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Post GST, pharmaceutical industry grew 6% till May this year: Mansukh Mandaviya
Nov-16-2018

Minister of State for Chemicals and Fertilisers Mansukh Mandaviya has said that after the Goods and Services Tax (GST) implementation, the pharmaceutical sector grew 6% to Rs 1,31,312 crore on a year-on-year basis till May 31 current year.   Mandaviya further highlighted that impact of the GST on the sector has largely been positive and constructive. He also said that before GST, annual turnover of the pharma sector as on May 31, 2017 was Rs 1,14,231 crore. There has also been a significant jump in the number of drug approvals after GST.

He has pointed out that Pharmaceutical companies can now consolidate their warehouses at strategic locations, effecting a reduction in the cost of distribution. Accordingly, it will benefit warehouse strategy and improve supply chain efficiency in the sector. 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.

Besides, he stated that it is expected that GST will 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.

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