GST cut on drugs, medical devices will provide relief to patients and their families, says healthcare industry

admin — Thu, 04 Sep 2025 16:21:00 +0000

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The healthcare industry has welcomed the government’s move to reduce GST on medicines and medical devices, calling it a progressive reform that will directly benefit patients by lowering treatment costs, improving affordability, and expanding access to essential medical technologies.

While healthcare services provided by doctors, hospitals, and diagnostic centres were already exempt under the GST regime, the government has announced a series of GST rationalisation measures to promote a health-positive tax regime, the Health Ministry said in a statement on Thursday (September 4, 2025).

“These reforms aim to lower the cost of medicines and medical devices, encourage preventive healthcare, and boost insurance coverage. The reforms strongly align with national initiatives such as Ayushman Bharat, Poshan Abhiyaan, and the Fit India Movement, while supporting the vision of ‘Affordable Healthcare for All’,” it added.

Welcoming the GST exemption on lifesaving and cancer medicines, the Indian Pharmaceutical Alliance said the move would bring direct relief to patients and their families. “The reduction in GST on a wide range of medicines from 12% to 5% will help ease the overall treatment burden and make essential therapies more affordable. These reforms will improve the accessibility of medicines and ensure wider availability across healthcare settings,’’ Sudarshan Jain, secretary general of the alliance, said.

Sanjiv Navangul, CEO, Bharat Serums and Vaccines, said the decision to eliminate GST on advanced therapies, particularly biologics for oncology and rare diseases, would immediately widen access and availability of advanced care into mainstream treatment pathways. “Such reforms reinforce India’s broader ambition of building a strong, self-reliant life sciences ecosystem that can deliver cutting-edge therapies at scale and at prices patients can afford,” he said.

The industry also welcomed the zero GST on individual health and life insurance policies, calling it a masterstroke. Shobana Kamineni, executive chairperson, Apollo Healthco, said the move made health protection a right, not a privilege. “Reductions on medicines and supplies bring affordable care to every household,’’ she said.

Anand Roy, CEO and managing director, Star Health and Allied Insurance, noted that the “reform will reshape the insurance landscape, accelerating penetration, driving higher renewal rates, building deeper customer loyalty and a critical catalyst for future growth”.

“This progressive reform will directly benefit patients by lowering treatment costs, improving affordability, and expanding access to essential medical technologies,’’ said Himanshu Baid, managing director, Poly Medicure Ltd., said.

Published – September 04, 2025 09:51 pm IST

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Medical Device Industry Opposes Import Of Refurbished Medical Devices

admin — Tue, 29 Oct 2024 08:10:45 +0000

Medical device industry associations sought PM Modi’s intervention in the matter.

Medical device industry associations on Friday attacked the Ministry of Environment, Forest, and Climate Change for allowing the import of refurbished and pre-owned medical devices into the country saying it is against the interests of the companies investing in local manufacturing.

The PHD Chamber of Commerce and Industry (PHDCCI) and the Association of Indian Medical Devices (AiMed), in alliance with the Manufacturers of Imaging, Therapy and Radiology Devices Association (MITRA), the Association of Diagnostic Manufacturers of India (ADMI), and other key stakeholders from the MedTech industry sought Prime Minister Narendra Modi’s intervention in the matter.

“The Office Memorandum (OM) issued by the MoEFCC undermines the National Medical Devices Policy 2023, which was launched by the Prime Minister last year. The OM allows the import of pre-owned medical equipment into India, putting the investments made by Indian and overseas manufacturers under the ‘Make in India’ initiative at risk of becoming non-performing assets,” AiMeD Forum Coordinator Rajiv Nath stated.

The investors will only bring manufacturing technologies to India if the policy environment is predictable and consistent with the National Medical Devices Policy 2023, intended to be binding on all government departments, he added.

“Not only are many projects recently initiated for high-end medical equipment now jeopardised, but patient safety is also at risk,” Nath said.

India is being treated as a dumping ground for e-waste, with obsolete equipment being resold in the country while overseas manufacturers benefit from doubling their sales – once through replacement sales to hospitals in the Western world and again through second sales of pre-owned equipment to India, he stated.

“This severely harms the domestic industry, which is still in its nascent stage. India must not become a dumping ground for obsolete medical equipment,” Nath said.

Innvolution Healthcare Co-Founder Atul Sharma said India’s self-reliant healthcare vision relies on fostering local innovation.

“We urge the government to prioritise domestic manufacturers and consult CDSCO’s data to prevent unnecessary imports that hinder industry growth,” he added.

Echoing similar sentiments, Sequoia Healthcare CEO & MD Viswanathan Santhanagopalan said hospitals and diagnostic centres charge patients the same fees, regardless of whether they use new or refurbished equipment, meaning no cost benefit is passed on to patients while outdated technology is employed.

PHD Chamber of Commerce and Industry Assistant Secretary General Shalini Sharma said the import of refurbished medical devices poses challenges for domestic manufacturers, many of who are members of the chamber.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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GST cut on drugs, medical devices will provide relief to patients and their families, says healthcare industry

Medical Device Industry Opposes Import Of Refurbished Medical Devices