Medical devices reduce drugs that provide relief to patients and their families, the healthcare industry says

The healthcare industry welcomes the government's move to reduce GST for pharmaceuticals and medical devices, calling it a progressive reform that directly benefits patients by reducing treatment costs, improving affordability and expanding access to essential medical technologies.

Although health services provided by doctors, hospitals and diagnostic centres have already been exempt under the GST system, the government has announced a series of GST rationalization measures to promote the health positive tax system, the Ministry of Health said in a statement on Thursday (4th September 2025).

“These reforms aim to reduce the costs of pharmaceuticals and medical devices, promote preventive healthcare, and promote insurance coverage. The reforms are strongly in line with national initiatives such as the Ayushman Bharat, Poshan Abhiyaan and the Fit India movement, supporting the vision of “all affordable healthcare.”

India's Drug Alliance welcomed the GST exemption for life-saving and cancer drugs, saying the move would provide direct relief for patients and their families. “A reduction in GST for a wide range of drugs from 12% to 5% will help ease the overall treatment burden and make essential treatments more affordable. These reforms will improve accessibility of medicines and ensure wide availability across the healthcare environment,” said Sudarshan Jain, Executive Director of the Alliance.

Sanjiv Navangul, CEO of Bharat Serum and Vaccines, said the decision to eliminate GST in advanced therapies, particularly oncology and rare disease biology, would soon expand the access and availability of advanced care to mainstream treatment routes. “Reforms like this will strengthen India's broader ambitions to create a strong, independent life science ecosystem that can provide cutting-edge therapies at scale and at a price,” he said.

The industry also welcomes zero GST on individual health and life insurance, calling it a master stroke. Shobana Kamineni, executive chairman of Apollo Healthco, said the move has made health protection a right and not a privilege. “Reducing medicines and supply brings affordable care to all households,” she said.

“Reforms will reshape the insurance landscape, accelerate penetration, increase renewal rates and build a critical catalyst for customer loyalty and future growth,” said Anand Roy, CEO and Managing Director of Star Health and Allied Insurance.

“This progressive reform will directly benefit patients by reducing treatment costs, improving affordability and increasing access to critical medical technologies,” said Himanshu Baid, managing director of Poly Medicure Ltd.