AiMeD Urges Centre to Raise Medical Device Import Tariffs to 10–15% in Union Budget 2026–27
The association further proposed updates to labelling norms to mandate disclosure of domestic content percentages and incentives for suppliers achieving more than 50% local value addition.
The Association of Indian Medical Device Industry (AiMeD) has urged the Central Government to raise import tariffs on medical devices to 10–15% from the current 7.5% in the upcoming Union Budget 2026–27, citing the need to strengthen domestic manufacturing and reduce import dependence.
In its budget recommendations, AiMeD has also sought the adoption of quality-based criteria in public procurement, with a preference for Indian Certification for Medical Devices (ICMED) over foreign approvals. The association further proposed updates to labelling norms to mandate disclosure of domestic content percentages and incentives for suppliers achieving more than 50% local value addition.
Rajiv Nath, forum coordinator at AiMeD, said that 2025 marked steady progress for India’s medical devices sector, supported by sustained policy dialogue and greater recognition of MedTech as a strategic segment of healthcare delivery. “As we step into 2026, the focus must shift decisively towards consistent policy execution and deeper industry-government collaboration,” he said.
Nath highlighted that raising tariffs to 10–15%, revising procurement norms, and improving labelling transparency were key measures required to support domestic manufacturers, particularly micro, small, and medium enterprises (MSMEs). He added that these steps could help align India’s manufacturing capability with long-term competitiveness.
During 2025, discussions around the Medical Devices Policy 2023 intensified, with industry and government engaging on issues such as regulatory predictability, domestic capacity building, and reducing reliance on imports in critical device segments. According to AiMeD, these engagements laid the groundwork for a more balanced operating environment that prioritises quality, affordability, and trust.
AiMeD has previously made similar representations to the government. In its pre-Budget memorandum for 2025, the association had requested the withdrawal of import duty reductions on medical devices, arguing that lower duties had not translated into lower prices for patients. It stated that consumers continue to pay significantly higher prices compared to landed import costs.
The association pointed out that India currently depends on imports for nearly 70% of its medical device requirements, despite having the capacity to meet domestic demand. AiMeD noted that Indian manufacturers often find importing more viable due to tax structures and credits available under the GST regime, including input tax credits that were not accessible in the pre-GST era.
According to the industry body, reasonable tariff protection—similar to measures adopted in the mobile phone manufacturing sector—could help reverse this trend and support domestic production.
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