GST cuts to boost Ladakh's Pashmina, apricot, Namda and tourism economy: PIB backgrounder
A PIB backgrounder of 22 October 2025 says the GST cut from 12% to 5% on items such as Pashmina, Namda rugs, apricots and hotel tariffs up to ₹7,500 will help Ladakh's artisans, farmers and homestays.
Summary
A PIB backgrounder of 22 October 2025 explains how the GST reduction from 12% to 5% on many goods and services will help Ladakh's economy. Pashmina wool from the Changthang region of Leh sustains over 10,000 nomadic herders. Namda rugs and handwoven woollens from Leh and Kargil, Thangka paintings from monasteries in Leh, Alchi and Hemis, and Ladakhi woodcraft also move to 5%. Ladakh is India's largest apricot producer, with over 6,000 farming families in Kargil, Leh and Nubra benefiting. Sea buckthorn processed by women's self-help groups, yak cheese from Changthang and Nubra, and organic produce from Sham Valley also gain. Tourism and homestays, employing over 25,000 people, benefit from 5% GST on hotel tariffs up to ₹7,500 a night.
Key facts
- GST change
- 12% → 5% on listed items
- Pashmina
- Changthang (Leh); 10,000+ nomadic herders
- Apricots
- Ladakh is India's largest producer; 6,000+ families
- Hotels
- 5% on tariffs up to ₹7,500/night; 25,000+ jobs
- Thangka
- Monasteries in Leh, Alchi, Hemis
- Others
- Namda rugs, sea buckthorn, yak cheese, woodcraft
Practice MCQs 3 questions
According to the PIB backgrounder of October 2025, Ladakh is India's largest producer of which fruit?
Show answer
Correct answer: D — Apricot
PIB backgrounder: Ladakh is India's largest apricot producer, with Kargil, Leh and the Nubra Valley as its main production hubs.
In which region of Leh is Ladakh's Pashmina wool produced, sustaining over 10,000 nomadic herders?
Show answer
Correct answer: A — Changthang
PIB backgrounder: Pashmina wool is produced in the Changthang region in Leh, sustaining over 10,000 nomadic herders.
Consider the following statements about the GST changes described for Ladakh (October 2025): 1. Hotel tariffs up to ₹7,500 per night now attract 5% GST. 2. GST on Pashmina products was reduced from 18% to 12%. Which of the statements given above is/are correct?
Show answer
Correct answer: A — 1 only
Only 1 is correct. PIB backgrounder: GST on hotel tariffs up to ₹7,500 per night is 5%; GST on Pashmina was reduced from 12% to 5%, not 18% to 12%.