'Customs duty adjustment, banning imports of used equipment to help medical devices industry reach USD 50 bn by 2030'

economictimes.indiatimes.com:

customs duty on certain items, banning import of used or old equipment, and introduction of performance linked incentive scheme for value-added production will help India's medical devices industry touch USD 50 billion by 2030, a report by think tank GTRI said. Suggesting six action points for the government and industry for accelerating growth of the sector, the Global Trade Research Initiative (GTRI) also asked the government to not allow input tax credit (ITC) for the IGST paid on import of items where basic customs duty is zero; combatting foreign influence; and encourage local sourcing for essential Make in India products.

«The Indian medical devices industry can expand from USD 12 billion to USD 50 billion by 2030, reducing import reliance to 35 per cent and boosting exports to USD 18 billion from USD 3.4 billion at present. The industry's growth potential could surpass that of the smartphone sector due to India's expanding health sector, projected to reach USD 600 billion by 2030,» GTRI Co-founder Ajay Srivastava said.

He said this shift could generate over 1.5 million jobs in medical device manufacturing and healthcare services like hospitals and labs. It has also suggested that basic customs duty be raised from the current 0-7.5 per cent to 15-20 per cent for devices not covered under WTO's Information Technology Agreement — 1.

«This approach is WTO (World Trade Organization) compatible, as bound duties stand at 40 per cent. Initial duty hike should apply to products with demonstrated quality production and exports of around Rs 20 crore,» it said.