The Association of Indian Medical Device Industry (AiMeD), the apex body representing domestic manufacturers, has intensified its long-standing campaign for higher import tariffs on medical devices by submitting a detailed pre-budget memorandum to the Government of India. In the letter addressed to the Finance Minister and the Department of Pharmaceuticals, AiMeD has recommended raising the basic customs duty (BCD) on most imported medical devices from the prevailing 5–7.5% to a range of 10–15% in the Union Budget for FY 2026–27.

AiMeD’s core argument centres on the persistent import dependence that continues to characterise the Indian medical device sector. Despite multiple government initiatives including the Production Linked Incentive (PLI) scheme, the Medical Devices Parks scheme, and various localisation mandates domestic production still accounts for only 20–30% of the market by value. High-value and high-technology devices (such as MRI machines, CT scanners, stents, implants, ventilators, and advanced surgical instruments) remain overwhelmingly imported, predominantly from China, the United States, Germany, and Japan.

The industry body argues that the current low import tariffs do not provide sufficient incentive for multinational companies to shift manufacturing to India or for domestic players to scale up capacity and invest in R&D. A moderate tariff increase to 10–15%, AiMeD contends, would create a more level playing field, encourage technology transfer, generate employment, and build long-term supply chain resilience particularly important in light of global disruptions experienced during the COVID-19 pandemic.

To protect patient access and affordability, AiMeD has proposed a differential tariff structure:

• Maintain zero or very low duty on life-saving, emergency-use, and critical-care devices (e.g., defibrillators, ventilators, ECMO machines, certain implants).
• Apply the proposed 10–15% range to non-critical, high-volume, and medium-technology products that can be manufactured competitively in India.
• Continue exemptions or concessional rates for raw materials, components, and capital goods required for domestic manufacturing.

AiMeD President Rajiv Nath stated: “A modest tariff correction will not burden patients or hospitals significantly, but it will send a strong signal to global manufacturers that India is serious about becoming a self-reliant hub for medical devices. We have waited long enough for localisation to happen organically—it is time for policy to provide the necessary push.”

The proposal arrives at a sensitive time for the Union Budget 2026–27, as the government balances the objectives of Make-in-India, affordability of care, and fiscal prudence. Industry observers note that any tariff increase will be closely watched by importers, hospitals, and patient advocacy groups, who have historically opposed duty hikes fearing cost escalation.

AiMeD has also reiterated its earlier demands for extension and enhancement of the PLI scheme for medical devices, faster regulatory approvals, and the creation of a dedicated Export Promotion Council for the sector to help Indian manufacturers compete globally.

The government is expected to consider these recommendations in the coming weeks as it finalises the budget framework. The outcome will play a decisive role in shaping the pace and direction of medical device localisation in India over the next 3–5 years.