Post GST, pharma sector grew 6 percent till May-end: Mansukh Mandaviya

After the implementation of GST, the pharmaceutical sector grew 6 per cent to Rs 1,31,312 crore on a year-on-year basis till May 31, Minister of State for Chemicals and Fertilisers Mansukh Mandaviya said Thursday.

Impact of the Goods and Services Tax (GST) on the sector has largely been positive and constructive, he added.

“Before GST, annual turnover of the pharma sector (as on May 31, 2017) was Rs 1,14,231 crore,” Mandaviya said in a statement.

Elaborating on the reasons for the growth, he said that under the ‘One Nation, One Tax’ regime, the removal of complexity of multiple taxes has reduced their cascading effect on the final product.

“GST is expected to decrease the manufacturing cost in view of merging of different taxes levied earlier and promote ease of doing business. It will create one single market for all stakeholders with equal chance towards development,” Mandaviya said.

Pharmaceutical companies can now consolidate their warehouses at strategic locations, effecting a reduction in the cost of distribution. As a result, it will benefit warehouse strategy and improve supply chain efficiency in the sector, he added.

There has also been a significant jump in the number of drug approvals after GST, Mandaviya said.

  • Related Posts

    • Pharma
    • December 23, 2024
    • 19 views
    NPPA sets retail prices for 65 drugs, revises ceiling for 20 formulations

    The National Pharmaceutical Pricing Authority (NPPA) has fixed retail prices for 65 new drug formulations and notified ceiling price fixation of 13 formulations. The regulatory body, under the Department of…

    • Pharma
    • December 23, 2024
    • 30 views
    India-Latin America trade and collaboration prospects discussed at Kerala University conference

    A panel discussion on ‘India-Latin America Business Prospects’ was held at the University of Kerala on Friday as part of the Centre for Latin American Studies (CLAS) international conference on…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    NPPA sets retail prices for 65 drugs, revises ceiling for 20 formulations

    NPPA sets retail prices for 65 drugs, revises ceiling for 20 formulations

    India-Latin America trade and collaboration prospects discussed at Kerala University conference

    India-Latin America trade and collaboration prospects discussed at Kerala University conference

    Karnataka Govt Files Criminal Cases Against Pharma Firm In Ballari Maternal Deaths Case

    Karnataka Govt Files Criminal Cases Against Pharma Firm In Ballari Maternal Deaths Case

    NPPA Notifies Ceiling Price Of 13 Formulations, Retail Price Of 65 New Drugs

    NPPA Notifies Ceiling Price Of 13 Formulations, Retail Price Of 65 New Drugs

    Over 14,000 PMBJK Centres Set Up To Provide Generic Medicines: Govt

    Over 14,000 PMBJK Centres Set Up To Provide Generic Medicines: Govt

    Telangana DCA Cracks Down On Illegal Drug Practices

    Telangana DCA Cracks Down On Illegal Drug Practices