwi-based products have dropped, offering better returns to farmers and small businesses aligned with the state’s Kiwi Mission 2025.
Even high-value crops like large cardamom and Adi Kekir Ginger have seen indirect benefits. While GST on spices remains at 5%, lower tax on farming equipment has reduced input costs by up to 13%, boosting profitability for farmers.
Empowering Tribal Handicrafts & Traditional Industries
Arunachal Pradesh’s rich handicraft legacy — from Idu Mishmi textiles to Sherdukpen carpets and Monpa wood carvings — is also seeing a revival. The 5% GST rate on handmade products increases artisans’ earnings and makes their goods more attractive in domestic and international markets.
For example, GST reduction on handmade carpets saves up to ₹1,400 per piece, and on high-end masks, artisans save over ₹1,000. Similarly, the iconic Idu Mishmi shawl now sees a ₹560 reduction on an ₹8,000 piece — making it more affordable and competitive.
Women-led Self-Help Groups and micro-enterprises involved in processed foods like pickles and biscuits now face lower GST rates too — 7% cheaper pickles and 11% cheaper biscuits, directly supporting grassroots entrepreneurship.
MSMEs, Bamboo & Wood-Based Industries Get a Push
With bamboo artisans producing furniture and crafts across the state, the GST cut makes bamboo products ₹625 cheaper on a ₹10,000 set — increasing market demand and encouraging MSME growth. In the wood industry, key to forest-rich Arunachal, a ₹1 lakh plywood lot now saves ₹7,000 in tax — supporting jobs while stressing the need for sustainable forestry practices.
A Holistic Impact
These GST cuts aren’t just economic tweaks — they’re enabling transformations. They make Arunachal’s GI-tagged, organic, and artisanal products more viable in global markets, while also preserving tribal heritage and supporting women, youth, and rural livelihoods.