Union Minister Piyush Goyal on Sunday (July 6) stated that he would recommend reducing the Goods and Services Tax (GST) on handicrafts and handloom products to support the sector in Jammu and Kashmir.

The minister stated that the matter was raised by a few delegations at the FTII: Traders Conclave – 2025 in Srinagar.

Goyal advised them to submit a formal request to the Finance Ministry and assured them that efforts would be made to reduce the GST rate on these items from 12 per cent to 5 per cent.

This step would help in the promotion of handicraft and handloom industries, particularly in Jammu and Kashmir, the minister said.

In a separate update on social media platform X, Goyal stated that he had held a detailed discussion with the MSME Development Forum of Jammu and Kashmir. They discussed various suggestions to strengthen local businesses, including steps to improve the competitiveness of MSMEs, simplify business processes, and better connect them to national supply chains.

He also met with members of the Kashmir Chamber of Commerce and Industry to discuss ways to empower local industries, promote economic growth, and create a more business-friendly environment.

Additionally, the minister met with representatives of the Jammu-Kashmir Fruits and Vegetable Processing and Integrated Cold Chain Association (JKPICCA) in Srinagar. He said they discussed strategies to support industrial development in the cold chain and agro-processing sectors, which are crucial for strengthening the region’s agricultural economy and increasing exports.