he latest GST reforms have eased burdens across the country, with varied benefits across states and sectors. In Himachal Pradesh, known for its rich traditional crafts, distinctive agricultural produce, and growing industries, recent GST rate cuts are set to make a strong impact.
They will bring relief for small artisans and weavers, new opportunities for farmers and cultivators, and greater competitiveness for industrial clusters in Himachal. Together, these reforms will strengthen livelihoods and position the state for sustained growth.
Shawls & Woollen Textiles
Himachal’s famed handloom products, especially its shawls and woollen textiles, are expected to gain relief under the new GST structure. These products are not just souvenirs; they are a livelihood for thousands of artisans.
In the Kullu valley, 3,000+ weavers involved in SHGs produce the brightly patterned, GI-tagged, Kullu shawls. These weavers are part of an estimated 10,000-12,000 handloom artisans statewide who derive their livelihood from these handicrafts. The neighbouring Kinnaur district’s shawls, adorned with intricate mythological motifs, are woven and hand-dyed by several thousand artisans. With GST reduced from 12% to 5%, the cost of these handwoven products is expected to fall for consumers. This move directly supports the artisans’ competitiveness and income.
Pashmina shawls also benefit from the revised rates from 12% to 5%. Though often associated with Kashmir, Himachal also has its own production in regions like Lahaul-Spiti, Kinnaur, Kullu, Mandi and Shimla. Many of the 10,000-12,000 artisans in handloom sector work with pashmina, crafting luxury wool crafts. The tax cut provides relief in this high-value segment too, potentially enabling artisans to price their shawls more competitively while maintaining margins.
Along with shawls, traditional Himachali caps, such as the multi-coloured Kinnauri caps and other woollen accessories like gloves also benefit with the revised GST slab. These items are hand-knitted by thousands of artisans across high-altitude districts. The lower tax is expected to modestly reduce prices for consumers. This will secure livelihoods for artisans and weavers and help in preserving generations-old crafts.
Handicrafts & Cottage Industries
Beyond textiles, Himachal Pradesh is home to a variety of handicrafts and cottage industries, all of which have benefited from GST rationalization. The GST on most handcrafted items was reduced from 12% to 5%; this has direct implications for artisans across the state.
Chamba Rumal Embroidery
The Chamba rumal is a GI-tagged, miniature hand-embroidered cloth, made primarily by women artisans in Chamba district. Several hundred women in localized clusters are involved in its production. With GST now 5%, the cost for buyers is lower, which could spur demand for these handkerchiefs. The tax cut also symbolizes recognition of the crafts’ cultural values and promotion of heritage art forms.
Chamba Chappals
Traditional leather slippers from Chamba, are another GI-tagged product, produced by hundreds of small cottage craft units. A lower GST will make their pricing more competitive against machine-made footwear and encourage sales of indigenous chappals. This will help artisans improve their margin.
Woodcraft items
From intricate wooden doors and panels to furniture, carved wooden products are produced in areas like Chamba, Kinnaur, and Kullu. This industry hires thousands of rural artisans in Himachal. The new GST rates put wooden articles in the 5% category which will stimulate demand for locally made wooden furniture and souvenirs. It will not only make these items more affordable but also support local artisans.
Pottery & Metalware
Himachal has a strong traditional metal craft industry with hundreds of small artisan units in the state engaged in these crafts. Spread across various districts, skilled artisans produce ritual vessels and jewellery and pottery. The revised GST rates of 5% are expected to create a more favourable market for indigenous metalware & pottery products. This will give artisans a better chance to sell their metal wares and pottery items.
Bamboo Items
Certain parts of Himachal produce bamboo products such as baskets, and other eco-friendly crafts. The industry employs hundreds of artisans, many coming from marginalised communities. These products, which were taxed 12%, now fall under 5%.
For the artisans, this is a welcome change, as it not only lowers prices for their customers but also highlights the government’s support for sustainable, traditional crafts.
