GST reforms to boost Goa's tourism, pharma, cashew and GI-tagged produce
A PIB explainer on 12 October 2025 said lower GST rates would cut costs across Goa's economy, where tourism contributes 16.43% of GSDP and pharmaceuticals make up 51% of merchandise exports.
Summary
A PIB explainer on 12 October 2025 set out how GST rationalisation would help Goa. Tourism contributes 16.43% of Goa's GSDP and, as of March 2025, employed about 2.5 lakh people, nearly 40% of the workforce; lower GST on hotel inputs and on fruit juices (12% to 5%) helps shacks and cafés. GST on small cars (up to 1,200 cc) and bikes (up to 350 cc) fell from 28% to 18%, cutting on-road costs by about 7.8% for taxi and rental operators. Drugs and pharmaceuticals made up 51% of Goa's merchandise exports in 2023-24, and many pharma inputs moved from 18% to 5%. Cement fell from 28% to 18%. Processed products from GI-tagged items such as Khola chilli (Canacona), Harmal chilli (Pernem), Moira banana and Agassaim brinjal now attract 5% instead of 18%.
Key facts
- Tourism
- 16.43% of GSDP; ~2.5 lakh jobs (~40% of workforce)
- Small cars/bikes
- GST 28% → 18% (~7.8% lower on-road cost)
- Pharma
- 51% of Goa's merchandise exports (2023-24)
- Cement
- 28% → 18%
- GI produce (processed)
- Khola chilli, Harmal chilli, Moira banana, Agassaim brinjal: 18% → 5%
- Fruit juices
- 12% → 5%
Practice MCQs 3 questions
According to a PIB explainer of October 2025, tourism contributes about what share of Goa's GSDP?
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Correct answer: D — 16.43%
PIB: tourism contributes 16.43% to the state's GSDP; about 40% is the tourism sector's share of Goa's workforce.
In 2023-24, which sector accounted for 51% of Goa's total merchandise exports?
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Correct answer: B — Drugs and pharmaceuticals
PIB: in 2023-24, drugs and pharmaceuticals made up 51% of Goa's total merchandise exports.
Consider the following statements about GI-tagged products of Goa mentioned in the October 2025 GST explainer: 1. The Khola chilli is cultivated and processed in Canacona. 2. The Harmal chilli is cultivated in the Moira area of Bardez. Which of the statements given above is/are correct?
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Correct answer: A — 1 only
Only 1 is correct. PIB: Khola chilli comes from Canacona (Khola); Harmal (Pernem) chilli is grown in the Harmal–Arambol region of Pernem, while Moira (Bardez) is known for the Myndoli banana.