Budget reaction: Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD)
The Indian Medical Devices Industry has responded positively to Union Budget 2021. Sometimes a crisis helps to come out with bolder decisions. Major fillip to healthcare through PM Atmanirbhar Swastha Bharat Yojna, PLI Scheme, Health Infra allocation, focus on new and emerging diseases and health labs will surely address major gaps.
Finally, we may have something to help accelerate medical devices manufacturing as a Make in India enabler so that Indian National Healthcare security concerns are addressed – the inadequacy of which is being exposed in the crisis to address the coronavirus epidemic preparedness. We look forward to reading the fine print.
Rest we will be able to comment on after going through the fine prints on custom duty on medical devices and withdrawal of many related exemptions that were being roadblocks to Make in India as it was simply being cheaper and more convenient to import than manufacture.
We had been hoping that this will be a Make in India push budget for an Atmanirbhar Bharat and the finance minister has highlighted the need to support manufacturing sector to be part of global supply chain and need for it to grow on double-digit sustained basis.
The Indian medical devices industry is disappointed not to notice any changes in custom duty as done for other sectors and was hopeful that the fine print of the Union Budget would have possibly acted upon our recommendations on a Predictable Tariff Policy for a Make in India push for phased manufacturing plan for components and finished medical devices and allocations for testing infrastructure as well as for Med Tech Parks and Cluster developments.
