Pre-budget expectation 2021: Jatin Mahajan, MD, J Mitra & Company and Joint Coordinator – IVD (AiMED)
The Indian healthcare industry has yet again established its yeoman credentials, managing the corona pandemic in such a remarkable manner. The healthcare industry is also playing a key role in driving government initiatives like Ayushman Bharat (Universal Health Coverage) and Make in India initiative.
To ensure a level playing field between Indian and foreign diagnostics players, and to ensure seamless growth of the Indian diagnostics industry the IVD industry expects –
1. The draft medical devices policy is yet to be implemented. This should be actioned immediately
2. The prevailing inverse duty structure favoured finished products (imported IVDs) over raw materials (made in India IVDs) – consequently leading to an unequal playing field for all domestic producers of IVD devices. There is a need to cut down import duty on raw materials and hike import duty on finished goods, which is the lowest in India amongst the BRIC countries. This is very critical.
1. Just to cite an example, ELISA finished having zero per cent duty and 5 per cent IGST, whereas the raw material for ELISA kits under the same HS code attract 5-20 per cent import duty plus 12% IGST – creating a price differential of 20-25 per cent, and tilting the balance away from the home-grown manufacturers.
3. There is a need for a robust strategy to establish ICMED as a robust Indian certification mark equivalent to the likes of CE and FDA
4. Medical devices manufacturing hubs, that provide the right mix of common infrastructure, facilities, and subsidies for technological up-gradation to increase sustainability and economies of scale
5. Aspects critical for winning the Make-in-India race are – ensuring a cost advantage over China, faster government permissions and single-window clearances, ease of doing business, adequate financing, competent infrastructure, and soft loans with longer repayments, should be key focus areas in the coming budget.
