ADMI Urges Govt to Scrap Inverted Duty, Reconsider Refurbished Devices in Budget 2024-25

The industry urges an end to inverted duty, a stop in the importation of used medical devices, and a solution to the challenges faced by medtech exporters.

The Association of Diagnostic Manufacturers of India (ADMI) has urged removing the inverted duty structure, discontinuing the import of refurbished medical devices permitted in the last budget, and addressing challenges faced by medtech exporters.

The industry body has presented a comprehensive list of demands to the Central government, urging prompt action to bolster the medical devices sector. 

Highlighting the critical nature of the concerns, Jatin Mahajan, secretary of ADMI, said, "For India to shine on the global MedTech map, the government must address these concern areas on a war footing." He called for a clear-cut path in the upcoming Budget for the year 2024-25 to pave the way for the industry's growth.

Key Issues Raised by ADMI

The ADMI has shared the following concerns before the Central government to address during the Union Budget 2024. These include:

1. Inverted Duty Structure

The ADMI pointed out the long-standing issue of the inverted duty structure, hindering the growth of the medical devices segment. Mahajan expressed disappointment over the government's inaction on this front.

2. Refurbished Medical Devices Import

The government's decision to allow the import of refurbished medical devices was criticised for contravening the National Medical Device Policy 2023, opening the door for the potential dumping of outdated technology and electronic waste.

3. Procurement Policies and 'Made in India' Preference

The ADMI raised concerns about the government's procurement policies favouring imported devices over domestic ones. The lack of effective implementation of the 'Made in India' preference in state government purchases was highlighted.

4. Export Challenges and EPC-MD Strengthening

ADMI stressed the need to strengthen the EPC-MD to effectively address export issues faced by the medtech industry. The goal is to boost India's medical devices export from Cr in 2022 to an anticipated $10 billion by 2025.

5. Quality Standardisation and Rationalisation

The association called for standardisation and rationalisation to ensure that Indian standards like ICMED gain equal recognition as international standards, reducing the need for individual certifications in each export destination.

6. Technology Transfer and Innovation

Recognising India as a global centre for frugal medical device engineering, ADMI urged government-industry interactions to facilitate the transfer of relevant technologies. The promotion of an innovation culture in India to reduce dependence on imports was also emphasised.

Further, highlighting the impact of technologies such as AI, ML, IoT, and telemedicine on the medtech segment, Mahajan stressed the urgent need for safeguards and guidelines. He called for a comprehensive AI and cybersecurity policy to address data privacy issues, citing the cyber attack on the All India Institute of Medical Science in 2022.

Concerns Echoed by MTal & AiMeD

As the healthcare sector awaits Union Budget 2024, various industry associations, including The Medical Technology Association of India (MTaI) and the Association of Indian Medical Devices Industry (AiMeD), have called for policy changes to create a conducive environment for affordable and accessible healthcare in India. 

Recently, The Medical Technology Association of India (MTaI) has called on the Finance Ministry for a reduction in customs duties on non-substitutable medical device imports. The body has asked the Ministry to address key concerns in the healthcare sector ahead of the Union Budget 2024.

It is here to note that, despite several efforts to streamline regulations and reduce compliance burdens, the industry still grapples with challenges affecting patient affordability.

Days back, the Association of Indian Medical Devices Industry (AiMeD) also appealed to Union Finance Minister Nirmala Sitharaman for measures to boost domestic manufacturing and monitor the Maximum Retail Price (MRP) of imports, addressing the surge in medical device imports.

AiMeD expressed its concern, highlighting that imports have consistently exceeded INR 60,000 Cr for the past two years, and a further 20% increase is anticipated in the current year

As the healthcare sector eagerly anticipates the Union Budget 2024, these proposals aim to create a conducive environment for affordable and accessible healthcare in India.