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A Beacon of Hope: Healthcare Industry Applauds Potential GST Reduction on Life-Saving Drugs and Medical Devices

  • Nishadil
  • September 05, 2025
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  • 2 minutes read
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A Beacon of Hope: Healthcare Industry Applauds Potential GST Reduction on Life-Saving Drugs and Medical Devices

In a move poised to bring significant relief to millions of patients and their families across India, the healthcare industry has enthusiastically welcomed the Union Government's consideration of reducing Goods and Services Tax (GST) rates on critical drugs, medical devices, and food for Special Medical Purposes (FSMP).

This potential reduction, anticipated to lower rates from 12% or 18% to a more accessible 5%, is being hailed as a game-changer for healthcare affordability and accessibility.

The current GST structure has long been a point of contention for patients grappling with chronic illnesses, rare diseases, and life-threatening conditions like cancer, where the cost of treatment can be astronomical.

A reduction in GST directly translates to lower out-of-pocket expenses, making essential medicines and devices more attainable for those who need them most.

Industry leaders are united in their applause for this forward-thinking initiative. Dr. Ashutosh Raghuvanshi, President of NATHEALTH, emphasized that this move would significantly ease the financial burden on patients and their families, aligning perfectly with the government's broader vision of providing affordable healthcare for all.

The sentiment is echoed by Saket Tiku, President of the PHD Chamber of Commerce and Industry, who underscored that the reduction would foster a more inclusive healthcare ecosystem where essential treatments are not beyond reach due to prohibitive costs.

Specifically, the proposed GST cut on cancer drugs, medicines for rare diseases, and FSMP is particularly impactful.

These categories often involve prolonged, expensive treatments, and any reduction in cost offers a substantial respite. Patients battling these challenging conditions often face not only the physical and emotional toll of their illness but also immense financial strain. This policy intervention directly addresses a critical aspect of their struggle.

Furthermore, the reduction on medical devices will have a cascading positive effect, potentially lowering the cost of diagnostic equipment, surgical implants, and assistive devices.

This can improve the quality of care and make advanced medical technologies more accessible to a wider population. Dr. Sanjeev Singh, Medical Director at Amrita Hospital, Faridabad, highlighted how this move would benefit patients requiring complex medical interventions.

The healthcare sector views this as a crucial step towards strengthening the healthcare infrastructure and ensuring that financial constraints do not compromise access to life-saving treatments.

As Arun Kumar Singh, Director of the Healthcare Federation of India (FICCI), noted, it's a testament to the government's commitment to prioritizing public health and well-being. This proactive measure not only offers immediate financial relief but also sets a precedent for future policies aimed at making healthcare more equitable and sustainable in India.

In essence, this potential GST reduction represents more than just a tax cut; it symbolizes a renewed hope for patients and a significant stride towards achieving universal healthcare accessibility in the nation.

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