The Role of GST in Promoting Sustainable Livelihoods in India: Evidence from Heritage Industries and Cultural Sustainability

Cultural and heritage industries play a significant role in preserving traditional knowledge systems while contributing to employment generation and inclusive economic development in India. Among these industries, the handicraft sector represents a vital component of the cultural economy, employing more than 7 million artisans and producing over 35,000 varieties of traditional products across approximately 744 clusters nationwide (EPCH, 2025). In recent years, policy initiatives such as the Goods and Services Tax (GST) have introduced concessional tax rates for several handicraft and cultural goods, aiming to reduce the tax burden on artisans and improve the competitiveness of traditional products in both domestic and international markets. The present study examines the role of GST policies in supporting cultural goods and services, sustainable finance and livelihoods in the Indian context. The research adopts a qualitative and descriptive research design based on secondary data obtained from government reports, GST notifications, academic literature, and publications from institutions such as the Ministry of Textiles, Export Promotion Council for Handicrafts (EPCH), UNESCO, and the United Nations Conference on Trade and Development (UNCTAD). The findings indicate that supportive taxation policies and institutional initiatives have contributed to the expansion of handicraft exports, which have exceeded ?31,000 crore in recent years, while the global market value of Indian handicrafts is estimated at approximately US$ 4.56 billion. The concessions in GST 2.O and policy reforms can strengthen cultural industries, promote rural employment and support the broader objectives of sustainable finance and cultural preservation in India.