Union Budget 2021 –A Very Encouraging & Promising Budget Given the Pandemic
The Indian Medical Devices Industry has responded positively to Union Budget 2021.
According to Rajiv Nath who is Forum Coordinator of the Association of Indian Medical Device Industry (AiMeD), “Sometimes a crisis helps to come out with bolder decisions. Major fillip to Healthcare through PM Atmanirbhar Swastha Bharat Yojna, PLI Scheme, Health Infra allocation, focus on new & emerging diseases & health labs will surely address major gaps.
“Finally we may have something to help accelerate medical devices manufacturing as a Make in India enabler so that Indian National Healthcare security concerns are addressed – the inadequacy of which is being exposed in the crisis to address the coronavirus epidemic preparedness. We look forward to read the fine print.” he adds
Finance Minister Nirmala Sitharaman sharing a holistic vision of healthcare announced :
• 137% increase in health budget.
• PM Aatmanirbhar Swastha Bharat to be launched with an outlay of 64,180 Cr over 6 years. Huge intervention in India’s healthcare journey.
• Pneumococcal vaccine to be rolled out across the country to avert 50,000 child deaths annually. 35,000 crore for vaccine has been given and has committed to provide more
• Support for wellness centres
➢ Setting up health labs
➢ Critical care hospital blocs in districts
➢ Strengthening disease control surveillance & Strengthening of NCDC
➢ Onehealth centre for WHO regional office
“Rest we will be able to comment on after going through the fine prints on Custom duty on Medical Devices and withdrawal of many related exemptions that were being road blocks to Make in India as it was simply being cheaper and more convenient to import than manufacture.”
We had been hoping that this will be a Make in India push budget for an Atmanirbhar Bharat and though the FM has highlighted the need to support manufacturing sector to be part of global supply chain and need for it to grow on double digit sustained basis, we, The Indian Medical Device Industry are disappointed not to notice any changes in custom duty as done for other sectors and are very hopeful that the fine print of the Union Budget would have possibly acted upon our recommendations on a Predictable Tariff Policy for a Make in India push for Phased Manufacturing Plan for Components and Finished Medical Devices and allocations for Testing infrastructure as well as for MedTech Parks and Cluster developments. Supporting Policies are needed so that Indian Medical Devices Industry can make quality healthcare accessible and affordable for common masses, aim to place place India among the Top 5 Medical Devices manufacturing hubs worldwide and help end the 85% import dependence forced upon us and an ever increasing import bill of over Rs. 42000 Crore .” says Rajiv Nath, Forum Coordinator, Association of Indian Medical Device Industry (AiMeD)