With a view to revive manufacturing eco-system and create conducive environment for medical devices within the country, the medical devices industry has sought for immediate review of the budget proposals. The Association of Indian Medical Device Industry (AIMED) wants India to have a 15 per cent price preferential policy over imports to offset 17 per cent subsidy being given by China to its manufacturers.
Likewise, industry wants the government to withdraw earlier concessional duty notifications and reverse the bias of inverted duty structure which is among the main reason for giving price an advantage to imports and manufacturing devices within India unviable. Rajiv Nath stated that India’s US$ 5 billion medical device industry is over 70 per cent import dependent with import dependency as high as 90 per cent in electronic medical device category. The industry fears that the import bill, which is presently at Rs. 22,000 crore, will cross Rs. 50,000 crore in next five years if no corrective action is taken.
“Should passionate domestic manufacturers who have been brazing it out despite adverse business environment be taken for further ride? Does government want the remaining surviving domestic manufactures to turn importers?” Nath questioned.
AIMED pointed out that there had been steady decline in domestic manufacturing, wherein, not more than a dozen odd domestic manufacturers have annual turnover of more than Rs. 50 crore. And that even less than five companies have turnover of more than Rs. 500 crore.
To protect their interest in the overtly competitive market, domestic manufacturers want the government to desperately roll-out positive and pro-active policy measures like buy India policy to promote domestic manufacturing. As they strongly believe that such policy would be in sync with the policy pursued by many countries including China and US to protect and boost their domestic industries.
On the latest FDI policy of permitting 100 per cent FDI in brownfield projects, Nath insisted that 100 per cent FDI in brownfield projects will either kill the remaining domestic players or simply encourage MNCs to go for cherry picking, thus making it essential to remove this clause. He further stressed that 100 per cent FDI should be limited only to greenfield projects with the condition that at least 60 per cent of Indian turnover should be met by manufacturing here.
dvantage to imports and manufacturing devices within India unviable. Rajiv Nath, forum coordinator of AIMED insisted that only this would make Indian manufactured goods competitive vis-à-vis imports while boosting domestic manufacturing.
Nath stated that India’s US$ 5 billion medical device industry is over 70 per cent import dependent with import dependency as high as 90 per cent in electronic medical device category. The industry fears that the import bill, which is presently at Rs. 22,000 crore, will cross Rs. 50,000 crore in next five years if no corrective action is taken.
“Should passionate domestic manufacturers who have been brazing it out despite adverse business environment be taken for further ride? Does government want the remaining surviving domestic manufactures to turn importers?” Nath questioned.
AIMED pointed out that there had been steady decline in domestic manufacturing, wherein, not more than a dozen odd domestic manufacturers have annual turnover of more than Rs. 50 crore. And that even less than five companies have turnover of more than Rs. 500 crore.
To protect their interest in the overtly competitive market, domestic manufacturers want the government to desperately roll-out positive and pro-active policy measures like buy India policy to promote domestic manufacturing. As they strongly believe that such policy would be in sync with the policy pursued by many countries including China and US to protect and boost their domestic industries.
On the latest FDI policy of permitting 100 per cent FDI in brownfield projects, Nath insisted that 100 per cent FDI in brownfield projects will either kill the remaining domestic players or simply encourage MNCs to go for cherry picking, thus making it essential to remove this clause. He further stressed that 100 per cent FDI should be limited only to greenfield projects with the condition that at least 60 per cent of Indian turnover should be met by manufacturing here.