The association of Indian medical device industry (AiMeD) is a platform for Indian medical device manufacturers and represents the Indian medical device industry. The platform acts as a single point of contact and provides various services to medical device manufacturers. This platform aims to reduce the import reliance of the Indian medical device sector. Hence, it has urged for an increase in customs duty for medical devices.

AiMeD seeks for hike in customs duty for medical devices

Owing to the low customs duty for medical devices, the Indian medical device sector is heavily dependent on imported devices. The Indian medical device sector is more than 80% import-dependent. Thus, to reduce import dependence and increase domestic production, the AiMeD has submitted a memorandum to the Union Finance Minister. AiMeD has urged the finance minister to make a 10–15 per cent hike in customs duty for medical devices. This move will considerably reduce import dependence and encourage domestic production of medical devices.

The goal of AiMeD is to provide high-quality affordable medical devices to Indian consumers. Hence, this platform has requested the government to monitor the Maximum Retail Price (MRP) of imported medical devices. This action is required to curb the excessive mark-ups often seen in the market. Basically, this move is required to prevent the increase in cost of imported medical devices due to the increase in customs duty for medical devices. The AiMeD does not want the consumers to be affected by the artificially inflated MRP of imported medical devices. Thus, a balanced trade environment will be achieved, thereby making both imported and locally manufactured medical devices accessible to consumers.

Benefits of the imported medical device customs duty hike

Firstly, the most important goal of increase in imported medical device customs duty is to reduce imported dependence. Currently, the Indian medical device sector is heavily import dependent. Secondly, the AiMeD has requested an additional cess be imposed on imported medical devices. This also forms a part of the AiMeD’s initiative to reduce the Indian medical device sector’s import dependence.

These funds are to be used to improve and build the infrastructure of medical device parks and manufacturing facilities. Additionally, the funds are to be used to finance the PLIs intended to support domestic manufacturing of medical devices. Furthermore, investments on digital tools have to be made to support and improve patient care. These fiscal initiatives will steer India towards becoming a global manufacturing hub for medical devices. Moreover, these initiatives will have a vital role in fostering innovation and enhancing India’s medical device production capabilities. All these efforts for encouraging and supporting local production of medical devices will help achieve the goal of increasing healthcare spending to 3% of the country’s GDP.  Hence, India will be able to achieve self-reliance in medical technology and healthcare infrastructure.

Boosting the Indian medical device sector

The association of Indian medical device industry (AiMeD) is aimed at revitalising India’s medical device manufacturing industry. The goal is to make high-quality medical devices accessible to Indian consumers, thereby improving the quality of healthcare being delivered. Increasing investments on medical device manufacturing facility development will boost the local medical device manufacturing sector. Thus, local medical device manufactures will be able to manufacture high-quality and affordable medical devices. Furthermore, consumers will not have to depend on expensive imported medical devices. Moreover, in addition to hike in customs duty for medical devices, AiMeD has requested for a reduction in GST levied on medical devices. This move will provide further relief to Indian medical device manufacturers. Drop an email at [email protected] or call/Whatsapp on 9996859227 to make you medical device manufacturing company regulatory compliant.