Medical Devices Demand To Surge If GST Rate Slashed, Says Poly Medicure MD

India’s MedTech sector is expanding rapidly and with the proposed next-generation Goods and Services Tax (GST) reforms, a strong growth opportunity is emerging for leading players in the industry. The expected GST rate cuts will help boost demand and drive volume growth, according to Himanshu Baid, Managing Director, Poly Medicure.  

Speaking to NDTV Profit, Baid said current GST rates are 5% for life-saving items, 12% for consumables, and 18% for equipment. He expects the 12% slab may fall to 5%, which will help reduce hospital costs and lead to more demand.

“So, more or less, it (GST cut) will be a pass-through. But actually, it will also increase demand because the products will get cheaper by 6% to 7%. And that is a big number, when you look at it in terms of affordability, accessibility. I think that will also increase demand to a certain extent for locally made devices,” Baid said.

He expects domestic product volumes to rise as the healthcare sector grows 12–15% yearly, with new hospitals and stronger demand for locally made devices. Poly Medicure is a leading global player in the medical devices industry.

“I think, as we've been seeing in the last 4-5 years, the traction is more for domestically made products. And if GST kind of decreases to a certain extent, I think the demand should increase for locally made products,” Baid noted.

He explained that the Indian MedTech market is worth around $15 billion. Of this, $8 billion comes from imports. The government's ongoing support for the sector has helped in reducing import dependence, he added.

“The push has come post-Covid….government has made an effort to bring regulation, PLI schemes and various incentives to make industry more local and reduce import dependence," he said.

On the tariffs front, Baid said that an estimated $700 million worth of medical devices were exported from India to the United States. "I think that it will be under a little bit of pressure in the coming months.”

Poly Medicure is also focussed on markets like Europe, Asia, and Latin America as part of its growth strategy. On the impact of US tariffs, he noted that the company is not particularly affected due to limited exposure.

“So, our exposure to the US right now is less than 3-4% of our total exports. But as we speak, we are building a lot of new product lines for the US market (expected for the FY27 calendar). So, that is where we see a little bit of pushback. But of course, India is at a disadvantage compared to neighbouring countries like China and Vietnam, where the tariffs are much lower compared to India. But yes, Polymed is already trying to diversify its export basket,” he noted.