India’s latest GST reforms are bringing big relief to Uttar Pradesh’s vibrant economy, especially for its famous handicrafts, sports goods, and cement sectors. These changes slash taxes on key items like GI-registered carpets, brassware, Zardozi embroidery, footwear, ceramics, and more, making them more affordable and competitive. Officials say this will help households save money, ease cash flow for artisans, and boost small businesses in local and global markets.
Take the carpet industry in Bhadohi, Moradabad, and Saharanpur—these hubs produce stunning hand-knotted and handwoven pieces that support lakhs of artisan jobs. With the GST rate dropping from 12% to 5%, handmade carpets could get 6-7% cheaper. That means better prices for buyers at home, stronger exports, and less financial strain on family-run looms and small enterprises in the Bhadohi-Mirzapur-Jaunpur cluster, one of India’s top carpet-making areas.
The leather and footwear scene in Kanpur and Agra also wins big. This belt employs about 1.5 million workers in MSMEs churning out shoes and leather goods. The GST cut will sharpen their edge against competitors, ramp up exports, and keep jobs steady in these bustling clusters.
In Firozabad, Khurja, and Gorakhpur, glassware, ceramics, and terracotta crafts face tough times, but lower costs from the tax reduction will help. Prices should drop, sparking demand during festivals and supporting these delicate, traditional workshops that rely on skilled hands.
Lucknow’s Zardozi embroidery, a GI-tagged craft and star of the ODOP program, stands to shine brighter. It employs 1.5-2 lakh artisans, many of them women in cottage units, creating intricate designs for weddings, festivals, and exports to the Middle East, Europe, and the US. The GST reforms will cut production costs, fueling domestic sales and international appeal.
Agra’s marble inlay work, or Parchinkari, ties closely to the Taj Mahal’s legacy and tourism. Families in Agra, Firozabad, and Mathura pass down this art to 5,000-20,000 carvers, polishers, and artists, often backed by ODOP efforts. A pending GI tag could boost it further. With taxes down from 12% to 5%, stone handicrafts become wallet-friendly for tourists and online shoppers, lifting sales and easing pressures on small workshops that sell décor and gifts worldwide.
Embroidery across Lucknow, Varanasi, and Bareilly gets a lift too, with 2.5-3 lakh artisans—mostly women in rural and semi-urban homes—crafting GI-registered gems like Lucknow Chikan and Varanasi Zardozi. These family outfits, promoted under ODOP, serve strong local demand and modest exports. Cheaper GST means more competitiveness for these cottage industries.
Wooden toys and crafts from Varanasi, Chitrakoot, Saharanpur, and Rampur keep traditions alive with 15,000-25,000 home-based artisans. They supply fairs, religious items, and décor, plus some exports to Europe and the Gulf. The 12%-to-5% GST drop makes these handmade wooden products more affordable than plastic alternatives, helping artisans hold their ground in local markets.
Sports goods makers in Meerut and Modinagar, employing 30,000-35,000 in small units and factories, produce cricket gear, hockey sticks, and more for a Rs 250 crore domestic market and exports to the UK, Australia, Africa, and the Middle East. ODOP support already aids marketing and MSMEs, and the GST cut to 5% will drive demand, enhance exports, and stabilize jobs.
Finally, the cement sector in Mathura, Chunar, Firozabad, and Aligarh sees its GST fall from 28% to 18%, benefiting large plants near limestone sources that hire 15,000-20,000 workers directly, plus thousands in supply chains. This powers housing, infrastructure, and even small exports to Nepal and Bangladesh. Lower prices will cut construction costs for builders and families, outpace imports, and fuel industry growth.
Overall, these GST reforms spotlight Uttar Pradesh’s artisan-driven economy, from GI handicrafts to industrial staples, promising more jobs, exports, and accessible goods for everyone.
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