Union Budget: India to remain import-dependent on medical devices

Hyderabad: Experts claim that the union health budget helps maintain the status quo and India's dependence on imported medical devices. Mr Rajiv Nath, on behalf of the medical device industry, expressed dissatisfaction with the 2023 Union Budget held on February 1st. The new budget crushed the hopes of business leaders that the government would finally stop importing 80–85% of its medical devices. Despite the prime minister urging the medical devices industry to become Atmanirbhar, the import bill for the sector grew by 41 per cent in FY22.

The import bill for these devices was Rs 44,708 crores in FY21, and it rose to Rs 63,200 crores in FY 22. Industry leaders had put their faith in assurances from government agencies and the recommendations of the Parliamentary Committee on Health.

"If the government implements even 70% of the recommendations, we could have seen a reversal in the import dependence and growth of the domestic industry," Rajiv Nath said.

Due to cheap import taxes and ease of importation, imports of medical devices from China increased by about 50% last year, from 9000 crores to 15000 crores. The government had to rely on these domestic producers when COVID-19 disrupted global trade routes. Domestic producers pushed the Indian segment towards self-reliance when there was a shortage of COVID-related goods.

However, Mr Rajnath added that the government's plan to upgrade labour skills in medical technology manufacturing is the only positive development. Experts believe the Indian market for medical gadgets might be worth $50 billion by 2030. "We can only be hopeful that the fine print of the Union Budget would possibly act upon our recommendations on the levy of a cess to enable nominal protection for investors and commercial viability," he said

"It will be impossible to produce in India and to realise our vision to be among the top 5 manufacturing hubs in the world for medical devices and align this with our PM's vision of being Atmanirbhar if the basic customs duty is 7.5% or lower," he concluded.