Tripura’s GST rate cuts boost handloom, tea, sericulture, and pineapple industries, empowering artisans, farmers, and women, enhancing exports, reducing costs, and strengthening the state’s economy while preserving cultural heritage and promoting market-oriented growth.
Tripura’s economy is set to receive a significant boost as the recent Goods and Services Tax (GST) revisions lower costs and enhance market access for several key sectors, including handloom, tea, sericulture, and food processing, the state government announced on Thursday.
The reforms target traditional and high-value sectors, empowering tribal women, artisans, and small farmers while promoting value addition and exports. From GI-tagged Risa and Pachra–Rignai textiles to Tripura Queen Pineapple products and sericulture goods, the GST rejig is designed to strengthen Tripura’s local industries and cultural heritage.
Handloom Sector Gains
The government highlighted that over 1.3 lakh households engaged in handloom work will directly benefit from reduced GST rates. GI-tagged Risa and Pachra-Rignai fabrics are now taxed at 5 per cent, while stitched apparel made from these textiles, priced up to Rs 2,500, has been moved from the earlier 12 per cent slab to 5 per cent.
“This 7-percentage-point reduction will not only increase income opportunities for rural women but also preserve Tripura’s rich textile heritage,” the official statement said. By making locally woven garments more competitive, these measures aim to expand market reach both nationally and internationally.
Tea Industry Sees Relief
Packaged and instant tea, a vital segment of Tripura’s agrarian economy, has also seen tax reductions to 5 per cent. The state’s 54 tea estates and approximately 2,755 small tea growers participating in auctions in Guwahati and Kolkata, as well as exporters to Bangladesh, the Middle East, and Europe, are expected to benefit.
Lower taxation will enhance the profitability of small-scale tea growers, enabling them to compete effectively in both domestic and global markets. This is projected to boost local employment and strengthen the supply chain across the state.
Sericulture Boost
Sericulture, involving around 15,550 farmers, will experience reduced costs throughout the silk value chain. From cocoon cultivation to raw silk production and operation of small-scale reeling units, silk-based products will now attract just 5 per cent GST.
Officials believe the reduction will make Tripura’s silk products more competitive in national and international markets while supporting sustainable livelihoods for farmers and promoting indigenous silk craftsmanship.
Food Processing and Pineapple Exports
The food-processing sector, particularly fruit and vegetable juices, is set to benefit from a 7 per cent reduction in GST, including the renowned GI-tagged Tripura Queen Pineapple. Currently, around 2,848 food and agro-processing units operate across the state, and this reform is expected to stimulate growth in packaging, processing, and export activities.
Tripura’s pineapple exports have already demonstrated strong potential. Between FY 2018–19 and FY 2024–25, the state exported roughly 73 metric tonnes of pineapple to Dubai, Oman, Qatar, and Bangladesh, while supplying about 15,000 metric tonnes to other Indian states. The GST reduction is expected to further encourage value addition, turning Tripura’s fruit sector into a more market-driven, export-oriented ecosystem.
Government Vision
“These reforms underline the government’s commitment to making Tripura a hub for traditional crafts, agriculture, and value-added products,” an official said. By easing tax pressures, the state hopes to strengthen local entrepreneurship, boost rural incomes, and increase export revenues, fostering inclusive economic growth across the region.
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With these changes, Tripura aims not only to preserve its cultural heritage but also to integrate traditional sectors with modern economic opportunities, ensuring long-term sustainability and prosperity for local communities.
