The Hindu Business Line : Call to set up SEZ for making medical equipment

Existing scenario
About 95 per cent of hospital equipment is imported
Current market for medical equipment is estimated at about Rs 9,000 crore
Lack of sops or tax holidays a deterrent to companies who wish to set up manufacturing units in India

Chennai , Aug. 3

Medical equipment manufacturers feel there is a need to encourage local manufacturing of such equipment. One way to achieve this would be to set up a special economic zone (SEZ) for medical equipment manufacturing, according to industry representatives.

An SEZ will help reduce dependence of imports, the representatives said at a press conference here.

"No progress has been achieved over the last 20 years in indigenisation of medical technology initiatives in India," said Dr G.S.K. Velu, Managing Director, Trivitron Group of Companies, who recently met Government authorities to discuss this issue.

About 95 per cent of hospital equipment is imported from countries such as the US, Germany and Japan. India imported about Rs 7,700 crore ($1.7 billion) worth of equipment last year, said Dr Velu. The current market for medical equipment is estimated at about Rs 9,000 crore ($2 billion).

Mr Velu said the lack of sops or tax holidays was a deterrent to companies that wished to set up manufacturing units in India. He also mentioned the anomaly in import duty tax that made components costlier than finished products. This, he said, forced companies to import equipment as opposed to components.

Manufacturing equipment in India could cut costs by up to 50 per cent and result in wider reach of facilities and cheaper cost of medical testing, he said.

Exhibition

As part of creating awareness about the medical equipment available, Trivitron and others are sponsoring an exhibition. The three-day exhibition of medical equipment and hospital needs called "Medicall" will be held in Chennai starting from Friday tomorrow. This will conclude with a day-long seminar addressing the management aspects of medical clinics like finance for hospitals, medical equipment selection. About 80 companies will showcase medical devices and technology including trolleys, furniture, operation theatre equipment and medical software.

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