 "Medical devices industry seeks roll back of import duty")
Medical devices and equipment industry has urged the government to completely roll back the import duty hike, proposed in the budget, to reduce patient inconvenience and cost.
Medical devices sector is largely supported by imports for meeting the healthcare needs of the country. In the budget, the government has announced move to relax import duty on spare and parts used to manufacture and maintain medical devices in India. This was long awaited to give necessary impetus to indigenous production of these devices.
FICCI has welcomed this move. However, the industry body feels that a simultaneous hike in import duty of medical equipment and devices will raise the cost and is likely to affect affordability of medical care in the country.
Milan Rao, chairman - FICCI Medical Electronics Forum (MEF), suggested, “High end and complex equipment and devices such as MRIs, CTs, cyclotrons, new generation heart valves, grafts, oxygenators, etc require technology transfer, ecosystem for manufacturing, manpower skills and robust supply chain, all of which are time consuming. Hence, any such duty increases for echnologically advanced equipment and devices must be introduced in a phased manner over 3-5 years.”
India is facing a tremendous opportunity in scaling up medical technology sector from $ 5 billion to $ 10 billion by 2020. “In order to maintain this growth trajectory and encourage investments in indigenous manufacturing, the sector should be incentivised. In light of Make in India’s realisation and continued affordable healthcare access in country the increase in customs duties should be reviewed,” said Probir Das, chairman FICCI Medical Devices Forum (MDF).
Medical devices sector is largely supported by imports for meeting the healthcare needs of the country. In the budget, the government has announced move to relax import duty on spare and parts used to manufacture and maintain medical devices in India. This was long awaited to give necessary impetus to indigenous production of these devices.
FICCI has welcomed this move. However, the industry body feels that a simultaneous hike in import duty of medical equipment and devices will raise the cost and is likely to affect affordability of medical care in the country.
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According to FICCI, this sector, being highly technology intensive, thrives on innovations which require an ecosystem for development and manufacturing complex medical devices and equipment. The 7 percent increase in duty coupled by high foreign exchange related pricing pressures puts medical technology (med tech) industry under stress as it endeavours to deliver affordable, quality medical access to all sections of population.
Milan Rao, chairman - FICCI Medical Electronics Forum (MEF), suggested, “High end and complex equipment and devices such as MRIs, CTs, cyclotrons, new generation heart valves, grafts, oxygenators, etc require technology transfer, ecosystem for manufacturing, manpower skills and robust supply chain, all of which are time consuming. Hence, any such duty increases for echnologically advanced equipment and devices must be introduced in a phased manner over 3-5 years.”
India is facing a tremendous opportunity in scaling up medical technology sector from $ 5 billion to $ 10 billion by 2020. “In order to maintain this growth trajectory and encourage investments in indigenous manufacturing, the sector should be incentivised. In light of Make in India’s realisation and continued affordable healthcare access in country the increase in customs duties should be reviewed,” said Probir Das, chairman FICCI Medical Devices Forum (MDF).