On Sunday (July 6th), Union Minister Piyush Goyyal said he would recommend reducing the goods and services tax (GST) of handicrafts and hand-woven products to support the Jammu and Kashmir sectors.
The Minister said the issue was raised by several delegations of FTII.
Goyal advised the Ministry of Finance to submit a formal request and ensured that efforts would be made to reduce the GST rate for these items from 12% to 5%.
The step will help promote the handicrafts and handwoven industries, especially in Jammu and Kashmir, the minister said.
In another update on social media platform X, Goyal said it had a detailed discussion with Jammu and Kashmir’s MSME development forum. They discussed various proposals to strengthen local businesses, including steps to improve the competitiveness of MSMEs, simplify business processes and connect them more appropriately to the domestic supply chain.
He also met with members of the Kashmir Chamber of Commerce and Industry to discuss ways to empower local industries, promote economic growth and create a more business-friendly environment.
Additionally, the Minister met with representatives of the Jammu and Kashmir Fruit and Vegetable Processing and Integrated Cold Chain Association (JKPICCA) in Srinagar. He said he discussed strategies to support industrial development in the cold chain and agricultural processing sectors, which are essential to strengthening the region’s agricultural economy and increasing exports.
Here are some highlights of what the Minister said at the event:
- Using modern design and technology, you need to set up a packaging unit that promotes local products, such as handicrafts, gardening, pashmina shawls, and hand-woven items more effectively.
- The centre of packaging and design excellence will soon be established in Jammu and Kashmir.
- The staff were asked to work with the Indian Packaging Institute to launch a project focused on improving packaging and design quality. Currently, a suitable location for this centre has been identified.
- We will talk to NTPC and Solar Energy Corporation to investigate the possibility of installing solar lighting and power generation facilities in the area. This initiative will help producers label their products as environmentally friendly and help them get better prices in international markets.
- There is debate about storage technology, improving cold chain infrastructure, and alternative set-ups of excellence aimed at supporting new startups and entrepreneurs.
