Hotline: 1800 102 2007
X
Search Business Opportunities
Planning 2015-02-23

Budget 2015: Govt set to announce incentives for medical devices sector

After relaxing FDI policy for medical devices sector, the government is expected to announce an incentive package for medical devices sector, including tax benefits in the forthcoming Budget 2015-16 for domestic manufacturers.

Budget 2015: Govt set to announce incentives for medical devices sector

In its pre-budget proposals, the Ministry of Commerce and Industry has suggested Union Finance Minister Arun Jaitley to increase import duty on medical devices product, including syringes and pacemaker.

It has recommended that the basic customs duty be hiked from 5 per cent to 10 per cent in the Budget 2015, to be presented on 28 February, said a source.

Currently, there is an issue of inverted duty structure on medical devices, which means customs duty on the final product is less than the duty on some raw materials essential for domestic manufacturing of syringes.

It is estimated that import of syringes has increased to $38.7 million in 2013-14 from $30.7 million in 2006-07. While, the domestic demand for the products is about 3 billion pieces.

Moreover, the ministry has also suggested that the countervailing duty on the imported raw material should be exempted on use basis for pacemakers.

According to sources, the Ministry wants that the existing concessional duty of 5 per cent on the imported raw material should be continued.

An industry expert said that there is a huge potential in this sector as the domestic demand of pacemakers is about 50,000 pieces. Its imports have increased to $22.86 million in 2013-14 from $14.22 million in 2006-07.

The government in last December permitted 100 per cent foreign direct investment (FDI) under automatic route in medical devices sector to encourage the manufacturing of equipment, including diagnostic kits and other devices.

India has achieved an eminent global position in Pharma sector. However, the same has not been replicated in the Medical Devices industry.

Comment
Related opportunities
  • Adventurous Sporting
    About Us : The Sports Gurukul (TSG) is Mumbai’s first of..
    Locations looking for expansion Maharashtra
    Establishment year 2002
    Franchising Launch Date 2018
    Investment size Rs. 10lac - 20lac
    Space required 250
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater Mumbai Maharashtra
  • Ayurvedic, Herbal & Organic Products
    About Company:Bio Veda Action Research company formerly known as Biotique..
    Locations looking for expansion New Delhi
    Establishment year 1992
    Franchising Launch Date 2015
    Investment size Rs. 10lac - 20lac
    Space required 200 – 500 sq. ft.
    Franchise Outlets -NA-
    Franchise Type Unit
    Headquater New Delhi New Delhi
  • About Us: Join hands with Iris Florets - the happy play..
    Locations looking for expansion Telangana
    Establishment year 2014
    Franchising Launch Date 2015
    Investment size Rs. 5lac - 10lac
    Space required 2000
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Hyderabad Telangana
  • Casual dine Restaurants
    About Us: Our Restaurant Chain Serves Fresh Pizza, Pasta, Soups and..
    Locations looking for expansion Maharashtra
    Establishment year 2017
    Franchising Launch Date 2018
    Investment size Rs. 30lac - 50lac
    Space required 500
    Franchise Outlets -NA-
    Franchise Type Unit, Multiunit
    Headquater Pune Maharashtra
Insta-Subscribe to
The Franchising World
Magazine
For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you
OR Click here to Subscribe Online
Daily Updates
Submit your email address to receive the latest updates on news & host of opportunities
More Stories

Free Advice - Ask Our Experts