Union Budget 2024 is a comprehensive continuity of the earlier roadmap for India’s ‘Atmanirbhar Bharat’

Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD) shares his views on union budget 2024

Rajiv Nath on behalf of the Indian medical devices Industry has praised the interim Union Budget 2024 as a comprehensive continuity of the earlier roadmap for India’s ‘Atmanirbhar Bharat’ during the Amrit Kaal but he also pointed out that we await the fine print to study if Department of Pharmaceuticals recommendations have been addressed as seemingly the budget has fallen short of expectations for addressing the rising import graph of medical devices and soaring import bills worth over Rs 63,200 crore ($8 billion).

Nath commended the government’s focus on ‘Nation First’, accelerated infrastructure development, research and development, skill development, sustainability, digitalisation, innovation, low-interest rate financing for research and development in the pharma and tech sector, and youth and women empowerment. Specifically, Nath applauded the announcements regarding the establishment of medical colleges and the expansion of preventive vaccination and Ayushman Bharat to ASHA and Aganwadi workers.

Nath also welcomed the port connectivity corridors and high traffic density corridors through PM Gati Shakti and the focus on Northeastern states as it will improve supply chain management and infrastructure.

Nath’s comments suggest that the domestic medical technology industry may benefit from the budget’s focus on green growth, youth and women empowerment, and farmer centricity, which are aligned with Vision 2047, and the principle of reform, perform, and transform will ensure that India has a modular economic structure for all sections of business and society during the Kartavya Kal, enabling India to address global challenges and sustain development.

We do hope to see in the fine print, action on the assurances from various government departments to implement the National Medical Devices Policy 2023 and make it attractive and profitable to make in India rather than import into India .

The Indian medical devices industry’s expectations were:

1. Increase in Custom Duty to a nominal 10 per cent-15 per cent Duty and a predictable tariff policy

2. Correction of Inverted Duty by levying Health Cess of 5 per cent custom duty on balance medical devices (this was not earlier applied to all HS Codes). Cess is used for Ayushman Bharat.

3. Trade margin capping by monitoring MRP of Imports (if over 10 – 20 times of CIF)

4. Income tax benefits for project investments in medical devices manufacturing.

As per GTRI report of August 2023, the Indian medical devices industry can expand from $12 billion to $50 billion by 2030, reducing import reliance to 35 per cent and boosting exports to $18 billion. Supporting policies are needed so that Indian medical devices industry can make quality healthcare accessible and affordable for the common masses, aim to place India among the top five medical devices manufacturing hubs worldwide and help end the 80-85 per cent import dependence forced upon us and an ever-increasing import bill of over 63,200 Crore.

We can only be hopeful that the fine print of the Union Budget would possibly act upon our recommendations, said Nath who has been persevering to work with the government in making India as leading manufacturing global hub.