Key Takeaways
- GST reductions ranging from 5-18% on handlooms, handicrafts, dairy, and cement are stimulating demand, empowering artisans, generating jobs in industry and dairy, and promoting inclusive growth across Chhattisgarh.
- Cement Industry: GST cut to 18% reduces construction costs, boosts housing demand, and sustains 20,000-30,000 jobs.
- Tribal & Forest Crafts: 5% GST rate increases demand by 10-15%, potentially adding 5,000 jobs by 2026 and strengthening women-led self-help groups (SHGs).
- Dairy Sector: Lower taxes on packaged products drive consumption, support 15,000-20,000 jobs, and enable the National Dairy Development Board (NDDB) to expand processing capacity over sixfold by 2028.
Introduction
Chhattisgarh, carved out of Madhya Pradesh in 2000, stands as India’s ninth-largest state, home to over 25 million people. Nestled in central India, it boasts abundant forests, natural resources, and a vibrant tribal heritage. The state’s cultural tapestry is woven with intricate arts and crafts, including Bastar’s bell metal work, Raigarh’s bamboo artistry, and the renowned handwoven Kosa silk fabrics—symbols of enduring skill and sustainability.
Recent GST reforms are injecting new vitality into Chhattisgarh’s economy. By slashing tax rates on essential goods and traditional sectors, these changes lower input costs, invigorate consumer demand, and enhance the competitiveness of local products in domestic and international markets. The 5% GST slab for handlooms, handicrafts, and dairy eases the load on small-scale producers, fosters formalization, and spurs rural entrepreneurship. This aligns seamlessly with the state’s goals for inclusive development and sustainable progress.
Cement Industry
Chhattisgarh’s cement and building materials sector thrives in key districts like Korba, Raigarh, Bilaspur, Raipur, and Naya Raipur, fueled by rapid urbanization and infrastructure growth. As a cornerstone of the state’s economy, it generates substantial tax revenue, bolsters ancillary industries, and ranks among the top employers.
Employment Landscape
- The industry employs a mix of permanent staff (engineers, technicians, supervisors) and contractual or unskilled workers in roles such as mining, loading, kiln operations, packing, and transportation.
- Workers predominantly hail from rural or semi-urban areas with limited formal education, including many migrants from Odisha, Jharkhand, and Uttar Pradesh.
- Average monthly wages range from ₹18,000-₹35,000 for permanent roles and ₹8,000-₹15,000 for contract positions.
- Women’s involvement is limited, mainly in packaging and allied services.
- Overall, the organized sector provides 20,000-30,000 direct and indirect jobs, with 10,000-15,000 in direct employment at major plants and an equal number in supporting roles like transportation and mining.
- Driven by infrastructure projects, employment has grown 5-10% annually through capacity expansions.
The GST reduction from 28% to 18% makes cement more affordable, cuts construction costs, stimulates housing and infrastructure demand, and creates additional jobs in related sectors.
Handloom & Powerloom Sector
Chhattisgarh’s handloom industry is a vital cottage sector, intertwined with its cultural and economic identity. Complementing this, the MSME-driven powerloom segment contributes significantly to India’s textile ecosystem, one of the nation’s largest industrial employers.
Handloom Woven Fabrics
Districts like Janjgir-Champa, Raigarh, Raipur, Mahasamund, Bastar, and Sarguja anchor the state’s handloom hubs. Products range from terry toweling and woven terry fabrics to cotton handlooms in Raipur, Durg, Mahasamund, and Bastar, alongside the tussar and Kosa silk of Janjgir-Champa and Raigarh.
- It sustains livelihoods for nearly 1.5 lakh weavers, with a strong female presence in decentralized rural setups.
- Under the Prime Minister’s Employment Generation Programme (PMEGP), around 8,500 jobs have been created in handloom and allied industries over the past eight years (up to 2023).
- In 2023, the Union Ministry of Textiles sanctioned 51 projects under the National Handloom Development Programme (NHDP) to enhance skills and form groups for economically vulnerable artisans.
The GST cut to 5% revitalizes the sector, making handwoven sarees and Kosa/tussar silk more accessible and competitive globally. This boosts sales, empowers weavers against machine-made alternatives, and preserves Chhattisgarh’s weaving heritage.
Powerloom / Mill-Based Fabric Production
Powerloom activities, semi-organized and clustered in Raigarh, Bilaspur, Janjgir-Champa, Balodabazar, Mahasamund, Raipur, Bastar, and Sarguja, rely on small family or contract units with often outdated equipment.
- Men primarily operate looms, while women manage winding, finishing, and packaging.
- The workforce includes MSMEs and semi-skilled rural laborers, many from tribal and migrant communities with minimal formal education.
GST reforms reducing rates from 12%/18% to 5% provide a major lift, sustaining jobs in India’s second-largest employment sector. They lower input costs, improve margins, resolve inverted duties, ease working capital pressures, and promote formalization and exports.
Handicrafts & Traditional Arts Sector
Chhattisgarh’s handicrafts embody its tribal roots and artistic diversity, featuring metal, clay, wood, jewelry, textiles, and terracotta works that merge tradition with modern appeal.
Tribal & Forest Crafts
Centered in Bastar (including Kondagaon and Jagdalpur) and other tribal areas, this sector produces wooden artifacts, Dhokra metalwork, wrought iron, bamboo, terracotta, and bell metal crafts, drawing from the region’s cultural and natural bounty.
- Approximately 50,000–60,000 artisans statewide, with 70–80% (35,000-48,000) in tribal and forest crafts.
- Workers include full-time, part-time, and seasonal roles, mainly from Scheduled Tribes like Gond, Halba, Bhatra, and Maria.
- It offers self-employment and supplemental income, aiding poverty alleviation in forested regions.
- Annual revenue reaches ₹500–800 crore (2024), with 20-30% from exports to the US and Europe.
- Artisan registrations under the Pahchan Card Scheme grew 5–10% from 2022-2024, reaching 40,000, boosted by e-commerce and outlets like Shabari Emporia.
- Initiatives like NHDP, CHCDS, and PM Vishwakarma Scheme (2023) have added 5,000-7,000 jobs through training and infrastructure, with over 10,000 registrations and 1,000-2,000 direct beneficiaries in forest crafts.
The GST slash from 12%/18% to 5% is projected to hike demand by 10-15%, create 5,000 jobs by 2026, improve margins, and stabilize incomes—especially for SHG-organized artisans. Lower taxes on raw materials like tendu leaves further bolster tribal communities.
Traditional Arts Sector: Metal Handicrafts, Bell Metal, Wrought Iron, and Iron Craft
Practiced in Bastar, Raipur, and tribal zones, this includes GI-tagged Bastar Iron Craft (Dhokra). Promoted under ODOP, it sustains clusters in Bastar-Kondagaon.
- 15,000-30,000 artisans engaged, with over 150 in Kondagaon specializing in bell metal.
- The Agaria tribe (population ~67,000) remains active in iron smithing.
- Studies confirm thousands of households reliant on metal crafts.
The GST drop from 12% to 5% reduces costs, enhances sales and exports, and revives economic viability for tribal artisans, preserving endangered skills.
Packaged Dairy Products
Dairy farming is a lifeline in Chhattisgarh’s Raipur, Bilaspur, Durg/Bhilai, and tribal cooperatives, particularly for rural women. With over 1,068 societies, many women-led, it supports small landholders.
- Studies in Raipur show 70% with marginal holdings (<2.5 acres) and 60% with medium incomes; 68% lack formal training.
- The sector accounts for ~12.91% of registered manufacturing jobs (~15,000–20,000 statewide), with 1,500–3,000 in dairy processing (operators, testers, packers, logistics).
- NDDB aims to scale capacity from 79,000 kg/day to 500,000 kg/day by 2028, adding 2,000–5,000 jobs in processing and supply chains.
- Since 2023, schemes have created 500–1,000 jobs, focusing on women (71% of national dairy workforce).
- ~1,100 job openings in 2025 signal strong demand.
GST on products like paneer, curd, yogurt, and buttermilk reduced from 12% to 5% spurs demand, requires better cold chains, fosters businesses, and empowers women-led enterprises.
Conclusion
Chhattisgarh’s GST reforms—cutting rates on handlooms, handicrafts, arts, dairy, and cement—slash costs, ignite demand, and amplify competitiveness. They empower rural women, sustain artisans, bolster industrial jobs, boost exports, and drive formalization. By nurturing livelihoods, safeguarding traditions, and unlocking opportunities, these changes propel the state toward inclusive, sustainable development.