Budget 2025: ADMI seeks strategic reforms & redressal of Medtech industry’s woes

Jatin Mahajan, Secretary, Association of Diagnostics Manufacturers of India (ADMI) calls for creation of a separate Regulatory Body for Medical Devices that would result in dedicated focus and a better understanding of our needs and enable faster product approvals.

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New Delhi: Sharing its expectations from the upcoming Budget 2025, the Association of Diagnostics Manufacturers of India (ADMI) has sought better incentives for the medical devices industry, simplification of tax regime, besides the creation of a separate regulatory mechanism.
“The past two years have been relatively inconsequential for the MedTech industry, which has been mostly ignored in the Union Budgets. We expect the 2025 Union Budget to examine the industry’s woes and herald strategic reforms to bolster the industry, which is the cornerstone for driving healthcare for all,” said Jatin Mahajan, Secretary, Association of Diagnostics Manufacturers of India (ADMI).
Mahajan calls for creation of a separate Regulatory Body for Medical Devices that would result in dedicated focus and a better understanding of our needs and enable faster product approvals. He also emphasizes impetus to exports to drive significant growth, activities, and initiatives under the Export Promotion Council for Medical Devices must be increased and fast-paced.
ADMA Secretary also calls for increasing the current Remission of Duties and Taxes (RoDTEP) on Exported Products for medical devices ranges between 0.6 and 0.9 percent to positively impact India’s export competitiveness. Among the other key demands listed by Mahajan are:
  • Incentives on Technology Transfer– To encourage high-end MedTech manufacturing, Technology transfer is the most potent strategy. The Government should provide incentives to promote its adoption, especially in areas where local manufacturing and innovation need a boost. The Government should offer tax deductions for expenditures on acquiring technology or IPR, a reduced tax rate for companies engaged in technology transfer, and low/zero interest loans for companies involved in tech transfer.
  • Preventive Healthcare – We must prioritize preventive healthcare to drive a healthy nation that proactively seeks to identify and address health issues. Subsidized health checkups and increased allocation in the budget for preventive healthcare and diagnosis are the need of the hour.
  • Quality Standardization and Harmonization – Enhancing the credibility of Indian standards for medical devices in line with international standards like USFDA, EU MDR/IVDR, CE, and UKCA standards will help build trust in Indian products, drive growth, and help penetrate global markets.
  • Research & Development Tax Incentive- Companies should receive an additional tax deduction on their R&D expenditures. This will encourage innovation and incentivize domestic production.
  • GST Rationalization– Given that healthcare impacts everyone, including the poorer and marginalized, The Government must implement a GST rate in the lowest slab.
“We expect the Government to address various growth aspects, such as skill availability and development, strengthening of the healthcare infrastructure, and creation of diagnostic hubs in tier 2 and 3 cities, amongst others. With these steps, the Government can provide a growth impetus to this sunlight industry that has been providing yeoman service to the nation,” concluded Mahajan.