Budget 2016: Indian Healthcare Industry is one of the largest growing service sectors contributing commercially, about 10% to gross domestic product (GDP) and offering employment to around 4 million people. India is a very small manufacturing hub for Medical Equipment and imports over 70% of medical devices. The sophisticated medical devices have become the integral part of rendition of medical services and have tremendously increased the quality of healthcare services in India. To promote the “Make in India” campaign, Government should provide adequate incentives and encourage complete or partial in house manufacturing of these sophisticated medical equipments to provide cost effective healthcare facilities to common man in India at an affordable price.

Currently, imports of medical, surgical and dental equipments are subject to 5% basic customs duty while lifesaving medical equipments are also levied at 5% basic customs duty subject to certain conditions increasing the cost of health care services. Therefore, it requires immediate attention to provide these equipments falling under chapter headings 9018, 9019 9020 and 9027 at Nil Basic Customs duty.

Certain medical products falling under Chapter heading 9018 to 9022 and parts and  accessories are currently levied to 5% of basic customs duty in terms of Sl. No. 474 of NotificationNo.12/12-Cus dated 17.03.2012 be totally exempted from import duties including parts, accessories, consumables or assembly components required for manufacturing or assembly at site. Rationalization of such exemptions will provide more clarity and remove current classification disputes.

Additionally, for the aforesaid exemption it is recommended that the list of critical care products should be enlarged to include patient monitoring systems and image guidance systems, pacemakers and their leads for cardiac therapy, external defibrillators, NT and ENT surgery products, deep brain stimulation implanters,  drug pumps, leads used in neuro surgery, heart lung machine and oxygenators used in vascular therapies, respirators and masks ( industrial and health care), dialysis machines equipment etc.
These rationalizations in terms of providing exemptions would add a long way to promote better health care facilities and lead to caring India.
By Sudhir Pai, Executive Director and CEO, Vikram Hospital, Bengaluru