{"id":76342,"date":"2025-10-02T11:18:57","date_gmt":"2025-10-02T11:18:57","guid":{"rendered":"https:\/\/mavericknews30.com\/?p=76342"},"modified":"2025-10-02T11:18:58","modified_gmt":"2025-10-02T11:18:58","slug":"gst-rate-cut-empowering-livelihood-and-growth-in-uttar-pradesh","status":"publish","type":"post","link":"https:\/\/mavericknews30.com\/?p=76342","title":{"rendered":"GST Rate Cut : Empowering Livelihood and Growth in Uttar Pradesh"},"content":{"rendered":"\n

Key Takeaways<\/strong><\/p>\n\n\n\n

\u00b7 Bhadohi carpets, Moradabad brassware, and Saharanpur woodcraft<\/strong> to be 6\u20137% cheaper, boosting exports and sustaining lakhs of artisan jobs.<\/p>\n\n\n\n

\u00b7 Kanpur\u2013Agra<\/strong> leather and footwear clusters, employing 1.5 million workers<\/strong>, benefit from GST cut, improving MSME competitiveness and exports.<\/p>\n\n\n\n

\u00b7 Firozabad glassware, Khurja ceramics, and Gorakhpur terracotta<\/strong> see lower costs, supporting fragile clusters and festival demand.<\/p>\n\n\n\n

\u00b7 Cement, footwear, and sports goods clusters<\/strong> become more affordable for households and infrastructure, strengthening industrial growth.<\/p>\n\n\n\n

Introduction<\/strong><\/p>\n\n\n\n

Uttar Pradesh is home to some of India\u2019s most iconic craft and industrial clusters<\/strong>. From Bhadohi carpets and Moradabad brassware<\/strong> to Kanpur leather, Firozabad glassware and Meerut sports goods<\/strong>, the state\u2019s economy blends artisanal heritage with large-scale industry. Traditional crafts such as Lucknow Chikankari, Varanasi Zardozi, Saharanpur woodwork and Gorakhpur terracotta<\/strong> are globally recognised, while products like Agra Petha and Khurja ceramics<\/strong> carry unique regional identities.<\/p>\n\n\n\n

The recent GST rate rationalisation<\/strong> extends relief across these value chains including handicrafts, food products, footwear, toys, textiles and industrial goods<\/strong>. By lowering the tax burden, the reforms are expected to reduce costs for consumers, improve margins for artisans and MSMEs<\/strong>, and make Uttar Pradesh\u2019s export clusters more competitive.<\/p>\n\n\n

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Carpets & Rugs<\/strong><\/p>\n\n\n\n

The Bhadohi\u2013Mirzapur\u2013Jaunpur region<\/strong> is one of India\u2019s largest hand-knotted and handwoven carpet clusters<\/strong>. Bhadohi (Sant Ravidas Nagar) is recognised as an One District One Product (ODOP) flagship cluster and the country\u2019s biggest carpet-export hub. The cluster has over 100,000 looms<\/strong>, with about 63,000 artisans<\/strong> in Bhadohi alone, and sustains between 80,000\u20131.4 lakh livelihoods<\/strong> across weaving, dyeing, finishing and logistics. The Handmade Carpet of Bhadohi is GI-registered<\/strong>.<\/p>\n\n\n\n

Following the GST cut from 12% to 5%<\/strong>, handmade carpets are expected to be 6\u20137% cheaper<\/strong>. This is likely to improve affordability in domestic markets, strengthen export competitiveness, and ease working-capital pressures for family looms and SMEs that dominate the cluster.<\/p>\n\n\n\n

Stone & Marble Handicrafts<\/strong><\/p>\n\n\n\n

Agra\u2019s famed marble inlay craft (Parchinkari)<\/strong>, carried forward by artisan families in Agra, Firozabad and Mathura, remains closely tied to tourism. The cluster sustains 5,000\u201320,000 workers<\/strong>, including carvers, polishers and inlay artists, many supported under ODOP initiatives.<\/p>\n\n\n\n

The sector is closely tied to tourism and d\u00e9cor markets, with additional sales through online gifting and limited niche exports to Europe and the Gulf<\/strong>. A GI application for Agra Parchinkari is under examination, and the craft is globally recognised for its link to the Taj Mahal\u2019s heritage<\/strong>.<\/p>\n\n\n\n

The GST rate reduction from 12% to 5%<\/strong> is expected to make stone handicrafts more affordable for tourists and domestic buyers, boosting sales and easing cost pressures on small workshops.<\/p>\n\n\n\n

Brassware & Metal Handicrafts<\/strong><\/p>\n\n\n\n

Moradabad\u2019s brassware<\/strong> cluster, along with Rampur and Farrukhabad<\/strong>, is dominated by MSMEs and family-run workshops<\/strong>. The cluster directly employs about 20,000\u201360,000 artisans in Moradabad<\/strong>, with many more engaged in polishing, packaging and logistics. Moradabad Metal Craft is GI-registered<\/strong>, and the city is one of India\u2019s largest handicraft export hubs<\/strong>.<\/p>\n\n\n\n

With GST reduced from 12% to 5%<\/strong>, brassware is expected to be ~6% cheaper<\/strong>, boosting festival demand, improving export competitiveness, and supporting MSME profitability while stabilising artisan jobs.<\/p>\n\n\n\n

Leather Goods & Accessories<\/strong><\/p>\n\n\n\n

Uttar Pradesh\u2019s leather sector combines large exporters with small tanneries and MSMEs. As per the state government, the industry employs more than 1.5 million people<\/strong>, with Kanpur alone hosting nearly 200 tanneries. Kanpur Saddlery and Agra Leather Footwear are both GI-registered<\/strong> and recognised as ODOP flagship products for their districts.<\/p>\n\n\n\n

The GST rate cut from 12% to 5%<\/strong> on leather goods and footwear priced up to \u20b92,500 is expected to ease retail prices. This will improve MSME competitiveness, boost export margins by lowering the effective tax burden, and encourage formalisation of smaller leather units across Kanpur, Agra and Unnao.<\/strong><\/p>\n\n\n\n

Chikankari & Zari Embroidery<\/strong><\/p>\n\n\n\n

Cottage-based and family-run units dominate Uttar Pradesh\u2019s embroidery sector, with nearly 2.5\u20133 lakh artisans engaged across Lucknow, Varanasi and Bareilly<\/strong> (NIFT & MSME reports). Women make up a large share of the workforce, particularly in semi-urban and rural households. Lucknow Chikan Craft and Varanasi Zardozi Work are both GI-registered<\/strong> and recognised ODOP products, receiving special promotional support.<\/p>\n\n\n\n

With GST reduced from 12% to 5%<\/strong>, embroidered garments are expected to become 6\u20137% cheaper<\/strong>. This is likely to help artisans compete with machine-made alternatives and support household incomes from wedding, festive and export orders.<\/p>\n\n\n

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Glassware & Bangles<\/strong><\/p>\n\n\n\n

Firozabad, known as the \u201cGlass City of India,\u201d<\/strong> is promoted under ODOP and registered with a GI tag for its glass craft. The district sustains about 1.5 lakh workers and artisans<\/strong>, with production dominated by small kilns and MSMEs.<\/p>\n\n\n\n

The cluster serves a domestic market worth around \u20b92,000 crore<\/strong>, while exports of decorative glassware and beads reach Gulf countries, Africa and Southeast Asia<\/strong>.<\/p>\n\n\n\n

With the GST rate now 5% instead of 12%<\/strong>, glassware and bangles are expected to be 6\u20137% cheaper<\/strong>. This is likely to boost sales in a price-sensitive domestic market, improve the viability of small furnaces, and help stabilise incomes for artisan families.<\/p>\n\n\n\n

Pottery & Terracotta<\/strong><\/p>\n\n\n\n

Uttar Pradesh\u2019s pottery clusters include Gorakhpur Terracotta and Nizamabad Black Pottery (Azamgarh)<\/strong>, both GI-registered ODOP products, along with Khurja ceramics. Across Gorakhpur and Azamgarh, these clusters employ an estimated 10,000\u201315,000 artisans<\/strong>, many of them in family-based and seasonal units.<\/p>\n\n\n\n

Domestic demand is driven by religious markets, festivals and decorative use, with some limited exports to niche buyers in Europe and the US<\/strong>.<\/p>\n\n\n\n

With GST reduced from 12% to 5%<\/strong>, pottery and terracotta items are expected to become more affordable. This is likely to boost festive-season sales, improve competitiveness against plastic and metal substitutes, and help sustain these fragile artisan clusters.<\/p>\n\n\n

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Traditional Toys<\/strong><\/p>\n\n\n\n

Seasonal toys such as tricycles, scooters, pedal cars and religious figurines are crafted in districts like Meerut, Gorakhpur, Jhansi and Mathura<\/strong>, mainly by home-based artisans, many of them women. Around 8,000\u201310,000 artisans depend on this sector<\/strong>, often part-time and seasonally, with incomes closely tied to festivals such as Janmashtami, Diwali and Holi.<\/p>\n\n\n\n

The craft is promoted under ODOP through training and cluster-based support, while Gorakhpur Terracotta Dolls are GI-registered<\/strong>. With GST reduced from 12% to 5%<\/strong>, traditional toys are expected to become 6\u20137% cheaper<\/strong>, boosting festival demand and providing supplementary income for artisan households.<\/p>\n\n\n\n

Wooden Toys & Craft<\/strong><\/p>\n\n\n\n

The wooden toy and craft sector in Uttar Pradesh is sustained by family artisans, many of whom work from their homes. The clusters in Varanasi and Chitrakoot alone employ around 15,000\u201325,000 artisans<\/strong>, while Saharanpur is home to thousands more engaged in woodworking and carving. Rampur is also part of this traditional craft network.<\/p>\n\n\n\n

Varanasi Wooden Lacquerware & Toys and Saharanpur Wood Carving are both GI-registered and promoted under ODOP, with common facility centres and design training helping artisans modernise production. The clusters cater to strong domestic demand through fairs, religious toys and d\u00e9cor, with modest exports reaching Europe and the Gulf.<\/p>\n\n\n\n

With GST reduced from 12% to 5%<\/strong>, toys and small crafts are expected to become cheaper, improving affordability in local markets and helping artisans compete with machine-made plastic products.<\/p>\n\n\n\n

Handmade Paper & Stationery<\/strong><\/p>\n\n\n\n

Handmade paper and eco-friendly stationery are produced in clusters across Saharanpur, Meerut and Lucknow<\/strong>, largely through SHGs, MSMEs and eco-enterprises. The sector employs about 5,000\u20136,000 workers<\/strong>, including many women artisans, and is promoted under Khadi & Village Industries Commission’s (KVIC\u2019s) \u201cGreen Products\u201d initiative as well as ODOP.<\/p>\n\n\n\n

Domestic demand is rising with eco-conscious consumers, while exports of handmade paper and wedding stationery reach markets in the EU, USA and Japan<\/strong>.<\/p>\n\n\n\n

With GST reduced from 12% to 5%<\/strong>, these products are expected to become more competitive against machine-made paper, encouraging wider eco-friendly adoption in weddings, schools and offices, and strengthening rural SHG incomes.<\/p>\n\n\n\n

Agra Petha<\/strong><\/p>\n\n\n\n

Agra\u2019s famous sweet, Petha, is<\/strong> both GI-registered<\/strong> and promoted as an ODOP flagship product. Produced largely in small family-run units across Agra and Fatehpur Sikri<\/strong>, it sustains about 5,000\u20136,000 workers<\/strong> engaged in production, packaging and local sales.<\/p>\n\n\n\n

The sweet enjoys high domestic demand, driven by Agra\u2019s tourism, gifting and festivals, with limited exports to the Gulf and USA through ethnic food suppliers. With GST reduced from 12\/18% to 5%<\/strong>, Agra Petha is expected to become more affordable, boosting tourist purchases, helping small sweet shops remain competitive against packaged candies, and supporting employment stability in candy-making families.<\/p>\n\n\n\n

Sports Goods<\/strong><\/p>\n\n\n\n

Meerut and Modinagar<\/strong> together form one of India\u2019s largest sports goods clusters, with ~30,000\u201335,000 workers engaged<\/strong> in small units, MSMEs and larger factories. The sector produces cricket and hockey equipment for a domestic market worth about \u20b9250 crore<\/strong>, while also exporting to the UK, Australia, Africa and the Middle East<\/strong>. It is supported under ODOP with marketing and MSME assistance.<\/p>\n\n\n\n

With GST reduced from 12% to 5%<\/strong>, sports goods are expected to be 5\u20137% cheaper<\/strong>. This is likely to boost demand in the domestic market, improve export competitiveness, and support employment stability across small and medium enterprises.<\/p>\n\n\n\n

Footwear<\/strong><\/p>\n\n\n\n

Agra\u2019s footwear cluster<\/strong>, along with Mathura, is dominated by small family workshops and MSMEs. The cluster produces about 1.5 lakh pairs every day<\/strong> and contributes nearly 28% of India\u2019s total footwear exports. It sustains ~10,000\u201315,000 workers across production<\/strong>, finishing and retail. Agra Leather Footwear is GI-registered and promoted under ODOP<\/strong>.<\/p>\n\n\n\n

With GST reduced from 12% to 5%<\/strong> on footwear priced up to \u20b92,500, retail prices are expected to fall. This will improve domestic affordability, support small-scale workshops and employment, and enhance competitiveness against large-scale and synthetic footwear in global markets.<\/p>\n\n\n\n

Khurja Ceramics<\/strong><\/p>\n\n\n\n

Khurja in Bulandshahr district is a major ceramic hub, dominated by small and medium family-run enterprises. Around 20,000\u201325,000 artisans and workers<\/strong> are engaged in shaping, glazing, firing, finishing and packaging. The craft is promoted under ODOP. With GST reduced from 12% to 5%<\/strong>, Khurja ceramics are expected to be 6\u20137% cheaper<\/strong>. This will improve competitiveness against industrial ceramics, strengthen SME profitability, sustain the cluster, and boost both domestic and export demand.<\/p>\n\n\n\n

Lucknow Zardozi & Embellished Fabrics<\/strong><\/p>\n\n\n\n

Lucknow Zardozi, a GI-registered craft and an ODOP-promoted product, provides livelihoods to around 1.5\u20132 lakh artisans<\/strong>, with women forming a large share of the workforce in cottage and small-scale units. The craft serves strong domestic demand from weddings and festivals, along with exports to the Middle East, Europe and the USA<\/strong>.<\/p>\n\n\n\n

With GST reduced from 12% to 5%<\/strong>, embellished fabrics are expected to become more affordable, boosting festive and wedding orders, strengthening artisanal employment<\/strong>, and enhancing competitiveness against machine-made imitations.<\/p>\n\n\n\n

Wooden Handicrafts<\/strong><\/p>\n\n\n\n

Saharanpur, along with parts of Dehradun (UP portion), is a centre for wooden handicrafts<\/strong>, where family-run workshops dominate small-scale, skill-intensive carving. The sector sustains about 50,000\u201360,000 artisans and workers<\/strong>, serving domestic d\u00e9cor and gifting markets while also exporting to Europe, the USA and the Middle East<\/strong>. Saharanpur Wood Carving is GI-registered and recognised as an ODOP flagship product.<\/p>\n\n\n\n

With GST reduced from 12% to 5%<\/strong>, wooden handicrafts are expected to become more affordable in domestic markets, boosting sales, supporting artisan retention and skill preservation, and enhancing export competitiveness.<\/p>\n\n\n\n

Cement Industry<\/strong><\/p>\n\n\n\n

Uttar Pradesh\u2019s cement industry, spread across Mathura, Chunar (Mirzapur), Firozabad and Aligarh<\/strong>, is dominated by large-scale industrial plants. The sector employs about 15,000\u201320,000 direct workers<\/strong> and another ~10,000 in transport, raw material supply and construction-linked services. These clusters are located around limestone-rich areas, ensuring efficient supply chains. While the domestic market is driven by housing, infrastructure and construction, limited clinker exports also go to Nepal and Bangladesh<\/strong>.<\/p>\n\n\n\n

The GST rate reduction from 28% to 18%<\/strong> will make cement more affordable, lowering construction costs for developers and households, improving competitiveness against imports, and encouraging expansion of industrial plants and logistics services.<\/p>\n\n\n

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Conclusion<\/strong><\/p>\n\n\n\n

The GST reforms<\/strong> provide targeted relief to Uttar Pradesh\u2019s diverse economy spanning carpets, brassware, Zardozi, footwear, ceramics and cement<\/strong>. Lower tax rates are expected to improve affordability for households, ease working-capital pressures on artisans, and strengthen MSME competitiveness in both domestic and global markets<\/strong>.<\/p>\n\n\n\n

By sustaining millions of livelihoods, supporting ODOP and GI-recognised products, and boosting the competitiveness of both crafts and industries, these reforms reinforce Uttar Pradesh\u2019s position as a key contributor to India\u2019s economic growth<\/strong>. The changes also align with the long-term vision of Atmanirbhar Bharat and Viksit Bharat 2047<\/strong>, where traditional skills and modern industries grow side by side.<\/p>\n","protected":false},"excerpt":{"rendered":"

Key Takeaways \u00b7 Bhadohi carpets, Moradabad brassware, and Saharanpur woodcraft to be 6\u20137% cheaper, boosting exports and sustaining lakhs of artisan jobs. \u00b7 Kanpur\u2013Agra leather and footwear clusters, employing 1.5 million workers, benefit from GST cut, improving MSME competitiveness and exports. \u00b7 Firozabad glassware, Khurja ceramics, and Gorakhpur terracotta see lower costs, supporting fragile clusters and festival demand. \u00b7 Cement, footwear, and sports …<\/p>\n","protected":false},"author":10,"featured_media":76343,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[142],"tags":[143],"post_format":[],"flags":[],"class_list":["post-76342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-state","tag-state"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/mavericknews30.com\/index.php?rest_route=\/wp\/v2\/posts\/76342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mavericknews30.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mavericknews30.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mavericknews30.com\/index.php?rest_route=\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/mavericknews30.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=76342"}],"version-history":[{"count":1,"href":"https:\/\/mavericknews30.com\/index.php?rest_route=\/wp\/v2\/posts\/76342\/revisions"}],"predecessor-version":[{"id":76344,"href":"https:\/\/mavericknews30.com\/index.php?rest_route=\/wp\/v2\/posts\/76342\/revisions\/76344"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mavericknews30.com\/index.php?rest_route=\/wp\/v2\/media\/76343"}],"wp:attachment":[{"href":"https:\/\/mavericknews30.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=76342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mavericknews30.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=76342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mavericknews30.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=76342"},{"taxonomy":"post_format","embeddable":true,"href":"https:\/\/mavericknews30.com\/index.php?rest_route=%2Fwp%2Fv2%2Fpost_format&post=76342"},{"taxonomy":"flags","embeddable":true,"href":"https:\/\/mavericknews30.com\/index.php?rest_route=%2Fwp%2Fv2%2Fflags&post=76342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}