Medtech Sector Demands Standard GST Rates and Enhanced Export Incentives in Budget 2025

Key Demands from the Medtech Sector
The medtech sector has made pivotal demands in anticipation of Budget 2025, focusing on GST on medicines and encouraging the government to consider a standardized GST rate of 12 percent across all medical devices. According to Himanshu Baid, managing director of Poly Medicure, this adjustment would streamline the tax structure and ease business operations.
Export Incentives and Market Affordability
In addition, the industry is urging the enhancement of export incentives under the RoDTEP scheme from 0.6-0.9 percent to 2-2.5 percent. This incentive aims to refund varying duties and taxes on exported products, contributing significantly to the global reach of Indian medical devices. Another important demand includes monitoring the maximum retail prices of imported devices, ensuring affordability for Indian consumers.
- 12 percent GST rate for all medical devices
- Enhanced export incentives under RoDTEP scheme
- Affordability measures for imported medical devices
Long-term Sustainability and Growth
The Indian medtech market, valued at $12 billion, relies heavily on imports, with $8.2 billion worth of imported devices in FY24. To support local production, associations like AIMED and MTaI are advocating for a 5-15 percent Customs duty on imports along with the extension of the production-linked incentive (PLI) scheme by two to three more years. These initiatives aim to reduce import dependency and foster sustainable growth for domestic manufacturers.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.