Indian Medical Devices Sector Disappointed with No Steps Taken in this Budget
Published By : 03 Mar 2015 |Published By : QYRESEARCH
The Budget of 2015 made no provisions for the import intensive medical devices industry to encourage the 'Make in India' philosophy. The Budget only addressed the macro issues that were bothering the industry. GSK Velu, Trivitron Group of Companies Founder and Managing Director stated that there has been no change in the budget announcement for medical devices sector for the coming fiscal year which is an integral part of the healthcare sector. However, he stated that the Budget provides larger disposable income to the public for making healthcare expenses.
Presently, the Indian medical devices industry is importing devices worth INR27,000 crore and yet no focused effort has been made to reduce this expense under Modi’s ‘Make in India’ initiative. However, Varun Khanna, MD at BD India stated that a 100% FDI in manufacturing of medical devices via the automated route and decrease in import duties on raw materials will straighten the duty structure. He further added that the proposition of sequential reduction in corporate tax from 30 to 25 percent in the coming four years will encourage more number of investors to take an interest in the healthcare sector.
Himanshu Baid, MD at Poly Medicure stated, while the healthcare industry is happy about promised ease for business operations and getting the regulatory clearances, a few incentives for manufacturing processes would have really motivated the key players. The players were expecting a tax holiday for companies who have recently set up plants along with single window clearance to make the processes even easier.