From Loom to Legacy: How Taj Mahotsav Empowers Artisans

“The rules of the country are changing so much,” says businesswoman Sameena Khan in response to the time the Indian GST council decided to raise the lowest tax slab back in 2022. As they were first trying to readjust themselves from the economic destruction brought around by Covid, the Indian government was looking at the goods and services tax (GST) for a way out. To do this, they were looking to raise the lowest tax slab from 5 to 8 percent, dragging artisans from the textile industry through the consequences. Now, there is further proposed GST hike from 12 to 28 percent on Kashmir shawls. With Indian artisans on the constant brink of losing their indigenous craft, festivals such as the Taj Mahostav serve as a cultural and economic lifeline, allowing artisans to reach a wider audience and sustain their livelihood. ​

A man working on a weaving machine in Pochampally, Telangana (Akhil Pawar)

Khan is the founder of mother-daughter enterprise, Taanga which is based in the UK. At any given time, they will work with between 50 and 100 craftswomen from around India. It focuses on giving women a livelihood as well as supporting education for children in the country, donating a percentage of every sale to the education of underprivileged children.

Their products vary from home decor (rugs, tapestry, bedding) to clothing and kid toys. Each item is handmade by the artisans. It can involve spinning wool, weaving, stitching and natural dyeing. Increasing the GST could decrease their profit margins and demand. “It is very unfair to tax something which is a such a labour oriented industry,” says Khan.

Colourful Handmade Goddess Kali Idols in Kolkata (Kolkatar Chobiwala)

The Taj Mahostav festival is a ten-day cultural extravaganza which happens in Agra, home of the Taj Mahal. It first started back in 1992 and has since made a name for itself for showcasing some of India's finest craftsmanship. Around four hundred artisans from all over India flock to the festival for an opportunity to display their work. From bamboo carvings to paper-mâché projects, handmade carpets and marble artwork, the festival highlights some of what could be long gone a few years from now.

Sourodip Ghosh is the co-founder at Karghewale, an organisation aimed to bring hand weavers across India together. He gives an insightful look into how an increase in GST doesn’t have to bear negative consequences for hand weavers.

Artisans flock to Agra during the festival hoping to increase their business and showcase their craft (Puneet Singh Rawat)

“If the artisan has a GST registration done, which means that the artisan is recognised as a business, there is no harm done.” This outlook only applies to those who are part of the formal sector in the economy. “Eighty percent, if not more, of artisans in India belong to the informal sector,” he says.

The reason why the majority of artisans remain in the informal sector is so that they don’t have to pay tax when they do business with customers. However, this also means that whilst they pay more for the primary resource, these artisans can’t claim the credit once they sell their item.

Before the GST regime, the handloom sector was not taxed. Therefore, these artisans have only experienced getting taxed since 2017 (which was when GST was first introduced ). Organisations, such as Karghewale, encourage their artisans to move from the informal sector to the formal. “This is the easier part to correct,” Ghosh says.

The textile artisans in India have been particularly hit with the increase in GST tax (Chattrapal Singh)

Whilst artisans may be able to even out their profit margins by claiming credit, the inevitable increase in price isn’t so forgiving when it comes to consumer demand. For a customer, GST is just an expense. Retailers should therefore keep the price the same according to the bargaining culture in India. “The haggling on the final price creates pressure on the value chain itself,” explains Ghosh.

“Consumers do not want to feel the pressure of the taxes. So, the retailers have to cut down on their margins. Like this, they create a downward pressure, forcing everyone in the value chain to cut down on their margins so that they don’t have to take the hit.”

While there are ways in which the increase in GST doesn’t have to bear harsh consequences, societal tendencies are rudimentary in determining just how far artisans can get punished for this.

In any case, many blame the government for ignoring the fact that the artisanal industry is vulnerable to such fiscal policy changes. “The honest truth is that unfortunately, the Indian government is not doing much for the artisans,” says Khan.

The Taj Mahostav aims to not only boost tourism in India but to simultaneously get it to ethically finance some of the country's most marginalised communities. It promotes cultural heritage through traditional performances and local food but most importantly, by helping to preserve artisanal craftsmanship.