New Delhi, Oct 4: The recent adjustment of the GST rate from 12% to 5% is significantly enhancing competitiveness and reducing costs across various sectors in Jammu and Kashmir, including handicrafts, agriculture, tourism, and local specialties.

This tax relief is vital for improving the livelihoods of artisans and farmers, promoting exports, and generating employment opportunities, all while ensuring sustainable development and the preservation of the region's rich cultural heritage, as stated in an official report.

Heritage items such as GI-tagged Pashmina shawls, Dogra cheese, and Basohli paintings are now better equipped to compete in both domestic and international markets, thereby safeguarding cultural identity.

With the new GST rates, the handloom industry now faces only a 5% GST, making iconic items like pashmina shawls and carpets more affordable and competitive in various markets.

This reduction in costs is expected to stimulate demand, increase sales, and enhance exports throughout the Kashmir valley, directly benefiting artisans and weavers reliant on these traditional crafts.

Wicker willow handicrafts, a specialty of J&K, utilize a durable material woven by skilled artisans to create diverse products through traditional methods. This sector also benefits from the GST reduction, with rates lowered from 12% to 5%.

Additionally, paper-mache, a popular craft in Kashmir and a GI-tagged traditional industry, is also experiencing favorable changes at a critical time when it faces stiff competition from machine-made alternatives.

According to the official document, key craft hubs like Srinagar, Budgam, and Ganderbal are poised to benefit greatly from the GST rate cut, which enhances competitiveness, supports artisans' livelihoods, and sustains these unique cultural industries.

In the Kashmir Valley, particularly in Kanihama, around 5,000 weavers produce fine GI-tagged Pashmina shawls. The GST reduction from 12% to 5% makes these shawls more accessible, increasing demand, exports, and competitiveness against machine-made replicas, while also securing livelihoods and preserving Kashmir's iconic heritage.

J&K is responsible for over 91% of India's almond production, with manufacturing and processing centers located throughout the region.

This sector alone employs nearly 5,500 individuals, making it a vital component of the local economy. The Kashmiri almond packaging industry stands to gain significantly from the substantial GST reduction.

This change may also stimulate demand and sales volumes, promote greater value addition within the state, and improve profit margins for both farmers and processors.

The stunning landscapes of J&K, from Jammu's renowned temples to the picturesque lakes and gardens of the Kashmir Valley, position it as a premier global tourist destination.

The tourism sector supports over 70,000 jobs and contributes nearly 15% to the state's GDP. Tourist arrivals have steadily increased, from 21 million in CY23 to 23 million in CY24.

With the GST on tourism and hotel tariffs reduced from 12% to 5% for stays priced up to Rs 7,500, travel is set to become more affordable, leading to higher occupancy rates, longer stays, increased revenue for local businesses, and further job growth in the sector.