Wellness Franchise Opportunities

PlanningFeb, 23 2015

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.

By WI Bureau

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.

Related: By 2015, 85% of cigarette pack to be covered by health warning: Harsh Vardhan

Click Here to add Comment
Please add your Comment
Rating
Sell Business 2017
Sell Franchise 2017

Newsletter Signup

Submit your email address to receive the latest updates on news & host of opportunities from Wellness India.

Video

Magazines & Books

Read the latest franchising magazines and books to get comprehensive and up-to-date information on leading franchise systems, trends and more.

Recommended For You

Newsletter Signup
Submit your email address to receive the latest updates on news & host of opportunities.
Well Ness India

Copyright © 2009 - 2017 Franchise India Holdings Ltd.

The information contained herein is of generic nature only, and Franchise India is not, by means of this website or any part thereof, rendering professional advice or services. Before making any decision or taking any action that might affect your finances or business, you should consult a qualified professional advisor. Your use of this website or any of its pages or links given, is at your own risk and you assume full responsibility and risk of loss resulting from your usage. With respect to use of the website, kindly visit www.franchiseindia.com/terms.