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 release 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, the release said.

Traditional Ladakhi carpentry and Thangka paintings from monasteries will benefit from enhanced price competitiveness. Ladakhi Thangka paintings, often crafted in the monasteries in Leh, Alchi, and Hemis, are traditional Buddhist scroll artworks used for meditation and decoration.

The GST reduction benefits over 6,000 farming families engaged in apricot cultivation and processing by improving the competitiveness of locally produced apricots and their value-added products, such as dried apricots, jams, and oils, which make them more marketable. Ladakh is India’s largest apricot producer, with Kargil, Leh, and the Nubra Valley serving as its main production hubs.

Further, the reforms will also bolster markets for sea buckthorn products primarily produced by women-led self-help groups. Yak cheese, Leh berry health drinks, supplements, and organic farm products are other products buoyed by the GST reforms.