Domestic medical device makers seek hike in basic custom duty
NEW DELHI: The government needs to increase the basic customs duty on medical devices in the range of 5-15 per cent to promote domestic manufacturing, Association of Indian Medical Device Industry (AiMeD) said today.
The current slab is 0-7.5 per cent, it said.
"The government has rightly revised custom duty on Electronics to up to 20 per cent recently to maintain the investment climate, and same is sought for Medical Electronics where import dependency is 90 per cent," AiMeD Forum Coordinator Rajiv Nath told PTI.
He said nominal import duty on critical items is not protectionism but sound 'Make in India' economics.
The industry body urged the government to introspect as to why, even after three years of the 'Make in India campaign, the medical device manufacturing is still floundering.
On its expectations from the Union Budget (2018-19), AiMeD said the medical devices sector expects, "extension of inverted duty tariff rationalisation to medical electronics & diagnostics".
It also urged the government to expedite buy Indian policy drafted by Department of Pharmaceuticals which is pending with Ministry of Health & Family Welfare.
AiMeD also asked the Department of Pharmaceuticals to accelerate trade margin capping proposal in the range of 50- 100 per cent, depending on the cost of the devices.