New Delhi: Imports of medical devices rose 21 per cent between November 2022 and October 2023 to Rs 61,262.84 crore, driven by growth in imports from the US, Germany, and the Netherlands.
Data from the Department of Commerce, compiled by the Association of Indian Medical Device Industry (AiMeD), an umbrella body representing the domestic medical devices industry, showed that the top five Harmonised System (HS) codes, which constitute nearly 80 per cent of the total imports into India, have seen an increase of 26 per cent.
The data indicates that imports of consumables and equipment (HS code 9018) rose by 14 per cent to around Rs 18,700 crore. This constitutes nearly 32 per cent of the import basket. Similarly, imports of imaging medical electronics increased by 10 per cent to about Rs 6,900 crore.
Imports from the US grew by 33 per cent, followed by Germany at 27 per cent and the Netherlands at 20 per cent. (Refer to the chart).
An industry insider, who preferred to remain anonymous, stated that the automobile industry benefits from a duty protection of over 100 per cent, and auto component imports attract a duty of 40 per cent. “However, the medical devices industry has been seeking a nominal 15 per cent duty, which is long overdue,” the person said.
Rajiv Nath, forum coordinator at AiMeD, commented, “It is disheartening to note that imports are still on an increasing trend of over 21 per cent over the last 12 months at Rs 61,000 crore, compared to Rs 50,000 crore in the same period of the preceding 12 months. Policymakers need to review the significant 33 per cent increase in imports from the USA, the dominant exporting country to India at Rs 10,858 crore, and of Germany at Rs 6,188 crore, up by a significant 27 per cent.”
He added, “Unless policies of consumer electronics and mobile phone manufacturing, involving the levy of a nominal 15 per cent duty, are implemented, we will continue to be import-dependent at zero to 7.5 per cent duty rates. It is not that we are not competent – in many products India is globally competitive, but sadly not in our own country. Also, consumers are protected by maximum retail price (MRP) capping and price controls post-monitoring and not by making them dependent on imports at zero duties with MRP at over 10-20 times the imports’ landed price.”
Chandra Ganjoo, Group CEO of Trivitron Healthcare, stated, “As we approach the Union Budget 2024-25, the MedTech industry in India holds high expectations. With an alarming 80-85 per cent dependence on imports, resulting in a massive import bill of over Rs 63,200 crore, it’s crucial for the government to catalyse domestic manufacturing. This not only reduces the financial strain but also propels India towards self-reliance in medical technology.”
Ganjoo feels that the industry advocates for a comprehensive strategy: incentivising research and development (R&D) and indigenous production, streamlining regulatory processes for faster product approvals, and enhancing infrastructure and skills.
A recent report by the Global Trade Research Initiative (GTRI) said, “The Indian medical devices industry can expand from $12 billion to $50 billion by 2030, reducing import reliance to 35 per cent and boosting exports to $18 billion.”
