While NITI Aayog is now working on a tentative list of medical devices that have the most potential for export, to help the domestic manufacturing industry, with China being the biggest competitor in the field, a group of medical technology (meditech) companies have appealed to the Union Health Ministry to cut the high customs duties on medical devices immediately.
They say that the high customs duty is also having an adverse impact on quality of healthcare accessed by Indian patients here.
“High customs duties have an adverse impact, which contradicts the government’s efforts to provide low cost healthcare available to the masses. This is particularly concerning since more than 70% of the demand for medical devices is being met by global innovators,” said Sanjay Bhutani of Medical Technology Association of India (MTAI), which represents the global medical device and equipment industry in the country.
Lower elsewhere
Advocating the need for tax cuts, the group said that the customs duty regime on most medical devices in the neighbouring countries of Nepal, Bangladesh, Sri Lanka and Bhutan was lower than in India, and the differential in duties could lead to the smuggling of low bulk-high value devices.
“The result will not only be the loss of revenue for the government, but also patients will be beset with products that are are not backed with adequate legal and service guarantees,” added the group.
