According to the government, recent GST reforms will increase demand and profitability in Arunachal Pradesh’s top industries and sectors, such as horticulture, agriculture, processed foods, handicrafts, textiles, and furniture made of bamboo and cane. According to a statement, lower rates increase margins for thousands of tribal artisans, SHGs, and MSMEs by lowering consumer prices on processed foods by roughly 6–11% and bringing cost savings of Rs 560–Rs 7,000 on items like plywood, shawls, carpets, and yak-churpi.
Additionally, the reforms will improve access to both local and international markets, support traditional and GI-tagged goods, and encourage inclusive development, employment, and sustainable growth throughout the state. The GI-tagged Arunachal Orange, which has a unique sweet-sour flavor due to its high TSS and acidity, is grown in Arunachal Pradesh. It is also produced in processed forms including dried citrus, juices, and jams and jellies. According to the statement, the GST reduction on juices and jams from 12% to 5% lowers prices by 6.5%, assisting processors, lowering post-harvest losses, and increasing competitiveness.
GST reforms have reduced kiwi prices by ~6.5%, boosting MSME participation and supporting the Kiwi Mission 2025. Arunachal Pradesh, producing over 50% of India’s kiwis, also benefits from lower GST (5%) on agri-inputs like tractors, cutting costs for large cardamom growers. For the Idu Mishmi tribe, tax cuts of up to ₹560 on ₹8,000 shawls help preserve traditional weaving and improve artisan incomes.
