SDG 8: Decent Work & Economic Growth | SDG 10: Reduced Inequalities
Institutions: Ministry of Finance | Government of Manipur
The Government of India’s GST Reforms 2025 have sharply reduced tax rates on key livelihood sectors, giving a major boost to Manipur’s handloom, handicraft, and agri-based industries. Revised rates, lowered from 12 percent to 5 percent on handloom textiles, bamboo and cane crafts, stoneware, and processed foods, and from 18 percent to 5 percent on packaged coffee, will directly benefit nearly 7 lakh workers across the state. The dairy sector will also gain from a Nil / 5 percent GST on ghee, paneer, butter, and cheese.
With about 2.5 lakh weavers, 1.2 lakh artisans, 1.5 lakh food-processing workers, and 1 lakh dairy farmers, the reforms ease production costs, enhance affordability, and expand market reach for local enterprises. From the hills of Ukhrul and Senapati to the craft clusters of Imphal and Churachandpur, lower taxes are expected to stimulate demand and sustain traditional livelihoods while improving competitiveness in national and export markets.
The new GST structure strengthens the economic base of small producers, women’s self-help groups, and tribal artisans. By reducing tax burdens and encouraging formalisation, it advances inclusive growth and links local entrepreneurship with national supply chains. The measure also complements broader fiscal goals under “Viksit Bharat @ 2047”, ensuring that tax policy supports equity and livelihood security in India’s border and hill economies.
What are the GST Reforms 2025? → A set of rate reductions introduced by the Ministry of Finance to promote affordability, spur local demand, and strengthen small-scale and rural industries, especially in Northeastern and hill states. The reforms lower GST on essential goods such as textiles, crafts, food items, and dairy to make regional products more viable in wider markets.
Relevant Question for Policy Stakeholders:
How can India ensure that GST benefits translate into sustained income growth and long-term competitiveness for small producers in Northeastern states?
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