By Mahesh Kudav
The Government’s recent announcement of Next-Gen GST reforms is not merely a taxation update—it is a decisive step toward building a stronger, more competitive, and more resilient Indian economy. For industries like Personal Protective Equipment (PPE), where accessibility, affordability, and innovation determine both worker safety and industrial productivity, this reform could be transformative.
Correcting the Inverted Duty Structure
For years, the PPE industry grappled with an inverted duty structure. Raw materials essential for PPE manufacturing attracted a higher GST slab of 12% to 18%, while many finished textile products were taxed at just 5%. This mismatch impacted pricing efficiency and diluted the benefits of lower taxation for end consumers. Despite PPE being a critical safeguard for millions of Indian workers, affordability often remained a challenge. With the correction aligning raw material GST to 5%, the landscape is set to change. This reform will rationalize costs, reduce the overall MRP of PPE products, and make quality safety equipment more accessible to India’s workforce.
Driving Accessibility and Adoption
India is one of the world’s fastest-growing industrial economies, employing millions in labour-intensive sectors. Yet, the adoption of PPE has historically faced challenges—cost being a key barrier. When products are priced beyond the reach of small contractors, daily wage workers, and even MSMEs, safety takes a backseat. The GST reform directly addresses this challenge. By lowering costs, it creates a scenario where workers gain affordable access to safety gear, employers benefit from enhanced productivity and reduced accidents, and the nation reaps the reward of a safer and healthier workforce. This accessibility will also encourage adoption in Tier II and Tier III cities where small businesses are rapidly growing but often lack the financial flexibility to prioritize safety.
A Wider Economic Multiplier
The impact of this GST rationalization extends far beyond PPE. The alignment of raw materials to 5% GST benefits industries including consumer goods, automobiles, medicines, and daily essentials. Lower input costs will trickle down to consumers, making everyday products more affordable and boosting disposable incomes. Crucially, the timing of this reform coincides with India’s festive season, traditionally a period of high consumption. By increasing purchasing power, the reforms will uplift consumer sentiment, drive demand, and create a multiplier effect across the economy. The ripple effect will be visible in retail, e-commerce, transport, and services—sectors that directly touch the lives of citizens.
Empowering MSMEs
As the backbone of India’s industrial fabric, Micro, Small, and Medium Enterprises (MSMEs) stand to gain immensely. MSMEs are often the most affected by inverted duty structures because their scale does not allow them to absorb higher raw material costs. With the new GST structure, MSMEs will experience improved cash flows, reduced taxation complexities, and stronger competitiveness, enabling them to scale operations and explore export opportunities. This aligns seamlessly with the Government’s larger vision of promoting ease of doing business and creating an environment where Indian enterprises can thrive globally.
Building Resilience and Preparedness
India’s economic journey in recent years has been defined by resilience, adaptability, and reform-driven growth. The pandemic tested our systems, but it also reinforced the importance of safety, health, and industrial continuity. The PPE sector, in particular, rose to the occasion. During COVID-19, Indian manufacturers, including Venus Safety & Health, expanded capacities and ensured domestic availability while also supplying globally. That experience underscored the critical link between policy, industry, and national preparedness. The recent GST reforms build on that foundation. They send a clear signal to both domestic and international stakeholders: India is serious about fostering competitiveness, worker well-being, and consumer welfare.
Unlocking the Next Decade of Growth
These reforms are not just about correcting duty structures—they are about unlocking opportunities. Over the next decade, we will witness increased innovation in product development, as affordability expands market size. Indian PPE manufacturers will strengthen their export potential, competing globally on both cost and quality. Expanding industries will create demand for skilled workers and entrepreneurs, empowering India’s youth to lead the next chapter of growth. Under the leadership of our Hon’ble Prime Minister Shri Narendra Modi, India’s reform momentum has been consistent. From taxation to digitalization, the push has always been toward making India a hub of ease of doing business. The GST reform is a continuation of this journey, one that instils confidence not only in Indian entrepreneurs but also in the global investor community.
Conclusion: Towards a Stronger India
The GST reforms are a milestone—removing inefficiencies, enhancing affordability, and energizing industries across the spectrum. For the PPE sector, they represent a chance to scale safety adoption across India’s vast workforce. For consumers, they bring tangible relief and renewed optimism. For MSMEs, they provide the tools to compete and grow. Most importantly, these reforms reinforce a larger truth: India’s economic buoyancy lies in the synergy between progressive policies, resilient industries, and an empowered workforce. As we embrace this new chapter, I believe India is poised not just to grow but to lead with resilience, safety, and global confidence.
(The above article is authored By Mahesh Kudav, Chairman & Managing Director, Venus Safety & Health Pvt. Ltd. Views are his personal)
Last Updated on: Tuesday, September 9, 2025 8:21 pm by Economic Edge Team | Published by: Economic Edge Team on Tuesday, September 9, 2025 8:11 pm | News Categories: Brand Post
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