Ladakh’s traditional industries, agriculture, handicrafts, and tourism sectors are set to benefit from a sweeping reduction in Goods and Services Tax (GST). The reforms lower GST from 12 per cent to 5 per cent on a wide range of products and services, aiming to provide relief to artisans, farmers, and small businesses while strengthening the region’s economy.
Goods and Services Tax (GST) reforms will reduce costs and broaden markets for Ladakh's artisans, farmers, and tourism operators, and safeguard local crafts, the government said on Wednesday.Rate cuts from 12 per cent to 5 per cent will enhance the competitiveness and affordability of authentic Pashmina, handwoven woollens, Thangka paintings, and apricot and sea buckthorn products, an official statement said.
The GST cut could enhance exports of Pashmina wool from the Changthang region, sustaining the livelihood of over 10,000 nomadic herders. The GST reduction is expected to boost the competitiveness of authentic Ladakhi pashmina against imported or machine-made alternatives, the statement further said. Production costs for handwoven woollens, Namda rugs in Leh and Kargil are also expected to drop, encouraging the revival of traditional handicraft practices.
The GST reduction from 12 per cent to 5 per cent on hotel tariffs up to Rs 7,500 per night makes travel and accommodation more affordable, particularly during the busy tourist season. This will support the growth of eco-tourism and local homestay economy, government said.Pashmina wool, produced in the Changthang region of Leh, sustains over 10,000 nomadic herders. Known for its warmth, softness, and fineness, Pashmina faces growing competition from machine-made alternatives. With GST on Pashmina products now reduced from 12 per cent to 5 per cent, the move is expected to enhance the competitiveness of authentic Ladakhi Pashmina and boost income stability for herders and weavers.
Handwoven woollens, Namda rugs, and woollen accessories such as felt boots, hats, and gloves from Leh, Kargil, and Changthang will also benefit. The GST cut from 12 per cent to 5 per cent on these items is expected to reduce production costs, encourage revival of traditional crafts, and provide greater market access for artisans.
Traditional Ladakhi carpentry, featuring intricately carved wooden altars, window frames, and furniture, is a source of livelihood for many marginalized communities in Leh and Kargil. Similarly, Ladakhi Thangka paintings crafted in monasteries across Leh, Alchi, and Hemis are vital to local cultural heritage. With GST on such handicrafts reduced from 12 per cent to 5 per cent, these handcrafted items are expected to become more affordable and market-competitive, supporting both artisans and preservation of Ladakh’s artistic traditions.
Tourism, a key pillar of Ladakh’s economy, directly employs over 25,000 people through homestays and small hotels across Leh, Nubra, Pangong, and Kargil. To support this sector, GST on hotel tariffs up to ₹7,500 per night has been brought down from 12 per cent to 5 per cent, making travel and accommodation more affordable and supporting eco-tourism and the local service economy.
Ladakh is India’s largest apricot producer, with Kargil, Leh, and Nubra Valley as primary production hubs. Over 6,000 families engaged in apricot farming and processing will benefit from the GST reduction from 12 per cent to 5 per cent on dried apricots, jams, oils, and related products, enhancing income and market competitiveness.
Sea buckthorn, cultivated largely by women-led Self-Help Groups in Leh, Nubra, and Changthang, is used in medicinal and nutritional products. Along with this, yak milk and cheese from Changthang and Nubra, and Leh berries used in health drinks and supplements, will also gain from the GST cut to 5 per cent down from the earlier 12 per cent supporting local self-sustainability and agro-processing.
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