Fiji stands to gain immensely from India’s forthcoming GST 2.0 tax reform, scheduled to be launched on September 22. Indian High Commissioner to Fiji, Suneet Mehta, has conveyed that this reform will make Indian goods, particularly essential items, more affordable and accessible for Fiji. This is critically significant for the South Pacific nation, which relies heavily on Indian imports for medicines and medical equipment.
Earlier in the year, a memorandum of understanding (MOU) between India and Fiji acknowledged the Indian Pharmacopoeia, simplifying the acceptance of Indian medicines in Fiji. Additionally, during Prime Minister Sitiveni Rabuka’s visit to India in August 2025, another MOU was signed focusing on the Pradhan Mantri Jan Aushadhi scheme, aimed at supplying affordable generic medicines to Fijians.
The GST 2.0 reform is expected to reduce the costs of production and export, potentially making medical supplies even more affordable for Fijian healthcare facilities and patients. Beyond healthcare, the reform also slashes GST on agricultural equipment and inputs such as tractors, harvesters, fertilizers, and composters. This could pave the way for Fiji to engage in joint agricultural ventures or directly import cost-effective Indian machinery and materials.
Moreover, the reform is poised to lower costs for Indian textiles, apparel, coffee, tea, spices, and dried legumes, providing more competitive options to Fijian importers, retailers, and consumers. These developments are anticipated to expand trade opportunities, reduce costs, and strengthen partnerships between the two nations, enhancing both economic and diplomatic relations.
The anticipated benefits of GST 2.0 for Fiji resonate with ongoing efforts by both governments to fortify their ties. This includes establishing direct procurement channels for medicines, engaging in healthcare collaborations, and pursuing joint ventures for economic and infrastructure growth. As these initiatives unfold, they present a shared vision for enhanced access to essential goods and services, economic advancement, and robust bilateral relations. India’s GST 2.0 reform marks a significant milestone in its tax policy, promising tangible benefits for Fiji’s economy and healthcare system, and contributing to stronger international cooperation.