Indian med device manufacturers are confident of boosting Make in India

The Indian Medical devices sector is expected to grow by 14-15 per cent from FY23-26E, buoyed by a higher investment in health care by the central government as well as the state governments and the private sector. Medical Devices play a critical role in healthcare, including wellness testing, disease prevention and detection and disease cure.

However, it is a matter of grave concern that while  India has landed on the moon, For the last 75 years, India has continued to import more than 75 per cent of its requirements for Medical Devices and is 100 per cent dependent on overseas manufacturers for its needs of most of the high tech Medical devices.

This is neither good for our people who cannot afford high-cost imported medical devices nor is it good for our Rashtra Sanman. It is high time our Honorable Prime Minister launches a great “Atma Nirbhar Bharat Mission” to reduce import dependence to 50 per cent in the next 10 years.

Indian medical device manufacturers are confident of boosting Make in India if the government supports the industry with the following policies for the next 10 years:

1. GST: While maintaining the current total GST rate of 18 per cent on imports, the general rate of GST on all Make in India medical devices should be reduced to 5 per cent. This would make it a level playing field for Indian manufacturers who suffer several higher costs as compared to overseas manufacturers.

2. PLI scheme: A PLI incentive of 7 per cent should be extended to each medical device produced in India over the next 10 years.

3. Tax Incentives for R&D: India can not become a successful manufacturer of medical devices if it does not develop advanced technologies for Medical devices. Encouraging research and development through weighted tax deductions of 200 per cent would spur innovation within the medical device sector. 
4. Inverted duty structure: It is unfortunate that despite the industry’s crying hoarse over this unjustified penalty for Indian manufacturers, this colonial-era injustice has not been corrected.

By implementing the above-mentioned doable measures,  the Government of India can be successful in :

1. Revolutionising medical device production and making  Atma Nirbhar Bharat in just 10 years in the crucial sector of medical devices. 
2. Create over 1 crore jobs for engineers, doctors and technicians
3. Reducing the cost of medical treatment not only in India but also in over 150 developing countries of the world benefitting over 5 Billion people.
4. Create a new and large medical tourism sector for treating patients not only from developing countries but also from developed countries in Europe and the US who just do not have adequate trained manpower for health care.  Medical tourism has the potential to add over 1 per cent to India’s GDP in 10 years. 
5. Fulfilling its commitment to a more affordable and robust healthcare system for all Indians.