Medtech Sector Seeks Tax Reforms & Higher Export Incentives In Budget

ENA Sectors 2025-01-15 14:19:52 New Delhi, Jan 15 (KNN) India's medical device manufacturing sector has presented a comprehensive set of proposals for the upcoming Budget, focusing on tax standardisation, enhanced export benefits, and stricter price monitoring of imported devices. The proposals come as the industry seeks to boost domestic production and improve market competitiveness. Himanshu Baid, Managing Director of Poly Medicure, advocates for a uniform 12 percent GST rate across all medical devices to streamline the tax structure and enhance business efficiency. The industry has also requested an increase in export incentives under Commerce Ministry's Remission of Duties and Taxes on Exported Products (RoDTEP) scheme from the current 0.6-0.9 percent to 2-2.5 percent, aiming to strengthen the global competitiveness of Indian-manufactured medical devices. The sector's dependence on imports remains significant, with the Indian medtech market, valued at USD 12 billion, importing devices worth USD 8.2 billion in FY24. According to an EY-Parthenon report, 80 to 85 percent of medical devices in India are sourced internationally. This heavy reliance on imports has prompted the Association of Indian Medical Device Industry to raise concerns about consumer pricing, noting that patients often pay 10 to 30 times the landed price of imported devices. Divergent views have emerged on customs duty rates. While AIMED advocates for duties ranging from 5 to 15 percent on imported devices, the Medical Technology Association of India (MTaI) argues for lower rates on products lacking domestic alternatives. The high Customs duty regime significantly increases the cost of medical devices. This undermines the governments efforts to make affordable healthcare accessible to the masses through initiatives like Ayushman Bharat, Pavan Choudary, chairman, MTaI said. The industry has also called for the extension and enhancement of the production-linked incentive scheme for medical devices by an additional two to three years. According to Baid, this extension would support local manufacturers in scaling production, reducing import dependence, and achieving sustainable growth. These proposals reflect the sector's push toward self-reliance while maintaining access to affordable healthcare solutions. (KNN Bureau) 40650 https://knnindia.co.in/news/newsdetails/sectors/medtech-sector-seeks-tax-reforms-higher-export-incentives-in-budget 2025-01-15 14:19:52 knnindia.co.in Medtech Sector Seeks Tax Reforms & Higher Export Incentives In Budget