GST rate cut to boost MSMEs, push exports

New Delhi, Sep 5: By lowering GST rates across industries such as leather, footwear, paper, textiles, handicrafts, toys, agro-processing, and logistics, the government has reduced compliance costs, enhanced affordability for consumers, and improved margins for MSMEs, according to an official statement issued on Friday.

These measures not only ease the cost of doing business but also align with broader national priorities of promoting exports, supporting artisans and farmers, and encouraging sustainable manufacturing.

Collectively, the reforms reinforce India’s growth trajectory by creating a more efficient, inclusive, and globally competitive tax framework, the statement said.

The cut in GST from 12 per cent to 5 per cent will boost the leather and footwear sector, which is a key employer in India, with a strong export base. GST rationalisation here reduces the burden on manufacturers and makes products more accessible to consumers. Lower taxation is expected to improve the global competitiveness of Indian footwear and leather exports.