Sat Jan 11 15:19:57 UTC 2025: **Indian Medical Device Makers Urge Govt to Control Import Prices to Boost Domestic Industry**

NEW DELHI, January 11, 2025 – The Association of Indian Medical Device Industry (AiMeD) has urged the Indian government to regulate the maximum retail prices (MRPs) of imported medical devices. AiMeD argues that current import duties, while reduced, don’t benefit consumers because importers inflate prices, leaving patients paying 10 to 30 times the landed cost.

In a pre-budget memorandum to the Ministry of Finance, AiMeD highlighted that despite government efforts to reduce import duty (to 0-7.5%), imported devices, after GST, become 11% cheaper than domestically produced ones, hindering Indian manufacturers’ competitiveness, particularly in government tenders. The association points out that India has sufficient domestic production capacity for its 1.4 billion population, yet imports account for 70% of the market. This, AiMeD claims, is due to importers benefiting from GST input credits, unavailable before the GST regime, making importing cheaper and more convenient than domestic production.

AiMeD further stated that the current scenario is detrimental to the “Make in India” initiative. The Department of Pharmaceuticals supports AiMeD’s assertion that Indian manufacturers face a 12-15% disadvantage due to factors like infrastructure gaps, high financing costs, and limited R&D. The association is calling for the withdrawal of the concessional duty notification and instead proposes a 5-15% import duty on medical devices.

AiMeD coordinator Rajiv Nath’s letter to Finance Minister Nirmala Sitharaman emphasizes the need to remove the “NIL duty” exemption that has rendered the domestic industry unviable, pushing many manufacturers into importing. Imports, consistently above ₹61,000 crore for three years, jumped 13% in 2023-2024 to ₹69,000 crore, further highlighting the issue. AiMeD contends that while the startup ecosystem is encouraging, MSMEs face significant hurdles, including pressure from buyers demanding lower costs while maintaining high MRP-based trade margins passed onto patients.

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