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

Tuesday, 14 January 2025, 06:27

GST on medicines is a critical issue as the medtech sector highlights the need for standard rates and enhanced export incentives in Budget 2025. The medical devices industry is advocating for a uniform GST rate of 12 percent across all medical devices to simplify taxes and support business operations. Furthermore, they seek improvements to export incentives to enhance the competitiveness of Indian-made devices globally.
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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.


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