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Govt to consider increasing import duty on medical devices in upcoming Budget

30 Jan 2018 Evaluate

In a bid to boost domestic production of medical devices, the Indian government in the Budget for FY19 that will be presented on February 01, may consider increasing import duty on some of these products. This step would also help in promoting the government’s ambitious ‘Make in India’ plan.

The domestic industry including the Association of Indian Medical Device Industry (AiMeD) in its pre-Budget memorandum has asked the government to hike basic import duty on medical devices in the range of 5-15% as the current slab of the customs duty is 0-7.5% which is considerably low. AiMeD has stated that the medical devices sector is expecting extension of inverted duty tariff rationalisation to medical electronics and diagnostics. It also stated that the government has said that even after three years of the ‘Make in India’ campaign, the medical device manufacturing is still struggling.

India has achieved a major global position in the pharmaceutical sector, though, the same has not been attained in the medical devices sector. Presently, 100% foreign direct investment (FDI) is permitted under the automatic route in the medical devices sector in order to support production of equipment. Medical devices include any instrument, apparatus, appliance, implant, material or other article, whether used alone or in combination, including the software intended by its manufacturer to be used specifically for human beings or animals for one or more of the specific reasons.

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