Fiji is poised to benefit greatly from India’s upcoming GST 2.0 tax reform, set to launch on September 22. The Indian High Commissioner to Fiji, Suneet Mehta, has indicated that the reform will significantly impact Fiji by making essential Indian goods more affordable and accessible. This change is particularly crucial for Fiji, as the country imports a substantial amount of its medicines and medical equipment from India.
Earlier this year, India and Fiji signed a memorandum of understanding (MOU) recognizing the Indian Pharmacopoeia, which simplifies the acceptance of Indian medicines in Fiji. Additionally, during Prime Minister Sitiveni Rabuka’s visit to India in August 2025, another MOU was signed under the Pradhan Mantri Jan Aushadhi scheme, aimed at providing affordable generic medicines to the Fijian population.
With GST 2.0 expected to reduce production and export costs, these agreements are likely to result in even more affordable medical supplies for Fijian patients and healthcare facilities. The benefits of GST 2.0 are not limited to healthcare; the reform also reduces GST on agricultural equipment and inputs such as tractors, harvesters, fertilizers, and composters. This opens opportunities for Fiji to engage in joint ventures in agriculture or import cost-effective Indian machinery and materials directly.
Furthermore, the reform is expected to lower costs for Indian textiles, apparel, coffee, tea, spices, and dried legumes, offering more competitive options to Fijian importers, retailers, and consumers. Overall, these developments are poised to deepen trade opportunities, reduce costs, and forge stronger cooperation between India and Fiji, enhancing the economic and diplomatic relationship between the two nations.
The anticipated positive outcomes of GST 2.0 for Fiji align with previous efforts by both governments to strengthen ties. This includes the establishment of direct procurement channels for medicines, collaborations in healthcare, and joint ventures aimed at advancing Fiji’s economic and infrastructure goals. As these initiatives unfold, they highlight a shared vision for improved access to essential goods and services, economic growth, and strengthened bilateral relations. The reform not only marks a significant milestone in India’s tax policy but also promises to deliver tangible benefits to Fiji’s economy and healthcare system.