New Delhi | March 2026 India’s medical device industry has urged the government to provide urgent financial relief measures, including temporary duty rebates and faster tax refunds, as escalating geopolitical tensions in West Asia continue to drive up input costs and disrupt supply chains.

Industry body Association of Indian Medical Device Industry (AiMeD) has formally approached the government, highlighting that the ongoing conflict and disruptions in key trade routes such as the Strait of Hormuz have led to unprecedented increases in raw material and energy costs.

Manufacturers report that prices of critical inputs such as plastics used in syringes, catheters, and other disposables have surged by up to 50%, while packaging materials have seen increases of over 20%, significantly impacting production economics.

The sector has proposed a temporary three-month customs duty rebate, including 2.5% on raw materials and 5% on components, to help offset rising costs and maintain supply stability.

In addition to cost pressures, manufacturers are also grappling with structural challenges such as an inverted duty structure, where they pay 18% GST on inputs but can charge only 5% on finished devices, leading to working capital stress and accumulation of input tax credits.

The situation is further compounded by rising energy costs, with gas prices used in manufacturing processes reportedly doubling, and logistics disruptions leading to longer lead times and increased freight expenses.

Industry leaders warn that while short-term disruptions have been managed through buffer stocks, prolonged instability could lead to production slowdowns, supply constraints, and potential increases in healthcare costs, particularly for high-volume consumables such as syringes, gloves, and IV sets.

The sector has also called for expedited GST refunds, rationalisation of logistics costs, and policy support to ensure operational continuity and protect domestic manufacturing competitiveness.

Experts note that India’s medical device industry, which supports over 5 lakh jobs and plays a critical role in healthcare delivery, remains highly sensitive to global supply chain disruptions due to its reliance on imported raw materials.

As geopolitical uncertainties persist, timely government intervention is expected to be crucial in stabilizing the sector, safeguarding supply chains, and preventing cost pressures from being passed on to patients and healthcare providers.