SDG 8: Decent Work & Economic Growth | SDG 9: Industry, Innovation & Infrastructure
Institutions: Ministry of Finance | GST Council | Government of Tamil Nadu
A PIB factsheet highlights how the GST Council’s rate rationalisation will directly benefit both traditional industries and modern sectors in Tamil Nadu.
Price impact: Rate cuts on textiles, handicrafts, coir, food, and fisheries are expected to lower consumer prices by 6–11%, enhancing affordability and competitiveness.
Traditional sectors: Key regional industries such as Kanchipuram silk, Bhavani rugs, and Tiruppur knitwear gain from reduced tax burdens, making them more competitive in domestic and export markets.
Modern industries: Sectors including automobiles, electronics, defence, and renewables will benefit from lower input costs, helping attract investments.
Employment gains: The factsheet estimates job creation potential—10 lakh in Tiruppur knitwear, 22 lakh in automobiles, and 10.5 lakh in fisheries, underscoring the reform’s livelihood impact.
NextGenGST framing: The reforms are positioned as part of NextGenGST, aimed at simplifying the tax structure, boosting compliance, and supporting India’s growth story.
For Tamil Nadu, GST rationalisation could translate into stronger state-level industrial competitiveness while aligning with national efforts to modernise taxation. The employment and export gains projected could reinforce India’s manufacturing and services push under Make in India.
What is GST Council? → The Goods and Services Tax Council is a constitutional body chaired by the Union Finance Minister with state finance ministers as members. It decides GST rates and reforms through consensus.
Relevant Question for Policy Stakeholders: How can Tamil Nadu and other states leverage GST rate cuts to link traditional clusters with modern value chains, ensuring both inclusivity and global competitiveness?
Follow the full factsheet here: PIB Factsheet Id 150307