(MENAFN- IANS) New Delhi, Oct 10 (IANS) The GST rate cuts aimed at driving inclusive growth will provide a big push to Manipur's economy, rooted in small-scale industries, traditional crafts, and agro-based livelihoods, according to an official statement issued on Friday.

From coffee cultivation in the highlands of Ukhrul and Senapati to bamboo crafts and stone carving in Churachandpur and Imphal, the state's diverse economic activities are driven largely by regional communities.

By lowering input costs and encouraging demand, the GST rate cuts to a mere 5 per cent, aim to make Manipur's unique products more competitive in both domestic and global markets.

The reduction in GST on packaged coffee from 18 per cent to 5 per cent brings substantial relief across Manipur's coffee industry. Districts such as Ukhrul, Senapati, and Chandel are important hubs for coffee cultivation, particularly for high-quality Arabica varieties.

Around 10,000 farmers are engaged in coffee cultivation. The sector generates additional employment in processing, packaging, and distribution networks that support the value chain. The reforms are expected to boost profitability and strengthen competitiveness across domestic and export markets.

Manipur's bamboo and cane crafts are traditionally made by skilled communities in Churachandpur, Ukhrul, and Tamenglong. With approximately 1.2 lakh artisans, the sector provides supplementary income to rural households.

The reduction of GST from 12 per cent to 5 per cent on furniture, baskets, mats, and other wooden crafts, will directly lower product prices and stimulate demand in both urban and rural markets. The reforms also strengthen SMEs and SHGs in the craft sector.

Handloom textiles such as Phanek, Innaphi, and Rani are primarily crafted by women artisans from regional communities across Imphal, Thoubal, Bishnupur, and Senapati. These crafts not only sustain traditional weaving practices but also provide steady income to approximately 2.5 lakh weavers. The reduction in GST from 12 per cent to 5 per cent on handloom woven fabrics is expected to directly improve affordability for consumers while increasing market competitiveness for artisans.

Imphal, Churachandpur, and Ukhrul are central to communities renowned for their skill in stone carving and sculpture. Around 50,000 artisans are engaged in this traditional craft.

The GST cut on ceramic tableware significantly lowers the cost of raw materials and finished goods. This tax relief improves affordability and global competitiveness of Manipur's stone products.

The state's processed food industry is driven by numerous small and medium enterprises (SMEs) and self-help groups (SHGs) and employs around 1.5 lakh workers. The reduction in GST to 5 per cent on processed food items such as pickles, bamboo shoots, fermented foods, vegetable preparations, etc., is a major boost for producers and consumers alike.

Similarly, Manipur's dairy farming in Imphal, Thoubal, and Bishnupur districts, is largely managed by small-scale rural and tribal communities, employing over 1 lakh farmers and cooperative members.

The GST reduction to zero on ghee, butter, paneer and cheese offers significant relief to consumers by making essential dairy products more affordable which will result in higher demand for these intems.

The revised rates are also expected to lower production costs. This will improve profit margins for farmers and cooperatives, enhancing their competitiveness in both domestic and export markets. Together, these reforms support a balanced and inclusive growth, empowering India's Northeastern states to contribute more strongly to the nation's economy, the statement added.

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