New Delhi: The recent GST rate rationalisation is set to boost Bihar’s economy, rooted in agriculture, handlooms, handicrafts and food processing — easing the burden on consumers, supporting rural livelihoods, strengthening MSMEs and enhancing competitiveness in exports, an official statement said on Saturday, as reported by IA. 

From makhana farmers in Mithila to silk weavers in Bhagalpur, dairy producers linked with Sudha, and engineers at Madhepura’s rail factory, the GST reforms are expected to reach across the state’s traditional and modern sectors alike. The impact will be visible across agriculture, handlooms, handicrafts, dairy, fertilisers, rail manufacturing, bamboo and cane crafts, and emerging areas such as AYUSH and honey.

The reforms will boost agriculture with Makhana, Shahi Litchi and processed foods gaining from GST cuts, benefitting lakhs of farmers and MSMEs. It will also bring relief to Sudha’s 9.6 lakh farmers, supported through GST-free milk and paneer and lower rates on ghee, butter and ice-cream.

Handlooms and crafts like Bhagalpuri silk, Madhubani art, Sujini and Patharkatti stone carving will become more competitive, and farmers will benefit from cheaper fertilisers, micronutrients and machinery with 7-13 per cent expected cost savings.

In an industry push with rail hubs, AYUSH products and honey clusters will see 6-13 per cent relief in costs in the state. Bihar produces 80-90 per cent of India’s makhana, sustaining about 10 lakh families engaged in cultivation and processing. The crop is concentrated in northern Bihar’s Mithilanchal region, grown in pond networks across Darbhanga, Madhubani, Purnea, Katihar, Saharsa and adjoining districts.

With GST on makhana-based snacks reduced from 12 per cent to 5 per cent, processors and exporters are expected to gain from an effective cost reduction of about 6-7 per cent, making the product more competitive in both domestic and overseas markets. Muzaffarpur’s GI-tagged Shahi Litchi, also grown in Vaishali, Champaran, Sitamarhi and Samastipur, sustains thousands of small farmers and seasonal workers.

Bihar accounts for nearly 35 per cent of India’s litchi output. With GST on juices, jams and pickles reduced from 12 per cent to 5 per cent, there is an expected cost saving of 6-7 per cent, encouraging more local processing and supporting access to niche markets in the Gulf.

Bihar’s MSME clusters in Patna, Hajipur and Bhagalpur handle a wide variety of processed foods, with micro-units and women-led SHGs engaged in snacks, pickles, bakery and sauces. Brands like Sudha cater to Bihar and East India, while makhana-based products are reaching pan-India markets.

Bhagalpur industrial estate alone hosts over 40 food and agro units, with new food park and bottling projects adding jobs. With GST on biscuits cut from 18 per cent to 5 per cent and on namkeens and sauces from 12 per cent to 5 per cent, prices are expected to fall by 6-11 per cent, supporting demand and strengthening MSME margins.

A backbone of Bihar’s rural economy, the dairy sector sustains about 9.6 lakh mostly marginal farmers through COMFED (Sudha), with strong participation of women in collection and SHGs. Processing, chilling, transport and retail provide thousands of jobs across the state, anchored in hubs like Patna and Barauni. With UHT milk and paneer now GST-free, ghee and butter cut from 12 per cent to 5 per cent, and ice-cream from 18 per cent to 5 per cent, products are expected to be 5-13 per cent cheaper.

These cuts will ease working capital pressures on dairies, strengthen cooperative networks, and improve affordability for households across Bihar and East India, according to the official statement.

Rachel Reeves has pushed for an “ambitious” youth migration deal with the EU in a bid to improve the outlook of the public finances ahead of the autumn Budget.

The chancellor told the Times an exchange scheme for young workers would be “good for the economy, good for growth and good for business”.

The UK agreed to work towards a “youth experience visa” with the EU in May this year but the specifics of the scheme are still being negotiated.

Reeves also called for the Office of Budget Responsibility (OBR) to factor the potential economic impact of such a scheme into its forecasts ahead of the Budget, which she hopes will reduce the need for spending cuts or tax rises.

The proposal has previously been criticised by the Conservatives and Reform UK, who have said it amounts to a partial return to freedom of movement, which ended when the UK left the EU.

Such a scheme could mean those aged 18-30 could stay for two or three years, but the details are to be negotiated.

In an interview with the Times ahead of the Labour Party’s conference in Liverpool this week, the chancellor declined to specify how many visas could be issued annually under the scheme.

The UK already has similar schemes with 11 countries including Australia, New Zealand and Japan, with people able to stay for up to three years depending on where they apply from.

Under those agreements, the UK issued just over 24,000 youth mobility visas in 2024.

The OBR has previously scored UK growth down by 4% due to the original Brexit deal.

The chancellor believes that has set a precedent and that the OBR should include the projected economic upsides of a youth mobility scheme into its upcoming forecast.

Referencing the agreement between London and Brussels earlier this year, Reeves told the Times: “As a result of that reset in May, we think the economy will be stronger. We also want the OBR to score that.”

The OBR will send its first economic forecast to the treasury on Friday, which will include the gap the chancellor will need to make up in her 26 November Budget.

Much is depending on the OBR’s expected downgrade to the underlying long-term performance of the economy, or productivity. The gap could be £20 or £30 billion per year.

In response, the chancellor has stressed a series of measures aimed to help the economy grow faster, including further trade deals.

If accepted by the independent forecasters, the inclusion of the proposed EU youth mobility scheme into its calculations could theoretically limit the extent of any new tax rises.

The OBR has scored policy moves on house building and childcare as helpful to the economy in recent years.

Speculation has been rife that the chancellor will be forced to raise taxes or cut spending in order to fill the fiscal hole, despite Labour’s election promise not to increase income tax, National Insurance or VAT for working people.

New Delhi: The recently approved Integrated State and City Logistics Plan will help achieve India’s sustainability goals through the adoption of low- and zero-emission vehicles and the establishment of low-emission freight zones, reports have said. 

The government launched the plan in collaboration with the Asian Development Bank (ADB) in eight cities across eight states, which will focus on evaluating existing logistics infrastructure, identifying bottlenecks, and preparing a roadmap for improvement.

The Centre has chosen Ludhiana, Shimla, Jaipur, Indore, Patna, Visakhapatnam, Bhubaneswar and Guwahati to develop integrated state and city logistics plans as part of a programme led by the Department for Promotion of Industry and Internal Trade (DPIIT), according to reports.

The logistics planners will prioritise freight demands from local retailers and e-commerce players, focusing on truck terminals, urban roads, and efficient last-mile delivery systems.

According to officials, these plans will later be replicated across the country to ensure seamless goods movement and stronger supply chain resilience.

The Asian Development Bank is offering technical support to align state-level logistics strategies with city freight networks and broader mobility goals.

Officials said that the dual focus on connecting growth hubs to major trunk routes at the state level and upgrading urban freight systems at the city level will enhance supply chain efficiency.

Sustainability measures being considered include the adoption of low- and zero-emission vehicles for last-mile delivery and implementation of noise-reduction measures.

DPIIT highlighted the importance of automation and data-driven decision-making in improving operational efficiency, cutting costs, and ensuring transparency in freight movement.

The planning for the project will take 6 to 8 months, a DPIIT official had informed, adding that if the plans are approved, the government may seek other support from the ADB for implementation.