New Delhi, Feb 15 : Medical device manufacturers have sought import duty concessions in the next budget to be unveiled by Finance Minister Arun Jaitely on February 28. The Association of Indian Medical Device Industry (AIMED) has also sought a blanket ban on 100 per cent foreign direct investment (FDI) in brown-field projects. (Read: Union Budget 2015: Rating agency Fitch expecting a slew of reforms)
“To enable the nascent Indian medical devices industry to survive…India needs to consider rationalisation of import duties to be zero per cent for natural resource, 2.5-5 per cent for basic raw materials and packaging materials, 5-7.5 per cent for components and consumables. “And at least 10 per cent for finished medical devices or consumer goods to encourage manufacturing of components and complete devices,” AIMED said in its budget wish-list.
The size of medical devices industry is estimated at USD 5 billion. The industry body also sought re-imposition of special additional duty (SAD) of 4 per cent on import of medical devices. “Export subsidy should be given where fiscal incentives are robust enough to match our competitors. China gives 17 per cent export subsidy thereby ensuring a healthy minimum margin of 10 per cent to its exporters. We have no such matching policy,” it added.