Sapna Soni. Head-Government | Regulatory Affairs & PR, Mindray Medical India Pvt. Ltd. shares her expectations from budget 2023
The medical device industry is an industry which is directly linked to health and GDP of the country. Hence, the Union Budget 2023 shall balance incentivisation for encouraging imports of capital intensive and high technology medical devices and parallelly also strengthening the manufacturing and R&D base, by further easing State and Centre our regualtory process for global players.
Union Budget 2023-24 should review medical device sector and see as a no strings attached sector removing bottlenecks which come either as compliance or prolonged biased policy clearances.
To sum up:
- Incentivising third party manufacturing and R&D WITH Global Players | Attracting foreign investment
- Union budget 2023 to look into more micro policy schemes with economic variables in favour of foreign investor and India’s fiscal pocket.
- Incentivising, foreign investments in R&D with ‘Medical Device Technology Agreements’ with countries of leading high technology medical device manufacturing, whilst securing their IPRs and chalking out indigenous IPRs at the same time.
- Streamlining the manufacturing process, with single window clearances especially putting structure and discipline at the State levels, in time bound process to each step.
- Allowing Imports at low rates for access to Indian Public of High Technology medical devices
- The Budget 2023-24 should review the ground manufacturing realties and assess which high technology medical devices have a long gestation period in India. Reducing Customs Slab for such medical devices which are high technology and highly capital intensive – fixing price slabs for such technologies and bracketing custom duties which have sufficient gestation period to be manufactured in INDIA – higher the gestation period lower the customs.
- The budget may also incentivise the same, by economic-mixing principle of matching the local content values schedule [as issued by Department of Pharmaceuticals] with Custom slab rates, inspiring local manufacturers to reach out to foreign players and partner for same.
- Making medical technology accessible to the hinterland: the Union Budget 2023-23 may like to review some incentivising schemes for trickling down ‘high medical technology products’ especially diagnosis [medical labs] in addition to virtual healthcare to the hinterland and making healthcare more affordable and accessible.
Conclusion
The Union Budget of 2023-24 therefore, needs to outline healthcare supportive policies, simplified protocols, balancing the interest of importers and manufacturers and ensure accessible and affordable healthcare to all, with no strings attached to such a sector which is the lifeline of the homo sapiens on earth.