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Interim Budget 2019: Govt may consider cutting customs on medical devices

The move would also help promote the government's ambitious Make in India initiative, said the source

Budget 2019  |  Cii  |  Pds

Press Trust of India  |  New Delhi 

medical devices
Representative image

The government may consider reducing customs duty on certain medical devices in the forthcoming budget with an aim to boosting domestic manufacturing of such goods, sources said.

The move would also help promote the government's ambitious Make in India initiative, said the source.

Industry chamber in its has pre-budget memorandum has asked the government to reduce customs duty from 10 per cent to 2.5 per cent on Plates used for nasal reconstructive surgery.

It has also asked to exempt the duty on instruments for joint replacement and spinal equipment.

"Reduction of basic customs duty on Plates to 2.5 per cent would reduce the cost and benefit the patients," has said.

The government has recently set up National Medical Devices Promotion Council (NMDPC) to boost manufacturing, attract investments and promote exports of the fast-growing sector.

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 specially 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.

Currently, 100 per cent FDI is allowed under the automatic route in the medical devices sector to encourage manufacturing of equipment.

The government would present the Budget on February 1.

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First Published: Mon, January 21 2019. 17:25 IST