You are here: Home » Budget » Reactions » Industry
Business Standard

No major steps for medical devices sector in Budget: Industry

Players lament lack of push to 'Make in India' drive in an industry that imports devices worth over Rs 27,000 cr

Press Trust of India  |  New Delhi 

The has not initiated any major steps for the import-dependent medical devices sector to give a fillip to the Centre's 'Make in India' campaign, though it has addressed several macro issues facing the sector as a whole, the has said.

"...Nothing has been done for the heavily import dependent medical devices which is the fourth pillar of healthcare sector like medical education, health delivery and pharmaceutical industry," Trivitron Group of Companies Founder and Managing Director GSK Velu said..

Read our full coverage on Union Budget

He, however, said the has addressed several macro issues and focussed on the health sector by providing disposable income to the public for healthcare expenses.

The medical devices imports over Rs 27,000 crore worth of medical devices and nothing specific has been done to push up the Prime Minister's "Make in India" initiative in this Industry, he added.

BD India MD Varun Khanna said that after the announcement of 100 per cent FDI in medical devices through the automatic route, the new proposals such as reduction in duties on the raw materials will reverse the inverted duty structure.

He also said that proposed sequential reduction in the corporate tax from 30 per cent to 25 per cent over 4 years would also encourage investment in the healthcare sector.

Poly Medicure MD Himanshu Baid said, "While ease of doing business and obtaining regulatory clearances expeditiously is what is very motivating for the healthcare industry...What I expected from the budget is some incentives on medical manufacturing which has not been mentioned about."

The sector was expecting announcement of tax holiday for medical technology companies who were to set up new manufacturing plants and announcement of medical technology manufacturing hubs with single window clearance for ease of manufacturing, he added.

"There are no specific announcements on innovation and R&D for this sector and if this trend continues we will be importing more than Rs 50,000 crore of medical devices in the next three to four years time," Velu said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, March 01 2015. 14:46 IST