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Duty exemptions in Union budget to boost 16% growth for medical electronics in India

Duty exemptions proposed in the recent central government budget are expected to give a boost to the medical electronics market in India. According to Frost & Sullivan the medical electronics markets in India is estimated to grow to $11.7 billion by 2017 with a CAGR of 16 per cent.

Though the indigenous manufacturing of medical electronics in India is far lacking behind, the recent central government’s push in the form of tax and duty exemptions is expected to boost local manufacturing of medical electronics in the country. According to the new investment policy proposed in the budge any company investing Rs. 100 crore or more in plant and machinery during the period will be entitled to deduct an investment allowance of 15 per cent of the investment.

 Last year in 2013, the medical electronics market in India was valued at  $6.5 billion, and with the central government’s aid the markets for this segment is likely to grow at a compound annual growth rate of 16 per cent to reach US $11.7 by 2017.

However, According to Niju V, director,automation & electronics practices, Frost & Sullivan, “In India, medical devices need to be made for Indian operating conditions. Focused policy on medical devices factoring in all industry stakeholders including technology developers, manufacturers, healthcare providers, insurance providers, and patient groups can give a big boost to the sector.” 

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3/13/2014 1:09:02 PM