Union Budget 2026: Lucknow’s Chikankari traders seek GST cut and export support

As traders look for relief from tax pressures, growing duplication, and the impact of higher US tariffs on exports, Lucknow's well-known Chikankari industry is holding out hope for the upcoming Union Budget.

According to artisans and traders associated with the traditional hand-embroidery craft, a reduction in the Goods and Services Tax (GST), along with stronger government-backed promotional support, is crucial to sustain the industry. They argue that lower taxes would help make authentic Chikankari more competitive against cheaper imitations flooding the market.

Chikankari clothing is still in high demand in global markets, especially in the US and Gulf nations. However, traders note that tariffs imposed by the US under former President Donald Trump have made exports costlier, affecting overall sales and profitability.

Industry stakeholders think that timely policy interventions could help offset current challenges, given the growing global interest in sustainable and handcrafted fashion. They stress that supportive measures in the Union Budget would not only boost exports but also protect the livelihoods of thousands of artisans linked to the heritage craft.

In order to sustain its growth in India and other international markets, the centuries-old Chikankari tradition, which has changed without losing its cultural core, now looks to favourable government policies.