GST Bill Likely to Help Healthcare Manufacturing in India: Raja Venkatraman

By Manu Sharma

If the government of India passes the GST Bill, it would lower tax on production by about 600 basis points from the present about 23 percent, said Raja Venkatraman, Vice Chairman and Managing Director of Philips India Limited.

Addressing the media on the occasion of the Philips India Innovation Experience 2016 in Bengaluru, Venkatraman said, "software industry is a $160 billion industry and this is mainly due to the government incentives that created a good eco system for the software and the allied industries. However, the scene in the healthcare is very different. In fact, no incentives have been provided for the healthcare industry so far." 

If the government wants to see ‘Make in India’ take off, then they needs to provide incentives to promote manufacturing of healthcare products in the country, and not raise customs and import duty, he said.

“By raising duties, one cannot force companies to manufacture in the country. The costs need to come down and need to get the right technology at the cost patients can afford. Infact, it costs more to manufacture in India. That is a huge challenge and increasing duty would not address the problem at all, adds Venkatraman.

“By raising duties, one cannot force companies to manufacture in the country. The costs need to come down and better technology is needed. We need to get the right technology at costs the patient can afford. Infact, it costs more to manufacture in India. That is a huge challenge and increasing duty would not address the problem,“ adds Venkatraman.

While the Pune-based Heathcare Innovation Campus of Philips makes interventional and diagnostic X-ray systems the Philips Innovation Campus in Bengaluru designs software that are put in various products manufactured by the company in the world.