AiMeD Thanks PM for 10% of GDP as Economy Boosting Package & Urges to Make India the 2nd Factory in the World for Medical Devices
Mr. Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD) in a letter to Hon’ble PM Shri Narendra Modi, whole heartedly thanked the PM for considering 10% of GDP as economy boosting package,
Mr. Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD) in a letter to Hon’ble PM Shri Narendra Modi, whole heartedly thanked the PM for considering 10% of GDP as economy boosting package, which is very favourable and among Top 5 Countries in the world. This is the opportunity for India to vie for being the 2nd factory in the world for Medical Devices & a dependable Manufacturer of quality products in Global supply chain.
In his letter, Mr. Nath highlighted the key issues the Indian Medical Devices industry has been requesting Govt. to support to address the 90% import dependence and over Rs. 45000 crore Medical Devices Import Bill by simple Executive Orders or by Policy. They don’t seek subsidies.
As India has all the potential to be 2nd factory of the world for medical devices, Mr. Nath said India should not lose this opportunity to make India self-reliant in medical devices and requested the PM to ask Ministries to act on following :
1) Expedite Govt. Payments ! Ease Cash Flow. Many MSME not paid over 6 to 12 months to Public Healthcare.
2) Custom Duty increase to 15% on Medical Devices as done for Mobile Phones, up from current Zero to 7.5% or Manufacturer will keep on importing, cheaper and convenient.
3) Ban Import of Preowned Medical Electronics
4) Preferential Price on Sale to Public Healthcare as permissible by GFR 153 & WTO based on Domestic Content % e.g.
15% for 50% Domestic Content
10% for 40% Domestic Content
5% for 25% Domestic Content
5) Medical Device Law needed as soon as possible as Drugs Act is not appropriate for Innovative Engineering Products like Medical Electronics. Ventilator could not have been made by Multiple New Manufacturer in 3-4 weeks, like by Maruti, had Drugs Act already been applicable on Ventilators. Additionally in absence of the Regulatory Approval, Manufacturer are discouraged to sell to Public Health, by Exclusionary Clause USFDA approval Clause.
6) Regulate MRP – Consumer Electronics like Infrared Thermometer needs to have a Maximum MRP 3-4 times of import Price. Currently a less than 1000 Rs. Non Contact Thermometer is selling at 6000 to 10,000 Rs, black marketing.
7) Customs may collate demand at National level and share with us, (Quantitative & Price Range) to attract Manufacturing Scale up.
In last 4 weeks by Team work of MSME Medical Electronic Manufacturers, Auto Makers, PSU’s, Scientists in DRDO, Component Association & Govt. Dept. helped to boost manufacturing of Ventilators and from 5500 Ventilators per month in February India will make over 33000 Ventilators in May and 40,000 in June from 15 Manufacturers. By Team Work it’s Possible.
“The government has thankfully quickly taken some much needed drastic and bold steps to control the pandemic. We also appreciate the collaborative efforts of the Govt. approving the much needed schemes & policies for promotion of the Domestic Manufacturing of Medical Devices in the country. In our recent interactions with government, we have represented in detail what all needs to be done to make India self-reliant in medical devices and hope the announcements will address the issues we raised”, said Mr. Rajiv Nath, AiMED.