Tax sops likely on life-saving devices and equipment

Drug Today
The Government appears to be serious to provide big push to the Indian Medical Devices and Equipment Sector. The push is expected to come with the recommendations of a task force constituted by the Government recently to look into difficulties faced in domestic manufacturing of medical devices.

 Pharmaceuticals Secretary has assured that the recommendations would come with two months.
“There are a lot of tariff barriers and it has become very easy to import world class equipment because materials are not available here, any equipment comes here to save a life of a human being we give all tax concessions,” said VK Subburaj, Secretary, Department of Pharmaceuticals.

The Indian Medical Devices and Equipment industry, valued at $5 billion, contributes considerably to India’s $60 billion healthcare sector. Moreover, it is growing at a faster annual rate of 15 per cent than 10-12 per cent growth seen in the healthcare sector in its entirety. A rise in the number of hospitals and the increased requirement for healthcare facilities creates a need for sophisticated devices and equipment, which can provide accurate treatment to individuals.

 However, low penetration, accessibility, affordability, awareness, nascent regulatory environment, low indigenous manufacturing, no distinct status of the industry, complex rules and guidelines and high capital requirement are key challenges, the industry is facing.

 “We have recently formed a task force, we are discussing all issues affecting the growth of this sector, the recommendations will be coming in another two months’ time,” Subburaj, Secretary, said recently at an Assocham Summit. The Task Force that includes stakeholders including Commerce Ministry, DIPP, Health and family welfare Ministry and all associated industries is chaired by the Pharmaceuticals Secretary.

 Senior officials and industry representative feel that ‘Make in India’ policy can provide the much needed push to this sector. The Government is expected to develop a regulatory structure leading to quality products being developed by manufacturers. The last few years have seen an increase in domestic manufacturing of medical equipment. With impetus from the government India is beginning to look forward to being recognized as a manufacturing destination for sophisticated medical technology.
 “We will look at modalities to see that these recommendations are implemented and a conducive atmosphere is created for medical devices manufacturing in India as today it is not conducive that is why the growth is very low,” said  the Secretary.
 “Today we are leaders in pharma sector as we are exporting drugs to 220 countries, it is a proud moment but in medical devices sector we cannot say so as we are almost at the lowest level, our coverage is only about one per cent which has to grow to at least about 10 per cent,” he added.

 The Government urgently needs to rationalise the tax structure if it wants to see India develops in this sector. Currently more than 90 per cent of medical devices and equipment are imported into India and only a small quantity of low profile items are manufactured in the country.

 The Association of Indian Medical Device Industry (AIMED) has suggested inter-ministry co-ordination to deal with complex multiple issues and diverse technologies for enabling indigenous manufacturing of medical devices and equipment in India.
                                                                                                                                                                                                    Drug Drug Today Medical Times of India
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