| Key Takeaways<\/strong>Hill produce boost<\/strong> as GST cut to 5%<\/strong> on Pahari Toor Dal, Red Rice<\/strong>, and Lakhori Mirchi<\/strong> supports small farmers across 13 hill districts<\/strong>.Tourism relief<\/strong> as GST on hotel tariffs up to \u20b97,500 drops to 5%, benefiting 80,000 people<\/strong> in key destinations.Crafts revival as Aipan, Ringal, and woollen products<\/strong> move to 5% GST, supporting women-led ventures and traditional artisans.Auto boost<\/strong> with GST down from 28% to 18%<\/strong>, making vehicles 8\u201310% cheaper<\/strong> and supporting 50,000 jobs<\/strong>.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n Introduction<\/strong><\/p>\n\n\n\n Nestled in the Himalayas, Uttarakhand<\/strong> is a state where terraced farms meet spiritual tourism<\/strong>, and ancient crafts blend with emerging industries. From the red rice fields<\/strong> of Purola<\/strong> to the bustling homestays of Nainital and Mussoorie<\/strong>, the state\u2019s economy reflects a rich balance of nature, tradition, and enterprise.<\/p>\n\n\n\n The recent GST rate rationalisation<\/strong> provides a timely boost to this hill economy<\/strong>, reducing taxes across agriculture, tourism, crafts, and manufacturing<\/strong>. By lowering rates on key goods and services such as Pahari Toor Dal, Red Rice, Handicrafts, Woollen Garments, and Hospitality<\/strong>, the reforms aim to improve affordability, empower small producers, and attract investment to the state\u2019s eco-friendly and high-value sectors.<\/p>\n\n\n\n The reform aligns with Uttarakhand\u2019s vision of sustainable growth<\/strong>, fostering livelihoods in the hills while strengthening emerging industrial hubs in the plains.<\/p>\n\n\n\n Agriculture & Local Produce<\/strong><\/p>\n\n\n\n Pahari Toor Dal<\/strong><\/p>\n\n\n\n Grown across Chamoli, Almora, Tehri, Nainital, and Pithoragarh, Pahari Toor Dal<\/strong> is cultivated by small rain-fed farmers as part of the traditional Barahnaja mixed cropping system. Known for being organic and locally reputed, it is an essential ingredient in Uttarakhand\u2019s traditional cuisine and is cultivated extensively across 13 hill districts<\/strong>.<\/p>\n\n\n\n With the GST rate reduced from 12% to 5%<\/strong>, prices are expected to become more affordable, making Pahari Toor Dal<\/strong> more competitive in organic and health food markets<\/strong>. This change is expected to encourage sustainable hill farming and improve income prospects for small and marginal farmers.<\/p>\n\n\n\n Uttarakhand Red Rice<\/strong><\/p>\n\n\n\n Cultivated in Purola and Mori<\/strong>, Uttarakhand Red Rice<\/strong> is known for its traditional value and contribution to hill agro-biodiversity. With the GST rate reduced from 12% to 5%<\/strong>, prices are expected to become more competitive, particularly in packaged and health food markets. The change supports nearly 4,000 people<\/strong> directly and indirectly engaged in red rice farming<\/strong>, generating local employment and promoting sustainable hill agriculture.<\/p>\n\n\n\n Almora Lakhori Mirchi<\/strong><\/p>\n\n\n\n Tourism & Cottage Industries<\/strong><\/p>\n\n\n\n Tourism & Homestays<\/strong><\/p>\n\n\n\n Tourism<\/strong>, including hotels and restaurants, contributes 13.57% to Uttarakhand\u2019s GSDP<\/strong> and provides employment to nearly 80,000 people<\/strong> directly and indirectly. With the GST rate on hotel tariffs up to \u20b97,500 reduced from 12% to 5%<\/strong>, the reform is expected to make travel more affordable and benefit small hotels, restaurants, and homestays across Nainital, Mussoorie, Auli, Chopta, Munsyari, Haridwar, and Rishikesh<\/strong>.<\/p>\n\n\n\n Aipan Art & Decorative Handicrafts<\/strong><\/p>\n\n\n\n Practised across the Kumaon region<\/strong>, including Almora, Bageshwar, and Nainital<\/strong>, Aipan<\/strong> is a traditional wall and floor art now adapted into bags, wall hangings, and gift items. With the GST rate reduced from 12% to 5%<\/strong>, the reform is expected to benefit around 4,000 people<\/strong>, mainly women-led ventures, while supporting GI-tag<\/strong> promotion and expanding local handicraft markets.<\/p>\n\n\n\n Hand-Knitted Woollen Garments<\/strong><\/p>\n\n\n\n Across Uttarakhand\u2019s hill districts<\/strong>, locally hand-knitted sweaters, caps, and socks<\/strong> form an important seasonal cottage industry led by hill women<\/strong>. With the GST rate reduced from 12% to 5%<\/strong>, prices are expected to fall by 6\u20137%<\/strong>, supporting around 10,000 livelihoods<\/strong> and helping small producers earn better returns during the peak tourist season.<\/p>\n\n\n\n Ringal (Hill Bamboo) Craft<\/strong><\/p>\n\n\n\n Produced mainly in Pithoragarh, Champawat, and Nainital<\/strong>, Ringal, a local dwarf bamboo, is used to make baskets, trays, and utility items<\/strong>. With the GST rate reduced from 12% to 5%<\/strong>, the reform supports SC\/ST communities<\/strong> engaged in Ringal-based handicrafts<\/strong>. A study in the Garhwal Himalaya found that about 47.65% of hill families earn some income from Ringal<\/strong> or bamboo craft work, underscoring its role in sustaining rural livelihoods.<\/p>\n\n\n\n Traditional Woollen Products (Pankhi, Shawls, Stoles)<\/strong><\/p>\n\n\n\n Handmade from local sheep wool in Chamoli, Uttarkashi, and Bageshwar<\/strong>, these traditional woollen items are integral to Uttarakhand\u2019s craft heritage and rural livelihoods. The GST reduction from 12% to 5%<\/strong> is expected to boost sales through local fairs and online platforms, helping preserve traditional crafts and support hill women artisans who depend on this seasonal cottage industry.<\/p>\n\n\n\n Industry & Manufacturing<\/strong><\/p>\n\n\n\n Food Processing<\/strong><\/p>\n\n\n\n Uttarakhand has 383 registered food processing units<\/strong>, primarily located in Rudrapur<\/strong>, employing<\/strong> nearly 30,000 people<\/strong>. The GST rate reduction from 12% to 5%<\/strong> is expected to improve margins, encourage value addition, and promote investment in sectors such as fruit processing, herbal products, and organic foods, strengthening the state\u2019s agro-industrial base.<\/p>\n\n\n\n Automobile Sector<\/strong><\/p>\n\n\n\n The automobile manufacturing belt across Pantnagar, Rudrapur, Haridwar, and Kashipur employs nearly 50,000 people<\/strong> directly and indirectly. With the GST rate reduced from 28% to 18%<\/strong> on vehicles up to 1200cc (petrol) and 1500cc (diesel), prices are expected to fall by around 8\u201310%<\/strong>. This will stimulate domestic demand, support manufacturers, and create additional employment opportunities across the automobile value chain.<\/p>\n\n\n\n Medical Device Park<\/strong><\/p>\n\n\n\n Conclusion<\/strong><\/p>\n\n\n\n The GST reforms unlock wide-ranging benefits across Uttarakhand\u2019s economy<\/strong>, from small hill farmers cultivating traditional crops to women artisans preserving Aipan and Ringal crafts, and from homestay owners in Rishikesh to industrial workers in Rudrapur.<\/p>\n\n\n\n By reducing tax burdens and improving competitiveness, the reforms will strengthen livelihood security, tourism, MSME growth, and green entrepreneurship<\/strong>. Together, these measures bridge the gap between the mountain and the market, advancing Uttarakhand\u2019s vision of inclusive, sustainable, and self-reliant development.<\/p>\n\n\n\n |
![\"\"\/](\"https:\/\/static.pib.gov.in\/WriteReadData\/userfiles\/image\/image0034OSG.jpg\")
<\/figure>\n\n\n\n![\"\"\/](\"https:\/\/static.pib.gov.in\/WriteReadData\/userfiles\/image\/image004Y6OW.jpg\")
<\/figure>\n\n\n\n![\"\"\/](\"https:\/\/static.pib.gov.in\/WriteReadData\/userfiles\/image\/image005FOF6.jpg\")
<\/figure>\n\n\n\n