The government needs to increase the basic customs duty on medical devices in the range of 5-15 percent to promote domestic manufacturing, Association of Indian Medical Device Industry (AiMeD) said today.
The current slab is 0-7.5 percent, it said.
It stated that the medical devices sector expects an extension of inverted duty tariff rationalisation to medical electronics and diagnostics. Medical devices include any instrument, apparatus, appliance, implant, material or other articles, whether used alone or in combination, including the software intended by its manufacturer to be used especially for human beings or animals for one or more of the specific purposes. India has achieved a major global position in the pharmaceutical sector. However, the same has not been replicated in the medical devices industry.
The installed manufacturing capacity is lying idle, and many manufacturers are converting into traders, and realigning their business strategy as importers/marketers after resigning to lack government support, and facing discrimination at even government-owned hospitals, he said. \”Even basic consumables like thermometers, hot water bottles, disposable syringes, and needles are being imported and sold as Indian brands. We are encouraging pseudo manufacturing \”, he added.
Domestic manufacturers are finding it difficult to compete in government tenders due to low-priced Chinese products procuring tenders, or being beaten by restrictive conditions on \”perceived quality\” on customs duty.
Currently, 100 percent FDI is allowed under the automatic route in the medical devices sector to encourage manufacturing of equipment.
