SDG 8: Decent Work & Economic Growth | SDG 12: Responsible Consumption & Production
Institution: Ministry of Finance | Government of Uttarakhand
The Ministry of Finance has approved a series of GST rate reductions to boost key sectors in Uttarakhand:
GST on hill-produce such as Pahari toor dal, red rice and GI-tagged Lakhori mirchi reduced from 12 % to 5 %.
GST on hotel tariffs up to ₹7,500 reduced from 12 % to 5 %, benefiting around 80,000 tourism-related jobs.
Tax on handicrafts (Aipan art, Ringal bamboo craft, woollen garments) moved to 5 % from 12 %, supporting local women-led craft producers.
GST on vehicles (up to 1200cc petrol / 1500cc diesel) reduced from 28 % to 18 %, expected to lower prices by 8–10 %.
GST on medical-devices reduced from 12 % to 5 %, strengthening the state’s med-tech industry in the hill region.
These rate cuts are a strategic use of fiscal-policy to catalyse growth in a mountainous region with specialty agriculture, tourism, handicrafts and nascent manufacturing. By lowering tax burdens on local products and services, the move aims to enhance competitiveness of Uttarakhand’s economy, generate informal and formal employment, and re-align the state’s production chain to local strengths. Moreover, targeting tourism and craft sectors supports inclusive growth, especially women-led micro-enterprises, while the vehicle and med-tech tax cuts signal industrial up-gradation in the region.
Relevant Question:
How will regional governance and monitoring frameworks in Uttarakhand ensure that these GST reductions translate into increased production, employment and fair pricing for small producers rather than capture by intermediaries?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2181101