Agriculture and Food Processing
Bihar produces 80–90% of India’s makhana, sustaining over 10 lakh families. GST cuts on makhana-based snacks from 12% to 5% are expected to reduce costs by 6–7%, improving domestic and export competitiveness. Muzaffarpur’s GI-tagged Shahi Litchi also benefits from GST reduction on juices, jams, and pickles from 12% to 5%, easing costs by around 6–7% and promoting local processing.
Food processing MSMEs in Patna, Hajipur, and Bhagalpur, including micro-units and women-led SHGs, will see lower tax rates on biscuits (18% to 5%) and snacks (12% to 5%), supporting 6–11% cost savings and enhanced market access.
The dairy sector, supporting 9.6 lakh farmers under Sudha, benefits from GST-free UHT milk and paneer, reduced rates on ghee and butter (12% to 5%), and ice-cream (18% to 5%). This is expected to reduce costs by 5–13%, strengthening cooperative networks, easing working capital pressures, and making products more affordable across Bihar and East India.
Handlooms and Handicrafts
Bihar’s rich cultural heritage gains from GST cuts. Bhagalpuri silk weavers, Madhubani painters, Sujini embroiderers, Sikki grass artisans, and Patharkatti stone craft practitioners will enjoy 2–13% cost reductions. These measures improve affordability for consumers, increase artisan incomes, and strengthen global competitiveness.
Bamboo and cane crafts, produced in Vaishali, Madhubani, Jamui, and Gaya, also see 6–7% tax relief, enhancing accessibility and reducing reliance on plastic substitutes.
Fertilisers, Machinery, and Industrial Growth
GST reductions on fertilisers, micronutrients, and farm machinery (tractors, pumps, irrigation equipment) range from 5–13%, benefiting small and marginal farmers by improving affordability and productivity. Bihar’s rail manufacturing sector, including Madhepura and Harnaut units, will see 6–7% cost relief on inputs, enhancing efficiency in locomotive production and maintenance.
Emerging Sectors: AYUSH and Honey
Bihar’s AYUSH sector and honey clusters will benefit from 5–13% GST relief, boosting affordability and market reach. Women-led SHGs and small MSMEs are expected to gain from reduced tax burdens, supporting rural livelihoods and local economic growth.
Conclusion
The GST rate rationalisation in Bihar will ease costs for essentials like food, dairy, and handicrafts, strengthen MSMEs, and support livelihoods in both traditional and emerging sectors. By enhancing competitiveness and sustaining incomes, the reforms align with the vision of Atmanirbhar Bharat and Viksit Bharat 2047.