Dr Reddy’s Laboratories has expressed optimism about India’s upcoming GST reform, which aims to create a simplified and more rational tax framework for the pharmaceutical sector. Chairman Satish Reddy noted that the industry has long grappled with structural inefficiencies such as high GST rates and an inverted duty structure, which have hindered manufacturing cost-efficiency and hindered patients’ access to affordable medicines.

Reddy said he expects the reform to address these critical issues, improve medicine affordability, and enhance India’s competitiveness and innovation in the global pharmaceutical supply chain. He emphasised that a reformed GST system would not only benefit patients but also reinforce India’s role in global healthcare security.

Meanwhile, the Association of Indian Medical Device Industry (AiMeD) has urged that GST rates remain at 12 percent for most medical consumables and at five percent for high-value equipment. AiMeD warned that reducing the rate to five percent across the board would worsen inverted duties, increasing costs for domestic manufacturers while making imports disproportionately cheaper.