Budget 2018: Makers of medical devices feel the pinch with 10% customs duty

Local players claim that if no corrective action is taken then 25 per cent of units may close in the next two years

The local manufacturers in the medical devices industry, which foots a Rs 273.4 billion imports bill annually, are in for a rude shock.  The finance ministry has decided to allow a 2.5 per cent exemption to device importers while it has raised the customs duty (to protect the local industry and encourage Make in India) to 10 per cent on certain devices as against the current 7.5 per cent. The latest move by the ministry effectively nullifies the impact of the customs duty hike. Local players claim that if no corrective action is taken, then 25 per cent of units