Dr. Minnie Bodhanwala

CEO, Wadia Hospital

”As we look ahead to the Union Budget for 2025, the need for a stronger focus on healthcare infrastructure and accessibility is more critical than ever. Despite some increase in healthcare spending in recent years, it remains far below global averages, highlighting a significant gap that needs to be addressed. The budget should focus on increasing funding for essential healthcare services, ensuring their availability across both urban and rural areas, and investing in a sustainable healthcare workforce.

There is a clear need to expand healthcare infrastructure, particularly in rural and underserved regions. The construction of new hospitals, clinics, and diagnostic centers should be prioritized, with special attention given to reducing disparities in access to healthcare.

Incentives for setting up healthcare facilities in these areas could help bridge the rural-urban divide and encourage private sector participation.

Alongside infrastructure, the rising burden of non-communicable diseases (NCDs), such as diabetes, cardiovascular conditions, and cancers, requires urgent attention. The government should allocate funds to enhance public health campaigns focused on prevention, early detection, and management of these diseases. Health education initiatives, lifestyle modification programs, and screenings should be integrated into the healthcare strategy to curb the growing incidence of NCDs.

To transform India into a global healthcare hub, the budget must also prioritize investment in medical research and innovation. Increasing tax incentives for healthcare R&D, particularly in biotechnology, pharmaceuticals, and medical devices, can drive the country’s competitive edge in healthcare technology. Collaboration between public and private sectors to advance healthcare innovations will be key to achieving this goal.

Supporting the expansion of medical tourism should also be a priority. By improving the quality of healthcare services and streamlining visa and regulatory processes for international patients, India can attract more medical tourists. Additionally, expanding access to health insurance, particularly for lower-income groups, will be essential for making healthcare more affordable and accessible.

Improving maternal and child health must remain a focal point, with the government allocating funds for nutrition, clean drinking water, and sanitation programs that address the health needs of women and children. More targeted programs to address the healthcare requirements of the elderly and disabled should also be included in the budget.

A key challenge in the healthcare sector is the high cost of medical equipment and consumables, much of which is imported. Strengthening domestic manufacturing capabilities for medical devices and pharmaceuticals is crucial for reducing costs. Supporting the “Made in India” initiative will not only lower healthcare costs but also boost job creation and reduce dependency on foreign imports.

Another pressing issue is the shortage of skilled healthcare professionals. To address this, the government should invest in expanding training facilities for medical and paramedical staff, offering incentives to work in underserved areas. Expanding scholarships and increasing the number of training centers will help address the shortage of qualified personnel.

Improving health surveillance and preparedness for public health emergencies, such as pandemics and natural disasters, should also be a key component of the budget.

Investments in surveillance systems and disaster response mechanisms will reduce the burden on the healthcare system during times of crisis.

Finally, addressing the financial burden of healthcare is essential. Rationalizing taxes on medical products and services, such as consumables and equipment, will help reduce the cost of healthcare. Lowering GST on medical items and offering subsidies for utilities like power and water for healthcare providers could make healthcare more affordable for the masses.

In conclusion, the 2025 healthcare budget should focus on increasing investment in healthcare infrastructure, improving access to care, promoting research and innovation, and addressing the needs of vulnerable populations. By prioritizing these areas, the government can ensure that India’s healthcare system becomes more equitable, affordable, and effective for all.”

 

Gaurav Agarwal

Managing Director, IITPL Innovation Imaging

Technologies Pvt. Ltd

”Ban of import of pre-owned / refurbished medical devices in India

• A Complete ban
• Increasing BCD on refurbished equipment by 200%

Making PPO legally binding

• Request for an advisory from Central Ministry to all State Government Principal Health Secretaries to remove mandatory requirement of USFDA/CE approvals in all State Public Procurement
• Eliminating discrimination based on regulatory body approvals, such as pricing disparities between products approved by the US FDA and those approved by India’s FDA. Separate Medical Device Ministry

Revised PLI Scheme for MedTech: Boosting Domestic Manufacturing and Innovation

• Expansion of Eligible Product Categories: Broader inclusion of diverse medical devices to cater to both domestic and export
• Enhanced Incentives for High-Value MedTech Manufacturing: Encourages the production of advanced medical devices to strengthen self-reliance and reduce import dependency.
• Focus on Innovation and R&D: Supports indigenous techno- logical advancements to create globally competitive MedTech solutions.

Ensuring Timely Payments to Suppliers: Addressing Delays in Government Hospital Procurement

• Streamlined Payment Mechanisms: Implement automated systems to process payments efficiently and minimize bureaucratic
• Defined Payment Timelines: Mandate strict adherence to predefined timelines for supplier payments, with penalties for delays.
• Escrow Accounts or Revolving Funds: Establish dedicated funds to ensure uninterrupted payments to suppliers, regardless of internal budget
• Monitoring and Accountability: Regular audits and tracking mechanisms to identify and address payment bottlenecks within government
• Support for MSME Suppliers: Prioritize payments to smaller suppliers to avoid liquidity crises, fostering a more robust and inclusive supply

Income Tax benefit for CAPEX and R&D investments in medical devices

1. Incentivizing Manufacturers:

• Design Awards and Tax Benefits: Industrial design is crucial for the ease of acceptance and usability of medical electronics. Recognizing and rewarding excellence in design, as seen with prestigious awards like the Red Dot, Good Design, and India Design, can significantly enhance product acceptance and market Establish a design award offering a 2-3% rebate in tax / customs duty or other type of tax benefits. Award additional points or benefits in public procurement to incentivize innovative design. These awards set benchmarks for quality and innovation, encouraging manufacturers to prioritize design excellence.
• Indigenization Incentives: To bolster the domestic manufacturing of medical electronics under the Make in India initiative, it is essential to provide substantial incentives for companies achieving indigenization percentages above 26%. These incentives should include tax benefits such as rebates or reductions in corporate tax rates, and exemptions on customs duties for imported raw materials and components. Additionally, subsidies and grants should be offered to support local manufacturing infrastructure and workforce Public procurement preferences should award additional points to companies meeting indigenization thresholds, ensuring government support for domestic products. Enhanced R&D incentives and access to state-of-the-art facilities at subsidized rates will further encourage local innovation. Recognizing companies through awards for significant indigenization efforts will promote best practices and highlight success stories. A robust assessment and certification process, in collaboration with industry bodies, will ensure transparency, while a comprehensive monitoring and evaluation framework will track progress and inform policy adjustments. These measures can significantly enhance the competitiveness and self-reliance of India’s medical electronics industry.
• Export Incentives: Offer substantial incentives for exports, as the current export levels in medical electronics are Develop better incentive programs beyond the current Remission of Duties and Taxes on Export Products (RoDTEP) scheme.

Expand PMP Scope

Expand the scope of the PMP to cover more components and sub-assemblies, ensuring a gradual increase in domestic manufacturing capabilities. Monitor and adjust the PMP based on industry feedback and technological advancements to remain relevant and effective.

Reduction in GST Rates

• The GST rate on medical devices ranges between 12% and 18%, which significantly increases the cost for end-users.
• Recommendation: Reduce GST on all medical devices to a uniform rate of 5% to make healthcare more affordable and accessible.

Reversal of Inverted Duty Structure on Devices like Stents

• The inverted duty structure, where import duty on finished products like stents is lower than on raw materials, increases costs for domestic
• Import duty reduction on raw material for Make in India devices. Currently we are paying 12% plus duty on all the raw materials.
• Recommendation: Reverse the inverted duty structure on critical medical devices such as stents to encourage domestic manufacturing and reduce reliance on imports

Trade Margin Capping by monitoring MRP at Import landed price

Enhancing India’s Healthcare Budget: Bridging Gaps and Meeting Industry Needs

• India’s current public healthcare spending is approximately 1.6–1.8% of its GDP. This allocation is in- sufficient to address the country’s healthcare challenges effectively.
• Recommendation: We recommend increasing this spending to at least 5% of GDP”

 

Rajiv Nath Managing Director,

HMD

”Monitoring of maximum retail price (MRP) of imported medical devices into India has been demanded by medical device manufacturers to provide truly affordable rates to the Indian consumers. In its Pre-budget memorandum to the Finance Ministry, Association of Indian Medical Device Industry (AiMeD) has highlighted that reduction of import duty on devices is an effort of the government that going in vain since the consumers/patients are paying 10-30 times of the import landed price of the devices. There is no gain to the consumers from NIL duty as affordability is linked to MRP labelled on product as that is what has been charged to them. Thus, the device manufactures have asked withdrawal of Concessional Duty Notification that reduce Duty to 0-7.5% and seek 5% – 15% duty on imports of medical devices.
“As assured by you in your earlier Budget speech there is a need to remove NIL Duty Exemption notifications (and we recommend even Concessional Duty Exemption notification that reduces duty to 7.5% ) which have made it non-viable to manufacture and motivated many manufacturers to become importing traders or pseudo manufacturers” said Mr. Rajiv Nath, Forum Coordinator, AiMeD in a letter to the Finance Minister Mrs. Nirmala Sitharaman recently.
The current duty structure is also incongruent to the “Make in India” approach of the government. Nominal tariff protection is needed for medical devices that are being manufactured in India as a predictable tariff policy so if capacity is added by a domestic manufacturer, there’s assured nominal protection. To promote domestic medical device industry that will also enable exports and subsequently reduce India’s heavy reliance on import, the current basic import tariff of 0-7.5% in not enough. The imports are consistently above Rs 61,000 crore for the past three consecutive years and even jumped 13% in the last fiscal (2023-2024) to reach Rs 69,000 crore, AiMeD said.

AiMeD has emphasized that Indian manufactures have the ability to cater to 1.4 billion people, and can have enough domestic production but sadly there is 70% import dependence in field of medical devices. This dependence can be completely avoided if there is some reasonable protection for the domestic industry as provided for Mobile Phone Industry. The current Basic Import Tariff of 0-7.5% required to be hiked to

5% – 15% for medical device and on their components to be at least 5%. The tariff for components needs to 7.5% for the next two years as a PMP Make in India Enabler. Concessional Duty on raw material (including packaging materials of sterile disposables) may be retained at 2.5% for now, for next three years.

The current scenario is against Indian manufacturers in every way. After GST, imported devices become cheaper by 11% and the Indian manufacturers have been challenged to compete with foreign imports in government tenders.

Indian manufacturers are forced to become importers as it is cheaper and more convenient to import. Im- porters avail GST input credit which they were not availing in the pre-GST period. There is 6% CVD and 4% SAD now but no such credit was earlier available to a trader. Department of Pharmaceuticals has stated that indigenous manufacturers have a disability of 12-15% on account of various factors like lack of adequate infrastructure, high cost of finance, inadequate availability of power, limited design capabilities, low focus on R&D and skill development, etc. and have supported AiMeD request to Finance Ministry for Recall of NIL / Concessional Duty Notification for the Medical Devices that are being made in India and where adequate capacity exists.

There is no mechanism to address these disabilities in the manufacturing of medical devices in India as compared to other major economies. Department of Biotechnology, NITI Aayog and the office of Principal Scientific Advisor to the Prime Minister have been working to create an ecosystem for nurturing startups and incubators. But once they create a commercial product and have to graduate to MSME entrepreneurs, the real challenge comes for these startups to survive and cope with the 12-15% disabilities as well as being stonewalled by buyers who do not seek lower costs but seek higher MRP based Trade Margin chargeable to their Patients/Clients.”

 

Himanshu Baid

Managing Director, Poly Medicure

”India’s med-tech sector is poised to redefine global healthcare innovation, driven by supportive policies and industry ambition. The upcoming budget provides a vital opportunity to further strengthen this sector through critical reforms. The government can consider standardising the GST rate of 12% across all medical devices as it would simplify the tax structure, ensuring consistency and ease of doing business. Enhancing export incentives under RoDTEP to 2-2.3%—from the current range of 0.6-0.9%—will bolster the global competitiveness of Indian-made medical devices, enabling manufacturers to expand their reach in international markets.

Equally important is the need to implement a policy that curtails the reuse of single-use medical devices, ensuring patient safety, minimizing healthcare-associated risks, and maintaining high-quality standards across the industry.

Additionally, extending the Production Linked Incentive (PLI) scheme by 2-3 years would support local manufacturers in scaling production, reducing import dependence, and achieving long-term growth and sustainability. An increase in the healthcare budget allocation to 2.3-3% of GDP is will benefit both innovation and access to care across the crucial for strengthening healthcare infrastructure, which country.

These measures, together, will reinforce India’s med-tech ecosystem, positioning it as a hub for innovation and a trusted partner in global healthcare. We remain committed to collaborating with the government to achieve these shared objectives and unlock the full potential of this dynamic industry.”

 

Sunil Khurana

CEO & Managing Director BPL Medical Technologies Pvt. Ltd

”Raise of custom (import) duty from current level of 3-7.3% to 13-20% Key to protect domestic electronic medical devices industry , till India ‘s Semiconductor industry attains some momentum to support with locally produced chips / electronics components.

Homecare @ home (post discharge from hospitals) to be covered in Insurance Many patients stay long in hospital as insurance coverage is till admitted in the hospital. This coverage will release much needed beds for serious patients and reduce burden on insurance as Homecare with nurse per day will limit to 3-5 K per day basis Vs 20-30 K per day in hospitals. Even ICU care at home is the approach we must take.

Export incentive in line with global trends for Indian companies to be competitive.

GST @5% for locally produced products having > 30% local content , Vs 12% for imported or simply assembled without much value add.”

 

Anjan Bose

Founding Secretary General of NATHEALTH

Former President of Philips Healthcare & Consumer Lifestyle, India & South Asia.

Advisor/Mentor/Guide

”Artificial intelligence: AI will start encompassing everything. GOI’s focus on AI is also high, this Budget needs to kick-start having some considerations/ prescription for AI based Technology & Processes.

Specific & focused support to enable, enhance, accelerate the all -important Startup domain including tax reliefs for investments in Healthcare startups.

Increasing the budgetary allocation to over 2.5% GDP, lowering GST input slabs for healthcare items at or below standard 5%, ensuring viable public administered insurance reimbursement rates, expanding physical and digital infrastructure for both curative and preventive health while lowering duties & GST in cancer therapy treatments to make cancer care more accessible in India.”

 

Pavan Choudary CEO & MD,

Vygon India

”The high customs duty regime significantly increases the cost of medical devices, which undermines the government’s efforts to make affordable healthcare accessible to the masses through initiatives like Ayushman Bharat (PMJAY ).

Hence, we urge the government to consider reducing customs duty rates for products where domestic alternatives are not yet readily available.”

 

VIVEK DESAI

FOUNDER & MD, HOSMAC

”Building an Inclusive Healthcare Ecosystem

Ahead of the 2025 Budget, it is essential to emphasize the critical need for enhanced investments in India’s healthcare infrastructure. Health is a fundamental necessity, and our ability to deliver equitable and quality care is pivotal for national progress. To meet global standards of three hospital beds per 1,000 population, India must significantly increase its budgetary allocation towards healthcare infrastructure. While the government’s efforts in developing world-class AIIMS facilities are commendable, similar attention must be directed towards state-led initiatives, particularly in the development and upgrading of district-level hospitals, which form the backbone of our healthcare system. The quality of these “bed assets” must be prioritized alongside their quantity.

Establishing a Healthcare Capex Fund

Building healthcare infrastructure is an expensive undertaking with costs often exceeding ₹1 crore per bed. However, returns on such investments are not commensurate when compared to other industries, creating challenges for private players to develop greenfield projects. To ad- dress this gap, the government should establish an earmarked Healthcare Capital Expenditure (Capex) Fund. This fund could provide loans with flexible repayment terms, such as extended tenures, lower interest rates, ballooning of interest payments based on capacity utilization, and longer moratorium periods. These measures would incentivize private sector participation, ensuring sustainable investments in healthcare infrastructure.

Rationalizing GST in Healthcare

Another critical area requiring attention is the financial burden posed by high customs duties on life-saving and high-cost diagnostic equipment. Lowering these duties would facilitate access to advanced medical technology, enabling better care delivery. Additionally, the Goods and Services Tax (GST) structure imposes a substantial burden on hospitals, as they cannot claim input tax credits due to the GST-exempt nature of healthcare services. Rationalizing GST on capex items specific to healthcare would provide much-needed relief. Alternatively, bringing healthcare services under the GST regime, even at a minimal 5% slab, would allow hospitals to offset GST expenses and reduce the financial strain on infrastructure development.

Addressing the human capital shortage

India also faces a significant shortfall in human capital within the healthcare sector, including doctors (especially super-specialists), nurses, paramedics, and technicians. Addressing this gap requires the creation of a robust educational infrastructure. The government could encourage private players to establish healthcare training institutions by offering tax holidays, subsidized loans, reduced electricity tariffs, and lower property taxes. These initiatives would ensure a steady pipeline of skilled professionals to support India’s growing healthcare needs.

Streamlining health insurance schemes

While the Ayushman Bharat scheme has established the government’s role as a “payor”, integrating other insurance schemes such as ESIC, ECHS for armed forces, CGHS, and various state-level pro- grams into a unified framework could enhance efficiency and expand coverage. Consolidating these schemes under a single umbrella would also allow the government to optimize resources, ensuring premiums for the most vulnerable sections of society. Special provisions, such as additional benefits for ECHS beneficiaries, could be seamlessly incorporated into this framework.

Tax incentives for private Mediclaim insurance will increase penetration particularly in the middle class. This coupled with improvement in claim processing can help hospitals improve their financial health.”

 

Chandra Ganjoo

Group Chief Executive Officer,

Trivitron Healthcare

”The medical device industry in India has identified some of the major expectations for the 2023 Union Budget, where it can look forward to overcoming the challenges and unlocking the growth potential. There should be a simplified regulatory framework to eliminate bureaucratic hurdles and clarify things, including a dedicated authority for medical devices distinct from pharmaceuticals. The inverted duty structure needs to be addressed to promote domestic manufacturing, whereby raw materials are charged higher customs duties than the finished products. Increasing R&D incentives and tax benefits, are necessary to encourage innovation and competitiveness. Another key element is stricter enforcement of “Make in India” policies on public procurement, enhanced support for local manufacturers through reduced GST rates, and infrastructural development, such as medical device parks. More importantly, the domestic standards must be aligned with global benchmarks, thereby increasing exports and simplifying import-export procedures for a smooth supply chain. Investment in skill development and training programs and increased healthcare spending over 2.3% of GDP will create demand and strengthen the sector. If the budget addresses these expectations, it can position India as a global hub for medical devices and drive the growth of the healthcare ecosystem.”

 

JASDEEP SINGH

GROUP CHIEF EXECUTIVE OFFICER, CARE HOSPITALS

“The Union Budget 2025-26 is a key opportunity to strengthen India’s healthcare system by making it more affordable, accessible, and Innovative. At CARE Hospitals, we hope to see a higher allocation for public healthcare spending to close gaps in infrastructure, especially in rural and underserved areas. Expanding Ayushman Bharat to cover outpatient care and diagnostics, along with promoting preventive health programs, can help address the growing challenges of both communicable and non-communicable diseases while ensuring quality healthcare for everyone. Cancer is a major health concern in our country, putting a heavy financial and emotional strain on people. To make cancer more affordable, reducing customs duties and GST on essential equipment like LINAC’s would im- prove access to advanced treatment in underserved areas. It’s also important to revise reimbursement rates under government schemes like CGHS, PMIAY, and ECHS by linking them to inflation, as many rates have stayed the same for nearly a decade.

To position india as a global healthcare hub, creating a dedicated fund to promote high quality healthcare and medical tourism is essential. Such measures con not only enhance our healthcare system but also boost India’s stature globally. The government should  prioritize funding research and development in the Med- Tech sector, incentivizing innovation, and transitioning to quality-linked procurement standards for value-based care. Encouraging digital health solutions, medical research, and public-private partnerships can help india stay ahead in health- care innovation. Providing tax benefits and supportive policies for healthcare providers will also be crucial in meeting new health challenges. At CARE Hospitals, we are committed to patient-focused care and hope this budget will empower. healthcare providers to reduce gaps, improve outcomes, and make healthcare a key driver of national growth.”

 

Dr. Shafiq A M

Co-Founder and CEO, Trilife Hospital

”He upcoming budget is a great opportunity to fix some of the issues that our healthcare system is facing. Shortage of doctors, especially specialists, rising costs for cancer treatment, and not enough hospitals for our growing population are some of them. To help people with cancer, we need more affordable treatment options. The government should consider removal of taxes on machines used for cancer radiation treatment. This will make it easier to set up cancer treatment centres in underserved regions. We also need more doctors. The government should consider in- creasing the number of seats and providing government led loans at lower rates of interest for medical students in both undergraduate (MBBS) and postgraduate medical programs.

Preventive healthcare plays a key role in reducing lifestyle diseases. The government should consider additional tax breaks for health checkups to encourage them to stay healthy. The government should also consider increasing the tax deduction for health insurance so more people can afford good coverage. Finally, to make healthcare more affordable, the government should consider lowering taxes on imported life-saving equipment and encourage companies to manufacture this equipment in India. This will help hospitals provide better care at lower costs.”

 

Mr. D. S. Negi

CEO, Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC)

”Budget 2025 is just around the corner, the cancer care sector has the potential to achieve significant reforms that ensure accessibility, affordability, and quality for all.

A key highlight of the previous Budget for the sector was inclusion of the HPV vaccine that protects against cervical cancer to protect future generations from one of the most preventable cancers. Including these vaccines in the National Immunization Program can ensure every child receives them automatically, much like the polio vaccine. Wit door-to-door services and widespread access, this initiative could drastically reduce the incidence of cervical cancer. India has also made remarkable advancements with the launch of its first indigenously developed CAR T-cell therapy for cancer under the ‘Make in India’ initiative, hailed as a major breakthrough. Similarly, the first telesurgery in cancer care, performed by the Rajiv Gandhi Cancer Institute & Research Centre, has set a new benchmark in remote oncology treatment. To build on these successes, the budget must prioritize digital health solutions such as telesurgery, electronic health records (EHRs), and AI-driven diagnostic tools to improve healthcare delivery. There should also be a strong focus on enhancing nationwide cancer screening programs and providing access to cutting-edge treatments like immunotherapy and personalized medicine. Increasing healthcare spending to 2.5% of GDP, along with robust policy measures, is essential for creating a resilient healthcare system. Comprehensive support for cancer survivors—through rehabilitation, mental health services, and survivorship programs—will further improve their quality of life. High import duties on medical equipment, reaching up to 36%, significantly increase treatment costs, particularly for mid-sized operators and smaller cities. The Budget should provide relief from these duties to enable more hospitals to acquire high-end equipment, making treatments more affordable and accessible.

Supporting primary healthcare centres is essential to ensure quality care and allow tertiary hospitals to focus on specialized treatments. Equipping tertiary government hospitals with advanced infrastructure is crucial to address the growing cancer burden, along with targeted policies for various cancer types, including rare ones.

By addressing these priorities, Budget 2025 can lead the way to a future where cancer care is accessible, innovative, and largely preventable.”

 

Vikram Vuppala

Founder and CEO, NephroPlus

”As the government prepares for the 2023 Budget, we hope for a significant increase in funding to expand dialysis services under the PMNDP, addressing the urgent need for dialysis care across the country. Only 13% of patients who require dialysis get access currently. With Lakhs of new patients requiring regular dialysis, increasing dialysis care outlay and thereby increasing access to life sustaining care is crucial.

Additionally, to position India as a global leader in healthcare in line with Vishwaguru philosophy, we urge the government to introduce tax incentives for healthcare services exports and provide robust support for R&D in innovative healthcare services. This will not only benefit millions of patients but also boost India’s stature in the global healthcare ecosystem.”

 

Dr Raj Nagarkar,

Managing Director & Chief of Surgical Oncology & Robotic Services, HCG Manavata Cancer Centre (HCGMCC)

“I urge the Government to allocate increased funding for public healthcare infrastructure and offer tax incentives, especially for hospitals that are part of Ayushman Bharat Yojana. Additionally, subsidized training programs for surgeons and public-private partnerships in medical innovation can ensure advanced treatments reach more patients. Awareness campaigns for early detection and prevention of cancer should also be prioritized. These measures will advance healthcare accessibility, improve outcomes and align with India’s goal of being a global leader in medical innovation.”

 

Kishore Khanna
Managing Director, ROMSONS GROUP

”The Manufacturer of medical devices, such as extension line, scalp vein set, catheter lV cannula, and
lnstruments and appliances used in Medical Surgical, Dental etc. falling under headings 9018,9019,
9020, 9021 or 9A22. Benefit of SI. No. 564 of Notification No. 50i20’17-Cus. Provides exemption on
import of duty to Raw materials, parts or accessories for use in manufacture of goods for this purpose.

Which are classifiable under 90183090 attracts IGST @ 12ok under schedule -ll of IGST Notification
No 1/2017 which reads a follows:-
Schedule-ll 218. | 9018 llnstruments and appliances used in medical, surgical, dental
I lor veterinary sciences, including scintigraphic apparatus,
other electro-medical apparatus and sight-testing instruments. Whereas the classification of parts & accessories is under chapter 9033 attracts IGST @ 18% under

Schedule -lll of IGST Notification No 1/2017 as amended which reads as follows:-

Schedule -lll 423. 9033 Parts and accessories (not specified or included elsewhere
in this Chapter) for machines, appliances, instruments or
apparatus of Chapter 90. This classification of parts & accessories for machines, appliances, instruments or apparatus of

Chapter 90 attract rate IGST @18%, badly effecting the Business of this Trade & also resulting in
lnverted rate of suppty of these Companies.

Therefore it is requested that rate of IGST of the said above part under 9033 may be brought down to
12% in the next budget for ease of doing business in lndia.”

 

Mr. Jatin Mahajan,

Secretary, Association of Diagnostics Manufacturers of India (ADMI)

”The past two years have been relatively inconsequential for the MedTech industry, which has been mostly ignored in the Union Budgets. We expect the 2025 Union Budget to examine the industry’s woes and herald strategic reforms to bolster the industry, which is the cornerstone for driving healthcare for all.

• Creating a separate Regulatory Body for Medical Devices – This would result in dedicated focus and a better understanding of our needs and enable faster product approvals.
• Impetus to Exports – To drive significant growth, activities, and initiatives under the Export Promotion Council for Medical Devices must be increased and fast-paced.

The current Remission of Duties and Taxes (RoDTEP) on Exported Products for medical devices ranges between 0.6 and 0.9 percent and increasing this will positively impact India’s export competitiveness.

• Incentives on Technology Transfer – To encourage high-end MedTech manufacturing, Technology transfer is the most potent strategy. The Government should provide incentives to promote its adoption, especially in areas where local manufacturing and innovation need a boost. The Government should offer tax deductions for expenditures on acquiring technology or IPR, a reduced tax rate for companies engaged in technology transfer, and low/zero interest loans for companies involved in tech transfer.
• Preventive Healthcare – We must prioritize preventive healthcare to drive a healthy nation that proactively seeks to identify and address health issues. Subsidized health checkups and increased allocation in the budget for preventive healthcare and diagnosis are the need of the hour.
• Quality Standardization and Harmonization – Enhancing the credibility of Indian standards for medical devices in line with international standards like USFDA, EU MDR/IVDR, CE, and UKCA standards will help build trust in Indian products, drive growth, and help penetrate global markets.
• Research & Development Tax Incentive – Companies should receive an additional tax deduction on their R&D expenditures. This will encourage innovation and incentivize domestic production.
• GST Rationalization – Given that healthcare impacts everyone, including the poorer and marginalized, The Government must implement a GST rate in the lowest slab.

We expect the Government to address various growth aspects, such as skill availability and development, strengthening of the healthcare infrastructure, and creation of diagnostic hubs in tier 2 and 3 cities, amongst others. With these steps, the Government can provide a growth impetus to this sunlight industry that has been providing yeoman service to the nation.”

 

Dev Tripathy,

Head of Finance, Philips Indian Subcontinent.

 

 

 

 

 

 

“Building a future where advanced healthcare is both accessible and affordable to the larger strata of society requires strategic initiatives, and we recognize the continued commitment of the Indian Government in transforming the Indian Healthcare landscape. Over the past years, initiatives aimed at enhancing access to quality healthcare, advancing medical infrastructure and promoting affordable Healthcare solutions have laid a strong foundation for the Nation’s well-being. The upcoming budget presents an opportunity to also address some of the challenges as India continues to play a pivotal role in the global Healthcare ecosystem. Reducing import duties and taxes on lifesaving devices and high-end medical equipment would be a transformative measure, significantly enhancing access to care and improving public health outcomes.” 

 

Dr. Himani Narula Khanna,                                                         

Director & Co- Founder, Continua Kids

 

 

 

 

 

 

”Despite the notable economic progress in India, the essential needs of individuals with disabilities remain largely unaddressed. Union Budget 2025 is a pivotal chance to address these shortcomings and address the mounting issues that people with ASD & their families face. As a healthcare professional with a high level of involvement with such questions, I strongly support policies developed based on the perception of practitioners familiar with all the nuances of autism treatment.
The budget needs to direct funding to several important areas: using mainstream education for assistive technology, creating specific healthcare services and rehabilitation services, providing social services for community integration and families, employment and training as well as incentives for employers, accessibility improvements in infrastructure through transportations as well as public spaces, R & D for universally designed technologies both in education and infrastructure, accommodation of legal protection against discrimination, and finally, social inclusion activities.
Although efforts like GST exemptions are appreciable, there is an immediate need to address issues related to reporting and add more rigidity in certification for Unique Disability Identification (UDID). Furthermore, performing routine, legal audits of CDCs and inclusive schools based on quality standards and medical supervision can help increase accountability and responsibility for the centers’ activities.
It is therefore incumbent on policymakers to take advantage of this great opportunity to create an environment that is easily accessible to every person with autism as well as economically inclusive, thereby building this great nation with every hand, not leaving behind those with spectrum disorders.”