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Government PolicyFeb, 16 2015

Budget 2015: Medical device manufacturers seek concession on import duty

India’s medical device industry, which is estimated at $5 billion is marred by huge reliance on imports. Thereby, the manufacturers urge government to give concession on the import duty in order to boost economic growth of the industry.

By WI Bureau

As Finance Minister Arun Jaitley is all set to unveil Union Budget 2015 on February 28, manufacturers of medical devices have sought import duty concessions from him.

The Association of Indian Medical Device Industry (AIMED) has also sought a blanket ban on 100 per cent foreign direct investment (FDI) in brown field projects.

"To enable the nascent Indian medical devices industry to survive, India needs to consider rationalisation of import duties to be zero per cent for natural resource, 2.5 per cent - 5 per cent for basic raw materials and packaging materials, and 5 per cent - 7.5 per cent for components and consumables," AIMED said in its Budget wish list.

"At least 10 per cent for finished medical devices or consumer goods to encourage manufacturing of components and complete devices," AIMED mentioned further in its wish list.

Significantly, the industry body also sought re-imposition of special additional duty (SAD) of 4 per cent on import of medical devices.

"Export subsidy should be given where fiscal incentives are robust enough to match our competitors. China gives 17 per cent export subsidy thereby ensuring a healthy minimum margin of 10 per cent to its exporters. We have no such matching policy," it added.

The size of medical devices industry is estimated at $5 billion. According to Assocham, the present landscape in Indian medical device industry is primarily import driven with imports contributing close to 75 per cent of the market.

 

Photo curtesy: Facebook

Related: Government to allow 100% FDI in medical devices

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