New Delhi: Providing a relief to countries’ domestic medical device manufacturers and the overall diagnostics sector, the Finance Minister Nirmala Sitharaman announced the revision of Basic Customs Duty (BCD) on X-ray tubes and flat panel detectors used in X-ray machines under the phased manufacturing programme.
Despite several unaddressed concerns, industry experts have welcomed the announcement and are expecting some positive outcomes which could strengthen the domestic manufacturing Industry by creating a level playing field and can increase their participation in the global market.
Welcoming the changes to the BCD on X-ray tubes and flat panel detectors, Raj Gore, CEO of HealthCare Global Enterprises Ltd, expressed that, “These sector-specific customs duty proposals for medicines and medical equipment under Indirect Taxes will result in substantial savings in procuring life-saving medicines and ease the burden of cancer care. “
Dr Prathap C. Reddy, Founder & Chairman of Apollo Hospitals said, “Adjustments in Basic Customs Duty for medical equipment components will support domestic manufacturing and lower costs for advanced technologies.”
Gautam Khanna, CEO of P.D. Hinduja Hospital and President of the Association of Hospitals, Mumbai, highlighted that “Synchronisation of Basic Customs Duty on X-ray equipment components with domestic manufacturing capacity demonstrates a nuanced approach to supporting local production while ensuring healthcare providers can access cutting-edge diagnostic tools.”
“The proposed reduction in customs duties on X-ray tubes and flat panel detectors for domestic X-ray machine production …. underscores a commitment to fostering inclusive growth within the healthcare sector, striving to bridge the rural-urban divide and ensure equitable access to essential services, ” Dr Azad Moopen, Founder & Chairman of Aster DM Healthcare said.
Dr Harsh Mahajan, Founder & Chairman of Mahajan Imaging and Labs & Chairman of the FICCI Health Services Committee said, ”This is a budget of continuity and exemption of customs duty on components of X-ray tubes and digital detectors, will lead to spurring of indigenous manufacturing of digital X-ray machines in India.”
Applauding the government decision Rajiv Nath, Managing Director of Hindustan Syringes & Medical Devices Ltd and Forum Coordinator of AiMeD echoed, “We are thankful to the GoI for the reduction in duty on the import of components of X-ray equipment until these get to be produced in India. This enables continuity in investment in efforts to become a manufacturing hub of x-ray equipment globally.”
D. S. Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre underlined that, the proposed reduction in the basic custom duty (BCD) on x-ray tubes and flat panel detectors for use in medical x-ray machines are commendable. By aligning these changes with domestic capacity addition, the government is not only supporting the growth of local manufacturing but also ensuring that advanced medical technology is available to improve diagnostic accuracy and treatment.”
Accepting the changes Dr Praveen Gupta, Principal Director & Chief of Neurology at Fortis Hospital, said, “reduction of duties on certain medical technologies such as x-ray tubes and flat panel detectors is a significant move to strengthen domestic capabilities in the healthcare sector. Additionally, it aligns with the broader goal of enhancing infrastructure investment and energy efficiency, creating a more conducive environment for improving healthcare delivery and outcomes in India.”
Chaitanya Sarawate, Managing Director of Wipro GE Healthcare echoed, “It’s heartening to see the industry recommendation being heeded by the government by way of providing exemptions of custom duties on specialised raw materials and reduction of custom duty from 15 per cent to 5 per cent brought inadvertently on X-ray tubes and flat panels detectors. These steps can further be bolstered by constructive dialogues with the industry conversations to evaluate the local manufacturing capabilities.”
Overall, experts positively evaluated the Union Budget 2024 for its steps toward affordability and local manufacturing in the healthcare sector, However, challenges such as high customs tariffs on other medical devices, infrastructure deficiencies, and the need for comprehensive regulatory support remain.
