|
AIMED seeks review of budget proposals to revive domestic manufacturing
|
|
Suja Nair Shiroadkar
March 26 , 2015
|
|
|
With a view to revive manufacturing eco-system and create conducive
environment for medical devices within the country, the medical devices
industry has sought for immediate review of the budget proposals. The
Association of Indian Medical Device Industry (AIMED) wants India to
have a 15 per cent price preferential policy over imports to offset 17
per cent subsidy being given by China to its manufacturers.
Likewise,
industry wants the government to withdraw earlier concessional duty
notifications and reverse the bias of inverted duty structure which is
among the main reason for giving price an advantage to imports and
manufacturing devices within India unviable. Rajiv Nath stated that
India’s US$ 5 billion medical device industry is over 70 per cent import
dependent with import dependency as high as 90 per cent in electronic
medical device category. The industry fears that the import bill, which
is presently at Rs. 22,000 crore, will cross Rs. 50,000 crore in next five years if no corrective action is taken.
“Should
passionate domestic manufacturers who have been brazing it out despite
adverse business environment be taken for further ride? Does government
want the remaining surviving domestic manufactures to turn importers?”
Nath questioned.
AIMED pointed out that there had been steady
decline in domestic manufacturing, wherein, not more than a dozen odd
domestic manufacturers have annual turnover of more than Rs. 50 crore. And that even less than five companies have turnover of more than Rs. 500 crore.
To
protect their interest in the overtly competitive market, domestic
manufacturers want the government to desperately roll-out positive and
pro-active policy measures like buy India policy to promote domestic
manufacturing. As they strongly believe that such policy would be in
sync with the policy pursued by many countries including China and US to
protect and boost their domestic industries.
On the latest FDI
policy of permitting 100 per cent FDI in brownfield projects, Nath
insisted that 100 per cent FDI in brownfield projects will either kill
the remaining domestic players or simply encourage MNCs to go for cherry
picking, thus making it essential to remove this clause. He further
stressed that 100 per cent FDI should be limited only to greenfield
projects with the condition that at least 60 per cent of Indian turnover
should be met by manufacturing here.
dvantage to imports and
manufacturing devices within India unviable. Rajiv Nath, forum
coordinator of AIMED insisted that only this would make Indian
manufactured goods competitive vis-à-vis imports while boosting domestic
manufacturing.
Nath stated that India’s US$ 5 billion medical
device industry is over 70 per cent import dependent with import
dependency as high as 90 per cent in electronic medical device category.
The industry fears that the import bill, which is presently at Rs. 22,000 crore, will cross Rs. 50,000 crore in next five years if no corrective action is taken.
“Should
passionate domestic manufacturers who have been brazing it out despite
adverse business environment be taken for further ride? Does government
want the remaining surviving domestic manufactures to turn importers?”
Nath questioned.
AIMED pointed out that there had been steady
decline in domestic manufacturing, wherein, not more than a dozen odd
domestic manufacturers have annual turnover of more than Rs. 50 crore. And that even less than five companies have turnover of more than Rs. 500 crore.
To
protect their interest in the overtly competitive market, domestic
manufacturers want the government to desperately roll-out positive and
pro-active policy measures like buy India policy to promote domestic
manufacturing. As they strongly believe that such policy would be in
sync with the policy pursued by many countries including China and US to
protect and boost their domestic industries.
On the latest FDI
policy of permitting 100 per cent FDI in brownfield projects, Nath
insisted that 100 per cent FDI in brownfield projects will either kill
the remaining domestic players or simply encourage MNCs to go for cherry
picking, thus making it essential to remove this clause. He further
stressed that 100 per cent FDI should be limited only to greenfield
projects with the condition that at least 60 per cent of Indian turnover
should be met by manufacturing here.
|
|
|
|
|
|
|
|
TOPICS
|
That foods might provide therapeutic benefits is clearly not a new concept. ...
|
|
|
|
|