The Biz Reporter
Proposed GST Hike Threatens Kashmir’s Iconic Shawl Industry, Artisans Warn of Devastating Impact
New Delhi, Dec 5: The potential increase in Goods and Services Tax (GST) on high-value textiles could spell economic disaster for Kashmir’s renowned shawl artisans, industry experts and craftspeople warned today.
The Government of India’s Group of Ministers (GoM) is considering raising the GST slab on textiles priced above Rs 10,000 from the current rate to 28%, a move that could critically undermine the already fragile pashmina shawl manufacturing sector.
Potential Economic Fallout
“This proposed GST hike will be nothing short of a death blow to our traditional craft,” said Abdul Rashid, a third-generation shawl artisan from Srinagar. “Our intricate pashmina shawls, which take months to create, will become unaffordable for most buyers.”
Industry Challenges
The Kashmiri textile sector is already grappling with multiple challenges:
- Proliferation of counterfeit “Kashmiri” shawls in the market
- Declining domestic and international demand
- Increased production costs
- Competition from machine-made alternatives
Financial Impact
If implemented, the proposed 28% GST would:
- Significantly increase the final retail price of premium shawls
- Potentially reduce consumer demand
- Threaten the livelihoods of thousands of skilled artisans
Expert Perspectives
Textile economist Dr. Rajesh Kumar commented, “This tax increase could permanently damage a centuries-old craft that represents India’s rich cultural heritage. The government must reconsider this proposal.”
Industry Plea
Local artisan associations are urging policymakers to:
- Maintain current GST rates for traditional handcrafted textiles
- Implement stronger protections against counterfeit products
- Provide financial support to preserve this endangered craft
Conclusion
As the GST Council deliberates, the future of Kashmir’s iconic shawl industry hangs in the balance, with potential long-term consequences for cultural preservation and artisan communities.
Keywords: Kashmir Shawls, GST Hike, Textile Industry, Pashmina Artisans, Indian Handicrafts
