New Delhi [India], October 22 (ANI): The recent GST rationalisation reforms, which came into effect this Navratri, are set to provide wide-ranging benefits across Ladakh’s economy, supporting artisans, farmers, and small enterprises while promoting sustainable growth and cultural preservation.
A minimum 5 per cent GST on Pashmina, Namda rugs, and wooden handicrafts is expected to benefit over 10,000 artisans. The reduced tax on dairy and organic farming will enhance earnings and competitiveness for more than 6,000 families involved in apricot cultivation. Similarly, a 5 per cent GST on hotel tariffs up to ₹7,500 per night will make travel more affordable, supporting livelihoods for over 25,000 people engaged in local tourism and homestays.
Pashmina wool, produced in the Changthang region of Leh, is a prized local craft sustaining nomadic herders. The GST reduction from 12% to 5% is expected to boost the competitiveness of authentic Ladakhi Pashmina against imported alternatives, providing stable income and export opportunities. Traditional woollen products such as Namda rugs, felt boots, hats, and gloves, as well as wooden crafts from Leh and Kargil, will similarly benefit, preserving Ladakh’s artisanal heritage.
Ladakhi Thangka paintings, crafted in monasteries in Leh, Alchi, and Hemis, will also gain from the reduced GST, making these intricate Buddhist scroll artworks more accessible and economically viable.
Agriculture and organic farming will see tangible benefits as well. Ladakh is India’s largest apricot producer, with Kargil, Leh, and Nubra Valley serving as primary hubs. GST reductions will enhance the competitiveness of locally produced apricots and value-added products such as dried fruits, jams, and oils. Sea buckthorn cultivation, led by women’s Self-Help Groups, along with yak dairy and cheese products from Changthang and Nubra, will also see improved market viability.
The reforms aim to strengthen small-scale eco-farmers, support high-altitude communities, and promote sustainable practices in Sham Valley and Kargil through herbal teas, dried vegetables, and other organic produce.
“The recent GST reforms mark a transformative step for Ladakh’s economy by empowering its traditional artisans and farmers. From Pashmina weavers and apricot growers to sea buckthorn processors and homestay owners, each sector stands to gain through reduced costs, improved competitiveness, and higher incomes,” the government said. The reforms follow the GST Council’s 56th meeting, which simplified the GST structure to two main rates—5% (merit rate) and 18% (standard rate), along with a 40% special rate for sin and luxury goods, effective from September 22, 2025.
These next-generation GST reforms, announced shortly after Prime Minister Narendra Modi’s Independence Day address, aim to reduce tax burdens, stimulate economic growth, and preserve Ladakh’s rich cultural and eco-friendly industries. (ANI)
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