News Delhi: GST reforms have given a big boost to Uttarakhand’s economy and have benefited everyone from small hill farmers cultivating traditional crops to women artisans preserving Aipan and Ringal crafts. This information was given in an official statement released on Tuesday. The statement further said that by reducing the tax burden and improving competitiveness, the GST reforms will strengthen livelihood security, tourism, MSME development and green entrepreneurship.
With the reduction in GST rate from 12 per cent to 5 per cent, Pahari Toor Dal has become more competitive in the organic and health food markets. This step will benefit small farmers of Chamoli, Almora, Tehri, Nainital and Pithoragarh districts. Red rice grown in Purola and Mori in Uttarakhand is also expected to become more competitive, especially in the packaged and health food markets. Similarly, farmers growing GI-tagged Lakhauri chilli of Almora, known for its distinctive aroma and taste, will benefit from the reduction in GST rate from 12 per cent to 5 per cent.
Tourism, including hotels and restaurants, contributes 13.6 percent to the economy of Uttarakhand and provides direct and indirect employment to about 80,000 people. The GST rate on hotel rent up to Rs 7,500 has been reduced from 12 percent to 5 percent. This reform is expected to make travel more affordable and benefit small hotels, restaurants and homestays in Nainital, Mussoorie, Auli, Chopta, Munsiyari, Haridwar and Rishikesh.
In the hill districts of Uttarakhand, locally hand-knitted sweaters, caps and socks are an important seasonal cottage industry run by hill women. Reduction in GST rate from 12 percent to 5 percent is expected to bring down prices which will lead to increase in demand and increase in income. Similarly, artisans making baskets, trays and useful items made from Ringal (mountain bamboo) will also benefit.
There are 383 registered food processing units in Uttarakhand, mainly located in Rudrapur and providing employment to about 30,000 people. The reduction in GST rate from 12 per cent to 5 per cent is expected to improve margins, encourage value addition and boost investment in sectors such as fruit processing, herbal products and organic foods, thereby strengthening the agro-industrial base of the state.
The automobile manufacturing sector in Pantnagar, Rudrapur, Haridwar and Kashipur provides direct and indirect employment to about 50,000 people. Prices are expected to fall due to reduction in GST rate on vehicles up to 1200 cc (petrol) and 1500 cc (diesel) from 28 percent to 18 percent. This will boost domestic demand, support manufacturers and create additional employment opportunities in the automobile value chain.