New Delhi: Various industry associations and trade organizations from multiple sectors have expressed their approval of the Goods and Services Tax (GST) rate reductions announced by the government. In conversations with ANI, representatives from diverse sectors indicated that these reforms would enhance the competitiveness of the Indian industry and provide direct benefits to consumers.
Manish Singhal, Secretary General of ASSOCHAM, remarked that this decision would invigorate the economy. "Our economy will become more competitive and will serve as a significant boost. We will see an increase in production, a rise in industrial capacity utilization, and a surge in investment. As the economy grows more competitive, both exports and the domestic market will greatly benefit," he stated.
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), expressed his support for the reduction in GST on medical devices from 12 percent to 5 percent.
"We are very pleased with this government decision... which will ensure affordable access for consumers and patients, thereby reducing their healthcare expenses. More importantly, it alleviates concerns for manufacturers who were increasingly anxious about the inverted GST structure. The government has promised that we will receive GST refunds within 7 days. If this materializes, it will be outstanding as we can transfer the full benefit to consumers," he added.
Reflecting the shared view, Himanshu Baid, MD of Poly Medicure and CoA Member EPCMD, stated that the reductions would enhance consumption. "This is a significant decision aimed at boosting consumption in a country where GST rates have decreased for most essential items. For vital medical products like thermometers, glucometers, and diagnostic kits, the GST rate has been lowered to 5 percent. This is an excellent reform initiated by the government, which will promote local consumption and improve affordability and accessibility for many products that were previously unaffordable for the average person," Baid informed ANI.
Industry associations also associated this initiative with bolstering India's standing in international markets. Mukesh Jain, State President of the Rice Exporters Association in Chhattisgarh, remarked, "I would like to express my appreciation to PM Modi and FM Nirmala Sitharaman and welcome this GST reform decision. This action will not only fortify local markets but also give Indian industries a competitive advantage in light of the challenges posed by American tariffs."
From the textile industry, Ravi Sam, Vice Chairman of the Cotton Textiles Export Promotion Council (TEXPROCIL), commented, "Today has brought significant relief... The adjustment of reducing the three or four GST slabs to two means that 99 percent of the textile sector will now fall under the 5 percent rate. With the festival season approaching, I anticipate a surge in interest and a substantial increase in business, which will greatly benefit the industry at this time."
Chemical exporters also expressed their approval of the reduction. Satish Wagh, Chairman of the Basic Chemical, Cosmetic and Dyes Export Promotion Council, remarked, "This is a commendable action by the government as there was widespread anticipation for a GST reduction. This will undoubtedly assist the manufacturing sector in enhancing production, and the average citizen, who has been adversely affected by the high GST slab, will reap the benefits."
In addition to this, Ravi Patodia, a member of the Bhadohi Carpet Export Promotion Council, stated, "This will greatly alleviate the burden on the general public. The tax load will be lessened, and inflation will also decrease... This is a positive decision in light of the ongoing tariff crisis.."
