Why in News?
• The Government’s next-gen GST rate rationalisation is strengthening Telangana’s sectoral growth momentum — especially in pharma, aerospace/defence, and GI-based handicrafts.
Key Sectoral Impacts in Telangana
1) Pharma & Healthcare
• GST reduced to Nil on 30+ cancer drugs
• GST lowered to 5% on all personal-use drugs & medicines
→ Result: affordable healthcare, better treatment access, lower out-of-pocket expenditure for families
2) Aerospace & Defence Manufacturing
• Telangana emerging as a domestic drone manufacturing hub
• GST cut to 5% on:
- unmanned aircraft
- tanks & armoured fighting vehicles
→ Result: cost competitiveness, higher demand across agriculture / mining / infra, R&D push in defence innovation
3) Toys, Handicrafts & GI Economies
• GST reduced to 5% on Telangana GI products:
- Nirmal Toys & Crafts
- Pembarthi Metal Craft
- Adilabad Dokra
- Warangal Durries
→ Result: export growth, better price discovery, rise in artisan incomes, rural non-farm employment boost
Broader Economic Significance
• Lower tax burden → reduced costs → higher sales → domestic competitiveness
• Supports MSMEs & high-value manufacturing in sunrise sectors
• Enhances state’s global integration in supply chains — pharma + drones + cultural exports