GST cut on Pashmina has boosted traditional handicraft sector: Minister

Union Minister Dr Jitendra Singh on Tuesday said the Central Government’s decision to reduce the Goods and Services Tax (GST) on Pashmina products to 5% has significantly boosted Jammu & Kashmir’s historic handicraft sector, while also opening new avenues for artisans and entrepreneurs.

Speaking during his visit to the two-day exhibition “The Splendor of Kashmir”—held in New Delhi with support from FICCI-FLO—Dr Singh interacted with the exhibition’s founder and curator, Varuna Anand. When asked about the impact of the GST reduction, Anand shared that sales had surged within just three weeks of the new rates coming into effect on September 22.

Praising Anand and her team, Dr Singh described the exhibition as a prime example of women-led entrepreneurship. He highlighted that under Prime Minister Narendra Modi’s leadership, the number of startups in India has grown from around 350 to over 1.7 lakh, with nearly 60,000 of them led by women, many from Tier 2 and Tier 3 cities.

The exhibition showcases the rich legacy of handcrafted Pashmina shawls and traditional Kashmiri textiles, reflecting the centuries-old artistry of the Valley. Dr Singh lauded the intricate craftsmanship and months of skilled labour involved in producing each shawl. He was also briefed on the elaborate process—from the delicate hand-spinning of fine Pashmina yarn to the detailed embroidery that captures the cultural heritage of Kashmir.

Varuna Anand highlighted that the recent reduction in GST on handmade shawls from the earlier 12–22% slab to 5% has given a significant boost to the traditional handicraft sector, enabling artisans to reach wider markets and enhance livelihoods.

Singh commended the initiative for not only preserving India’s timeless craft traditions but also providing a platform for women entrepreneurs.