Medical Technology

Attributed to Dipu Bose, Head, Medical Technology, ZEISS India & Neighboring Markets

We are optimistic that the upcoming Union Budget will introduce transformative reforms to address critical gaps in India’s healthcare access and infrastructure. The focus should be on reducing tax burdens, expanding incentives for innovation, and significantly increasing public health spending to build a more inclusive and robust healthcare system that benefits every citizen, regardless of income or location.

Expanding Production Linked Incentive (PLI 2.0) schemes for medical devices is vital to fostering innovation and reducing import reliance. Complementing this with phased manufacturing programs (PMP) and globally-aligned incentives for biosimilars, novel therapies, and research and development (R&D) will strengthen India’s healthcare ecosystem and bolster global competitiveness.

Increasing public health spending to over 2.5% of GDP is essential to improving primary care and addressing decades of underinvestment in rural healthcare. Strategic investments in district hospitals, rural facilities, and telemedicine, particularly in Tier II/III cities, will bridge healthcare gaps, reduce financial strain on lower-income communities, and ensure equitable access for all.

India faces pressing challenges in delivering affordable and accessible healthcare, especially in underserved regions. Aligning GST rates for essential medical devices to the 5% slab and reducing cumulative taxes such as Basic Customs Duty (BCD), GST, and Health Cess will make critical medical devices more affordable for consumers, particularly in areas with limited domestic manufacturing capacity.

Simplifying import-export procedures by aligning with global best practices and reducing regulatory barriers can expedite device registration, classification, and clearances, enabling faster market entry for imported MedTech products. Implementing accelerated depreciation or tax incentives for hospitals, clinics, and diagnostic centers investing in ophthalmic equipment such as OCTs, surgical microscopes, fundus cameras, lasers, and perimeters can help offset the significant upfront costs associated with these critical investments.