Visakhapatnam, November 3:
The GST Bachat Utsav, which began on September 22, has started reshaping Andhra Pradesh’s economic landscape. With the Narendra Modi government announcing sweeping reductions in Goods and Services Tax (GST) across multiple industries, coastal and manufacturing sectors in the state are witnessing renewed growth and optimism.
The next-generation GST reforms have been particularly beneficial for the coastal economy. Under the revised structure, the GST rate on fish oils, extracts, preserved seafood products, fishing gear, and diesel engines has been reduced to 5 percent. This has provided significant relief to small processors and fisherfolk who form the backbone of Andhra Pradesh’s maritime economy.
Industry observers note that these cuts are expected to enhance competitiveness in export-oriented seafood processing units located across Visakhapatnam, Kakinada, and Nellore. Lower input costs are helping local industries modernize operations, improve profitability, and expand employment opportunities in allied sectors such as logistics and packaging.
In addition to the fishing sector, GST 2.0 has also recognized Andhra Pradesh’s unique cultural and artisanal identity. Niche products such as Araku Coffee, Leather Puppetry, and Stone Carvings now attract only 5 percent GST, down from the previous 12 percent. These reductions are expected to strengthen rural livelihoods, encourage artisan entrepreneurship, and promote exports from heritage clusters in Chittoor, Anantapur, and the Eastern Ghats region.
Government officials describe the reforms as a “strategic economic equalizer” — designed to balance growth between industrial hubs and rural craft-based economies. The reforms are also stimulating the automobile segment in the state. The GST rate on three-wheelers, small cars, and motorcycles with engine capacities up to 350cc has been reduced to 18 percent.
This move has made vehicles more affordable for consumers and improved market sentiment for dealerships and component manufacturers in districts such as Sri City, Tirupati, and Vijayawada. The auto sector, which had seen a demand slowdown in the previous quarters, is witnessing an uptick in orders post-reform.
Economists believe that Andhra Pradesh stands to benefit significantly from these changes, given its strong base in manufacturing, fisheries, and export logistics. The reduction in GST has lowered operational costs for small and medium enterprises (SMEs), enabling them to compete more effectively both domestically and globally.
Overall, the new GST structure is expected to spur long-term growth in Andhra Pradesh’s coastal and manufacturing ecosystem. By easing tax burdens, stimulating consumption, and supporting indigenous crafts and industries, the GST Bachat Utsav has set the stage for a more inclusive and resilient state economy.