GST Likely to Be Slashed to 5% to Boost Handloom and Handicraft Sectors in J&K: Piyush Goyal

Union Commerce and Industry Minister Piyush Goyal, during his visit to Srinagar for the FTII: Traders Conclave 2025, assured traders and industry representatives in Jammu and Kashmir that steps are being considered to support the local economy, particularly handicrafts, handlooms, and agro-based industries.

Goyal said he would recommend a reduction in GST on handloom and handicraft products from the current 12% to 5% to the Finance Ministry, after local delegations flagged the issue. He encouraged stakeholders to formally submit their representation for the proposed rate cut, which he said would help expand the sector, especially in Jammu and Kashmir.

Highlighting the need for better product presentation, Goyal announced that a Centre of Excellence for Packaging and Design would soon be set up in the Union Territory. He directed officials to identify a suitable site and initiate the project in collaboration with the Indian Institute of Packaging. The initiative is expected to help improve the appeal of local products like pashmina, handicrafts, and horticulture items.

To further strengthen the ecosystem for innovation and entrepreneurship, Goyal also proposed a Centre of Excellence focused on cold chain infrastructure, storage technology, and support for startups.

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In a push towards sustainable development, Goyal mentioned plans to engage with NTPC and the Solar Energy Corporation of India to explore setting up solar lighting or power generation facilities in J&K. This would help local manufacturers export their goods as "green products" and tap into premium international markets as reported by The Economic Times.

On social media, Goyal shared that he had held detailed talks with the MSME Development Forum of Jammu & Kashmir, covering ideas to improve business ease, integrate MSMEs into national supply chains, and increase their competitiveness.

The Minister also met with members of the Kashmir Chamber of Commerce and Industry to discuss ways to boost industrial growth and create a conducive business environment. He further engaged with representatives of the Jammu-Kashmir Fruits and Vegetable Processing and Integrated Cold Chain Association (JKPICCA) to deliberate on the importance of cold chain and agro-processing infrastructure in driving export growth and supporting the region’s agri-economy.

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