HYDERABAD: IT and Industries Minister, KT Rama Rao, has written to Union Minister for Commerce and Industry, Piyush Goyal, highlighting the key challenges faced by the medical devices industry and requested favourable action.
During the recently held 20th-anniversary edition of BioAsia, a roundtable meeting on medical devices was conducted where CEOs and association representatives attended and raised their concerns regarding the industry.
Rama Rao cited concerns regarding GST implications, import substitution, increased self-reliance, inverted duty structures impacting Make in India, inadequate testing and certification infrastructure, availability of raw materials, and supply chain challenges.
He called for a review and reduction of GST on medical devices and diagnostics to 12% and 5%, respectively, as opposed to the current 18% levied. He stated that medical devices are not luxury items and it is vital to recognize that devices and diagnostics will be critical in making healthcare accessible to all.
The Minister also addressed the constant challenges with the availability of raw materials in the medical device industry and suggested promoting local indigenisation of component manufacturing for medical devices.
Rama Rao urged the Centre to consider establishing schemes to promote component manufacturing in India and incentivise companies by raising import duties in phases under a phased manufacturing plan.
He also expressed his willingness to partner with the GoI to set up a Medical Imaging Hub in the Medical Devices Park, Hyderabad.