Industry Welcomes GST Rate Cuts, Will Boost Economy, Exports, Local Markets
Industry associations and trade bodies across sectors have welcomed the Goods and Services Tax (GST) rate cuts announced by the government. Speaking to ANI, representatives from different sectors said the reforms would make the Indian industry more competitive and benefit consumers directly.
Manish Singhal, Secretary General of ASSOCHAM, said the decision would energise the economy. “Our economy will become more competitive and will be a huge boost. Our production will increase, the industrial capacity utilisation will increase, 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), welcomed the cut in GST on medical devices from 12 per cent to 5 per cent.
“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 per cent. 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.
Trade bodies also linked the move to strengthening India’s position in global 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 per cent is in 5 per cent. 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 welcomed the cut. 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.”
Adding to this, Ravi Patodia, Member of the Bhadohi Carpet Export Promotion Council, said, “This will provide a lot of relief to the general public. The tax burden will be reduced and inflation will also be reduced… It is a good decision considering the current tariff crisis..” (ANI)
