Imports of medical devices rise 21% till October to Rs 61,262.84 cr

India’s dependence on medical devices shipped from abroad grew significantly between November 2022 and October 2023 with imports jumping by 21 per cent to Rs 61,262.84 crore. The top suppliers of medical devices were the US, Germany and the Netherlands, according to the data from the Department of Commerce.

The data compiled by the Association of Indian Medical Device Industry (AiMeD), which is an umbrella body representing the domestic medical devices industry, showed that the top five HS codes, which constitute nearly 80 per cent of the total imports into India, have seen an increase of 26 per cent. The imports of consumables and equipment (HS code 9018) went up by 14 per cent to around Rs 18,700 crore. This roughly constitutes 32 per cent of the import basket. Similarly, imports of imaging medical electronics went up by 10 per cent to around Rs 6,900 crore.

Imports from the US grew by 33 per cent, followed by Germany (27 per cent) and the Netherlands (20 per cent). The imports from China grew by 11 per cent the data shows.

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The automobile industry has a duty protection of over 100 per cent, and auto component imports draw a duty of 40 per cent, an industry insider, wishing anonymity, said, adding, “However, the medical devices industry has been seeking a nominal 15 percent duty which is long overdue”.

“It’s disheartening to note that imports are still on an increasing uptrend of over 21 per cent over the last 12 months at Rs 61,000 crore compared to Rs 50,000 crore in the same period of preceding 12 months. Policymakers need to review the steep 33 per cent increase in imports from the USA, the dominant exporting country to India of Rs 10,858 crore and Germany at Rs 6188 crore, up by a steep 27 per cent,” said Rajiv Nath, forum coordinator, AiMeD.

“Unless policies of consumer electronics and mobile phone manufacturing by levy of nominal 15 per cent duty are implemented, we will continue to be import dependent at zero to 7.5 per cent duty rates. It’s not that we are not competent - in many products, India is globally competitive but sadly not in our own country,” he said.

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Chandra Ganjoo, Group Chief Executive Officer, Trivitron Healthcare, said, “As we approach the Union Budget 2024-25, the MedTech industry in India holds high expectations. With an alarming 80-85 per cent dependence on imports, resulting in a massive import bill of over Rs 63,200 crore, it's crucial for the government to catalyse domestic manufacturing. This not only reduces the financial strain but also propels India towards self-reliance in medical technology.”

Ganjoo feels the industry is for a comprehensive strategy: incentivising R&D and indigenous production, streamlining regulatory processes for faster product approvals, and enhancing infrastructure and skills.

A recent report by the Global Trade Research Initiative (GTRI) said: “The Indian medical devices industry can expand from $12 billion to $50 billion by 2030, reducing import reliance to 35 per cent and boosting exports to $18 billion.” 

 

Country	Import Nov 2022-Oct 2023 (Rs cr)	YoY growth (%)
USA	10858.97	33
China	10384.62	11
Germany	6188.2	27
Singapore	5520.59	15
Netherlands	3552.02	20

Source: DoC data compiled by AiMeD