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GST Boosts Chhattisgarh Growth Across Cement Handloom & Dairy

RR Team, October 18, 2025October 18, 2025
Chhattisgarh is witnessing a surge in economic growth as recent GST reforms lower rates across key sectors including cement, handlooms, handicrafts, and dairy. These measures are reducing production costs, boosting consumer demand, creating thousands of jobs, and empowering women-led rural enterprises, driving inclusive development across the state.

Cement Industry Sees Job and Demand Growth

The state’s cement sector, spread across Korba, Raigarh, Bilaspur, Raipur, and Naya Raipur, supports 20,000–30,000 direct and indirect jobs. Permanent workers earn ₹18,000–₹35,000, while contract laborers make ₹8,000–₹15,000 monthly. With the GST rate on cement reduced from 28% to 18%, construction costs are lower, housing demand is rising, and new employment opportunities in infrastructure are emerging.

Handloom & Powerloom Sector Gets a Boost

Chhattisgarh’s handloom industry, a crucial cottage sector, employs nearly 1.5 lakh weavers, many women, in districts such as Janjgir-Champa, Raigarh, Raipur, Mahasamund, Bastar, and Sarguja. The GST cut to 5% enhances affordability and competitiveness of Kosa and Tussar silk fabrics, stimulating sales and supporting PMEGP and NHDP-backed projects.

Powerloom clusters in Raigarh, Bilaspur, and Janjgir-Champa benefit similarly. Reduced tax rates ease input costs, support MSMEs, formalize rural employment, and boost exports, sustaining livelihoods in semi-organized textile units.

Handicrafts & Traditional Arts Thrive

Chhattisgarh’s tribal and forest-based handicrafts, including Dhokra metal, bell metal, wrought iron, bamboo, and wood crafts, involve 35,000–48,000 artisans, mainly from Scheduled Tribes. Lower GST from 12%/18% to 5% is increasing demand by 10–15% and is expected to generate 5,000 new jobs by 2026.

Programs like PM Vishwakarma, NHDP, and ODOP are helping artisans access tools, training, credit, and markets. The reforms improve margins, stabilize incomes, and preserve traditional skills while supporting women-led SHGs in Bastar and Kondagaon.

Dairy Sector Expansion and Women Empowerment

Dairy farming in Chhattisgarh, especially in Raipur, Bilaspur, and Durg/Bhilai, is a key livelihood for women in rural and tribal communities. The GST cut on packaged dairy products like paneer, yogurt, and buttermilk from 12% to 5% is expected to stimulate consumption, expand processing capacity sixfold by 2028 through NDDB partnerships, and support 15,000–20,000 jobs.

Women-led cooperatives, already significant in the state, will benefit from increased production, cold-chain infrastructure, and market access, enhancing income and entrepreneurship in rural areas.

Driving Inclusive Growth Across Chhattisgarh

By lowering tax rates on cement, handlooms, handicrafts, and dairy, GST reforms are creating a ripple effect—making local products more competitive, boosting employment, supporting women-led enterprises, sustaining artisan livelihoods, and promoting exports. Chhattisgarh is thus poised for inclusive socio-economic growth while preserving its rich tribal and craft heritage.

News #CementIndustry#DairySector#EconomicGrowth#GSTReforms#HandloomIndustry#InclusiveDevelopment#MSME#TribalArtisans#WomenEmpowerment

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