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The Medical Technology Association of India (MTaI), the association of research-based medical technology companies with global experience in innovation and manufacturing in India, has said that the Central government should align the medtech customs and Goods and Services Tax (GST) structures with other priority sectors to support domestic manufacturing of medical devices.
Pavan Choudary, chairman, MTaI said, “The upcoming Union Budget presents a vital opportunity to address the high cumulative tax burden (BCD, Health Cess, Surcharge, and GST) on essential medical devices which reaches up to 30% in some segments. This is especially important for products where domestic manufacturing remains limited or absent."
Current tax levels directly inflate the cost of critical care - specifically in surgery, management of non communicable diseases, and diagnostics - pushing families into financial hardship. With rising input costs due to supply-chain disruptions, calibrated duty reductions are no longer a concession, but a public health imperative to ensure affordability, he said.
"Aligning MedTech Customs and GST structures with other priority sectors will expand healthcare access, improve patient outcomes, and foster a more resilient, globally competitive ecosystem,” he further added.
The Association has in the pre-budget memoranda submitted in the previous years, sought the Centre to consider reducing customs duty for products which don't have an alternative available in the domestic market.
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), said Chaudary last year.
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