GST reforms and Punjab: 12% → 5% on phulkari, woollens, Punjabi jutti, dairy, dry fruits and Ludhiana bicycles
A PIB explainer of 7 October 2025 says GST cuts from 12% to 5% on Punjab's textiles, handicrafts such as GI-tagged phulkari, footwear, dairy, agro products and bicycles will make them cheaper and more competitive.
Summary
A PIB explainer of 7 October 2025 sets out how GST cuts from 12% to 5% affect Punjab across textiles, handicrafts, footwear, metalware, dairy, agro products and bicycles. Phulkari, a GI-tagged embroidery craft practised mainly in Amritsar and Patiala by women-led households, employs about 20,000 artisans. Woollen shawls and stoles from Ludhiana and Amritsar employ nearly 25,000 workers, and hand-block printing in Malerkotla and Ludhiana nearly 10,000. The Punjabi jutti, made mainly in Patiala, Amritsar and Fazilka, employs about 15,000 workers. Paneer, dry fruits (Amritsar and Ludhiana hubs), papad-wadi and dairy mithai also move to 5%, with food prices falling about 6–7%. Ludhiana's bicycle industry, which employs over 40,000 people, also gains from the cut to 5%.
Key facts
- Rate
- 12% → 5% across textiles, crafts, footwear, metalware, dairy, agro, bicycles
- Phulkari
- GI-tagged embroidery; Amritsar & Patiala; ~20,000 artisans
- Woollens
- Ludhiana & Amritsar; ~25,000 workers
- Jutti
- Patiala, Amritsar, Fazilka; ~15,000 workers
- Bicycles
- Ludhiana; 40,000+ jobs
- Food
- ~6–7% drop in retail prices
Practice MCQs 2 questions
Phulkari, a GI-tagged craft of Punjab mentioned in the October 2025 PIB explainer on GST reforms, is a form of:
Show answer
Correct answer: B — Embroidery
PIB: Phulkari, a GI-tagged craft practised mainly in Amritsar and Patiala, involves traditional embroidered garments and employs around 20,000 artisans.
According to the October 2025 PIB explainer on GST reforms in Punjab, which city is integral to the state's bicycle manufacturing industry?
Show answer
Correct answer: D — Ludhiana
PIB: Ludhiana is integral to Punjab's bicycle manufacturing, with the industry employing over 40,000 people directly and indirectly.