GST Rate Cuts Expand Opportunities Across Bihar’s Agriculture, Dairy and Handloom Sectors
SDG 8: Decent Work & Growth | SDG 12: Responsible Consumption
Institutions: Ministry of Finance | Ministry of Commerce & Industry | Government of Bihar | GST Council
The Government’s recent GST rate rationalisation is set to directly benefit Bihar’s agriculture, handicrafts and MSME sectors. Everyday essentials such as milk, paneer and ghee are now tax-free or cheaper, supporting over 9.6 lakh farmers linked to COMFED (Sudha). Makhana cultivators in Mithila, who account for 80–90% of India’s output, will see ~7% cost relief on processed products, while GI-tagged Shahi Litchi farmers gain from reduced rates on juices and pickles.
In handlooms and handicrafts, Bhagalpuri silk, Madhubani paintings, Sujini embroidery, Sikki crafts and Patharkatti stone carvings have all become 5–7% cheaper, enhancing competitiveness in domestic and export markets. The measures also reduce costs for bamboo and cane artisans, boosting traditional livelihoods.
Farmers stand to gain from lower GST on fertilisers, micronutrients and machinery (tractors, pumps, irrigation equipment), translating to 7–13% savings and easing adoption of mechanisation. Industrial hubs like Madhepura’s locomotive factory will see reduced production costs, while emerging clusters in AYUSH and honey production also benefit from lower tax incidence.
These reforms are directly aligned with Atmanirbhar Bharat and Viksit Bharat 2047, as they strengthen rural incomes, enhance MSME competitiveness, and sustain Bihar’s role as a key producer in agriculture, crafts and industrial sectors.
What is RoDTEP? → The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme refunds non-creditable taxes to exporters, ensuring Indian goods remain competitive globally.
Relevant Question for Policy Stakeholders: Can targeted GST cuts on GI-tagged products become a template for linking tax policy with regional livelihood promotion?
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