The Medical Technology Association of India (MTaI), which represents leading research-based medical technology companies, on December 11 said that the industry expects the government to address the pending list of demands in the upcoming Union Budget 2023.
The MedTech industry last year saw several reforms which aim to take India’s regulatory mechanism on a par with the best global systems available.
Several efforts have also been undertaken to reduce compliance burdens which will go a long way in reassuring investors and attract foreign direct investment in the sector as is evident from the first three quarters of 2022 but the government needs to do more, feels the industry.
As per government data, nearly 80 percent of medical devices are imported into India to meet the rising demand for quality healthcare, pointed out Pavan Choudary, MTaI chairman and director general, adding that the customs duties and taxes levied on medical devices in India are one of the highest in the world.
“It is also the highest among the neighbouring countries which directly impacts patient affordability and is contradictory to what the government is trying to achieve,” argued Choudary. “As the preparation for the Union Budget 2023 gets underway, we expect a correction in this.”
He added that the industry expected more from the previous Union Budget than it yielded and also says that the sector requires more focus in government outlays to ensure organic growth of the industry and realise its true potential.
One way to achieve this is by increasing the public health spending to meet the current gaps in healthcare demand and supply, Choudary said and added that separate budget should also be allocated for the promotion and marketing of the medical device sector globally, he added.
Need of the industry
As per the MTaI, the issues which need to be addressed in the Budget this year include reduction of high customs duties to 2.5 percent on medical devices, removal of health cess ad valorem and allocation of separate funds for the promotion of medical devices industry.
The association has also stressed on the need of increasing public health spending to meet the demand-supply gap in healthcare sector, incentivising skilling initiatives, exempting free medical device samples from TDS and raising tax exemption and benefits for patients.
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