Bilal Veeri CNI

Srinagar, July 7: In a significant announcement for Jammu and Kashmir’s artisans and entrepreneurs, Union Commerce and Industry Minister Piyush Goyal has said that the government is likely to reduce the Goods and Services Tax (GST) on handloom and handicraft products from the current 12 percent to 5 percent. Goyal made this statement while addressing the FTII: Traders Conclave 2025 held in Srinagar.

The minister said that several delegations had raised concerns about the high GST on local crafts. He has advised them to formally submit their requests to the Finance Ministry and to him directly. Goyal assured that efforts will be made to explore ways of lowering the GST rate, which he believes will help revive and promote the traditional handloom and handicraft sectors in Jammu and Kashmir.

Goyal also revealed that a Centre of Excellence for Packaging and Design will soon be established in Jammu and Kashmir. This initiative aims to improve the packaging of local products such as pashmina shawls, handicrafts, handlooms, and horticulture goods. He mentioned that officials have been instructed to work with the Indian Institute of Packaging to start this project as soon as a suitable location is identified.

In addition, Goyal announced plans to set up another Centre of Excellence focused on cold storage technology, cold chain infrastructure, and encouraging new startups. He said the aim is to support individuals shifting from traditional trades to entrepreneurship through innovation and research. The new centre will also work on developing new technologies, products, and even fruit or seed varieties in collaboration with the Ministry of Agriculture.

To help local producers benefit from the growing demand for eco-friendly products, the minister said discussions will be held with NTPC and the Solar Energy Corporation to set up solar lighting or power generation facilities in the region. This would allow producers to export their goods as green products, potentially earning better prices in international markets.

In a separate post on social media platform X, Goyal said he also had detailed discussions with the MSME Development Forum in Jammu and Kashmir about how to improve local businesses. Topics included ways to enhance the competitiveness of MSMEs, make it easier to do business, and connect these enterprises to the national supply chain.

The minister further shared that he met with representatives from the Kashmir Chamber of Commerce and Industry and the Jammu-Kashmir Fruits and Vegetable Processing and Integrated Cold Chain Association (JKPICCA). These meetings focused on creating better opportunities for local industries, supporting agro-processing, and boosting J&K’s agricultural economy through sustainable industrial development.