SDG 8: Decent Work and Economic Growth | SDG 12: Responsible Consumption and Production
Institutions: Government of Chhattisgarh | Ministry of Finance
The Chhattisgarh state government has announced GST rate reductions (5–18 %) across multiple sectors including handlooms, handicrafts, dairy, and cement. The policy is intended to lower costs, stimulate demand, and revive livelihoods in both rural and industrial segments. Key sectors affected include:
Cement: GST cut to 18 %, expected to reduce construction costs and preserve 20,000–30,000 jobs in the sector.
Handlooms / Tribal Crafts: Cut to 5 %, expected to raise demand by 10–15 % and generate ~5,000 jobs by 2026, with special emphasis on women-led SHGs.
Dairy: Packaged dairy goods’ GST reduced to 5 %, projected to support 15,000–20,000 jobs and help scaling of processing.
These measures are part of an inclusive growth agenda aiming to link traditional skills, rural entrepreneurship, and formalization.
By selectively reducing GST in sectors with strong rural linkages, Chhattisgarh seeks to align fiscal policy with livelihood promotion, formalization, and value-chain competitiveness. The rate cuts can help artisans, cooperative societies, and local dairy networks access larger markets and formal credit. For the Centre, such state-level moves offer insight into fiscal flexibility, equity in taxation, and incentivizing inclusive industrialization across geographies.
Relevant Question for Policy Stakeholders:
Can India’s GST framework evolve to allow states greater flexibility in rate differentiation for employment-intensive rural sectors without compromising national revenue balance?
Follow the full news here: From Cement to Handloom