GST 2.0 comes as booster shot for Bengal's economy

New Delhi, Oct 4 With GST rate cuts on goods ranging from Shantiniketan leather to Malda mango products, the government aims to enhance affordability for consumers and improve margins for artisans and farmers in West Bengal. This will bring higher sales, job preservation and a boost to the rural economy, according to an official factsheet released on Saturday.

West Bengal has long been known for traditional crafts, handlooms, and agro-based industries. From the terracotta temples of Bishnupur to the intricate embroidery of Nakshi Kantha, from the vibrant masks of Purulia to the globally admired Darjeeling tea, Bengal’s artisanal and industrial heritage sustains millions of livelihoods. The GST reforms reinforce Bengal's identity as a hub of artistry and enterprise while ensuring that local communities can thrive in both domestic and international markets.

The GST rate cuts will directly empower artisans, farmers, and small entrepreneurs of Bengal, making their products more competitive in both domestic and global markets. This will not only promote Bengal’s artisanal heritage but also strengthen local economies across districts.

Nakshi Kantha is one of Bengal's most iconic embroidery traditions, practised widely in rural districts such as Birbhum, Murshidabad, and Nadia. It provides a crucial source of income for rural women, often working in self-help groups or family units. The GST cut from 12 per cent to 5 per cent directly benefits this sector by reducing prices and strengthening its competitiveness against machine-embroidered or mass-produced imitations in domestic and foreign markets such as Europe, the US and Japan.

West Bengal is the heart of India's jute industry, which provides direct employment to over 2.5 lakh workers in organised mills and supports about 40 lakh farming families.

The GST reduction from 12 per cent to 5 per cent is expected to lower retail prices, making eco-friendly jute products such as bags more competitive against plastic or synthetic alternatives. This boosts domestic demand in urban markets while also supporting exports.

Hosiery and readymade garments form one of West Bengal's largest industries, employing an estimated 5,00,000 workers. Kolkata is the historical birthplace of India's hosiery industry, with major clusters in Metiabruz, Baruipur, and Siliguri. The increase in the threshold for the 5 per cent GST slab to Rs 2500 is the most impactful change.

Darjeeling tea, from the misty hills of Darjeeling and Kalimpong districts, is a world-famous luxury black tea, often dubbed the 'Champagne of Teas'.

While GST on basic tea remains at 5 per cent, tea extracts, essences, and concentrates have also been reduced from 18 per cent to 5 per cent, making these products cheaper for consumers and more competitive in the domestic and global premium beverage industry.

Malda district, often called Bengal's 'Mango Capital', produces over 200 varieties of mango. Its famed variants, Fazli, Laxman Bhog and Khirsapati (Himsagar), are GI-tagged, emblematic of the region's identity.

Mango cultivation is central to Malda's economy as about 4.5 lakh people, including 80,000 growers, are directly and indirectly associated with this industry. The GST reduction from 12 per cent to 5 per cent on processed mango products, juices and jams will reduce their retail price and increase demand by consumers.

The GI-tagged varieties are exported to the Middle East, the UK, Europe, and recently to new markets like Sweden and New Zealand.

The Shantiniketan leather goods cluster, centred in Birbhum district's Santiniketan-Bolpur region and adjacent villages like Surul and Ballavpur, has long been famed for its hand-embossed batik and applique designs on tanned leather.

Rooted in Visva-Bharati University's rural development programmes, the craft serves as a vital source of livelihood in areas with limited alternative employment.

The industry is characterised by a distributed model of small MSMEs, which provides direct employment to hundreds of artisans. The broader leather cluster in and around Kolkata employs approximately 5 lakh people.

Madurkathi Mats, Purulia Chhau Masks, Wooden Masks of Kushmandi and Sholapith Craft are the other handicraft items that will benefit from the GST rate cuts.

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