- Healthcare welcomes GST cut on medical devices to 5%, easing costs.
- Textile and chemical sectors see gains in business and exports.
- Trade bodies say reforms enhance India’s global competitiveness.
Sector-specific industry associations and trade organizations have expressed approval for the Goods and Services Tax (GST) rate reductions declared by the Indian government. In conversations with ANI, representatives from various sectors stated that the reforms would enhance the competitiveness of the Indian industry and directly benefit consumers.
Manish Singhal, Secretary General of ASSOCHAM, said, "Our economy will become more competitive and will be a huge boost. Our production will increase, the industrial capacity utilisation will increase, and investment will also increase. As the economy will become more competitive, exports and the domestic market will hugely benefit," he said.
From the healthcare sector, Rajiv Nath, MD of Hindustan Syringes & Medical Devices Ltd and Forum Coordinator at the Association of Indian Medical Device Industry (AIMED), appreciated the reduction of GST on medical devices from 12 percent to 5 percent. "We are very happy with this Govt decision which will provide affordable access to the consumers and to the patients and lower their healthcare cost. More importantly, for manufacturers who were getting extremely worried about inverted GST structure. The Government has assured that we will receive GST refunds within 7 days. If this happens, it will be excellent because we can pass on the full benefit to the consumers," he said.
Echoing the sentiment, MD Poly Medicure and CoA Member EPCMD, Himanshu Baid, said the cuts would drive consumption. "This is a very big decision for driving consumption in the country where GST rates have come down for most of the essential products. For essential medical products, such as thermometers, glucometers, and diagnostic kits, the GST rate has been reduced to 5 percent. It's a great reform done by the govt., which is going to drive local consumption and also improve affordability and accessibility for many products that were out of reach for common people," Baid told ANI.
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Trade associations also associated the action with enhancing India's standing in international markets. Mukesh Jain, State President of the Rice Exporters Association, Chhattisgarh, said, "I express my gratitude to PM Modi and FM Nirmala Sitharaman and welcome this decision of GST reform. This step will not only strengthen the local markets, but will also provide a competitive edge to Indian industries amidst the challenges of American tariffs."
From the textile sector, Ravi Sam, Vice Chairman of Cotton Textiles Export Promotion Council (TEXPROCIL), said, "This has been a big, big relief today... This relaxation of bringing down the three or four slabs into two slabs, most of the textile industry, 99 percent is in 5 percent. Now with the festival season coming up, I think there's going to be a lot of interest and a lot of increase in business, which will really help the industry now."
Chemical exporters also appreciated the reduction. Satish Wagh, Chairman of the Basic Chemical, Cosmetic and Dyes Export Promotion Council, noted, "This is a very good move by the government because everybody was expecting a reduction in the GST. This will definitely help the manufacturing sector to boost manufacturing, and the common man who was always affected because of the high slab of GST will get the benefit."