Bhadohi Carpets, Moradabad Brassware Become 6–7% Cheaper After GST Relief

The Goods and Services Tax (GST) reform has offered relief to Uttar Pradesh's diversified economy, such as GI-registered zardosi, brassware, carpets, shoes, ceramics, sports goods, and cement. Reduced tax rates will enhance affordability for households and alleviate working capital constraints on artisans. This will enhance the competitiveness of small and medium-sized enterprises (MSMEs) in both domestic and international markets.

The lower GST rates are likely to cut prices of Bhadohi carpets, Moradabad brassware, and Saharanpur wood products by 6-7 percent. This will increase exports and provide jobs for millions of artisans. The Bhadohi, Mirzapur, and Jaunpur areas account for one of India's largest handwoven and carpet clusters.

These carpets have become cheaper after the GST rate was reduced from 12 to 5 percent. The leather and footwear clusters in the Kanpur-Agra region, which employ 1.5 million workers, will also benefit from the GST rate reduction. This will improve the competitiveness of MSMEs and increase exports. The wooden toy and craft sector will receive a boost, driven by family artisans, many of whom work from their homes.