As the interim budget approaches, the Association of Indian Medical Device Industry (Aimed) has appealed to the Indian government to address the escalating import bill, currently standing at over Rs 63,200 crore.
Aimed emphasised the need for urgent measures to reduce the country’s over 80 per cent dependence on imports in the medical device sector.
According to a letter addressed to Union Finance Minister Nirmala Sitharaman, Aimed expressed concern over the continuous increase in imports, which rose by over 21 per cent in the last 12 months, reaching Rs 61,000 crore.
The association highlighted specific concerns about a 33 per cent surge in imports from the USA, a dominant exporting country to India, and substantial increases from Germany, the Netherlands, China, and Singapore.
Aimed stressed the importance of replicating policies that have successfully boosted consumer electronics and mobile phone manufacturing in the medical devices sector.
The association proposed a customs duty increase to a nominal 10-15 per cent and the implementation of a predictable tariff policy.
Aimed also called for the correction of an Inverted Duty by introducing a health cess of 5 per cent on remaining medical devices, with the proceeds earmarked for Ayushman Bharat.
Rajiv Nath, Aimed Forum Coordinator, emphasised the need for a trade margin capping by monitoring Maximum Retail Prices (MRP) of imports, especially when MRP is significantly higher than the CIF (Cost, Insurance, Freight) value.
The Indian medical devices industry, projected to grow from USD 12 billion to USD 50 billion by 2030, aims to reduce import reliance to 35 per cent and increase exports to USD 18 billion.
Aimed stressed the critical role of supportive policies in achieving these goals, urging the government to prioritise the growth and self-sufficiency of the domestic medical device industry.