GST 2.0: A Boon for Bengal’s Economy

The GST Council’s landmark move in September 2025 to simplify India’s taxation system, popularly called GST 2.0 has brought a two-rate structure of 5% and 18%, with essentials exempted. Beyond easing compliance, this reform has opened up fresh opportunities for Bengal’s economy, impacting sectors that are deeply tied to its cultural identity, employment base, and global trade presence.

Key Sectors That Benefit:

1. Nakshi Kantha

One of Bengal’s most cherished embroidery traditions, Nakshi Kantha is practised across rural districts like Birbhum, Murshidabad, and Nadia. The reduction in GST from 12% to 5% makes these handcrafted textiles more affordable while boosting competitiveness against mass-produced imitations in international markets such as Europe, the US, and Japan. This will directly benefit rural women artisans, many of whom work through self-help groups.

2. Jute Industry

As the heart of India’s jute industry, Bengal supports over 2.5 lakh mill workers and 40 lakh farmers. With GST cut to 5%, eco-friendly jute bags and products will become cheaper, strengthening their edge over plastic and synthetic substitutes. This is expected to spur both domestic demand and exports.

3. Hosiery & Readymade Garments

Kolkata is the birthplace of India’s hosiery industry, with major clusters in Metiabruz, Baruipur, and Siliguri employing more than 5 lakh people. The revision of the 5% GST slab threshold to ₹2500 will make products more affordable, helping the sector capture a wider market.

4. Darjeeling Tea

Known as the "Champagne of Teas," Darjeeling’s world-renowned black tea and its extracts have seen GST on value-added products reduced from 18% to 5%. This will not only make premium blends more accessible but also enhance competitiveness in global beverage markets.

5. Malda Mangoes

With 4.5 lakh people linked to cultivation and trade, Malda’s mango economy is set for a boost. Processed mango products—juices and jams—now attract just 5% GST, lowering retail prices and encouraging consumption. GI-tagged mango varieties, already popular in the Middle East, UK, and Europe, will gain traction in newer export markets like Sweden and New Zealand.

6. Shantiniketan Leather Goods

The famous Santiniketan-Bolpur leather cluster, renowned for hand-embossed batik and applique work, benefits significantly. With MSMEs and artisans at its core, and Kolkata’s larger leather hub employing nearly 5 lakh people, the sector is poised for stronger domestic sales and exports.

Bengal at the Centre of GST 2.0’s Impact

From rural artisans to global exporters, GST 2.0 promises to make Bengal’s economy more competitive, inclusive, and future-ready. By easing the tax burden, the reform empowers traditional crafts, boosts employment-heavy sectors, and helps Bengal strengthen its position in both domestic and international markets.