GST Rationalisation Enables Karnataka Growth Across Agriculture, Industry and Crafts
SDG 8: Decent Work and Economic Growth | SDG 12: Responsible Consumption and Production
Institutions: Ministry of Finance | Government of Karnataka
The Union Government has implemented a major GST rate rationalisation initiative in the state of Karnataka, cutting tax rates on products and inputs across agriculture, manufacturing, crafts and services to stimulate inclusive growth. The reforms include reducing GST on extracts, essences and instant coffee from 18% to 5%βsignificantly benefiting Karnataka-based growers covering around 71% of Indiaβs coffee output.
Additional measures: UHT milk and paneer have been moved to nil; ghee and butter rates lowered to 5%; GST on cashew, coir and marine products down to 5%, supporting coastal and women-led MSME livelihoods; tractors, machinery, cement and granite inputs now enjoy 6-8% lower rates, boosting rural mechanisation and construction jobs; and traditional crafts like Ilkal sarees, Bidriware and rosewood inlay, including drone technology, face GST cut to 5% to strengthen artisan ecosystem and tech clusters.
These rate changes align with efforts under Make in India, Atmanirbhar Bharat, and rural livelihood strengthening strategies by enabling cost-competitive production, market access for small growers and exporters, and formalisation of value chains in agriculture, crafts and MSMEs.
Relevant Question for Policy Stakeholders: Will the GST cuts translate into stronger value-chain linkages, higher farmer incomes and greater artisanal job creation in Karnataka, especially among marginal growers and women-led enterprises?
Follow the full news here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2182006