Govt removes duty anomalies to boost medical devices mfg

The government has removed anomalies in the duty structure to boost manufacturing of medical devices, Chemicals and Fertilisers Minister Ananth Kumar said

on Saturday.He also announced setting up of a pharma-cum-medtech zone near Bangalore, while noting that a proposal to create a separate pharma ministry is under active consideration of the PMO.

Further, the minister assured the industry a transparent and predictable drug price regime and called upon the companies to provide quality drugs at affordable rates to all section of the society.

"I would like to thank Prime Minister and Finance Minister for correction of inverted duty structure to give level playing field to medical devices sector. It is a big thing. It has already been done," Kumar said addressing the three-day 'India Pharma 2017' event organised by the central government along with industry body Ficci here.

An inverted duty structure impacts the domestic industry adversely as inputs and raw materials are taxed at a higher rate than import duty on finished products.

The medical industry had been demanding removal of duty anomalies for many years.

That apart, Kumar said that the government has launched e-portal for registration of pharma companies.

Stating that India is ready for major transformation, the Minister said, "We want to make India pharmacy of the world.

Our market size is $32 billion. We are going to be a $55 billion industry by 2020." The pharma sector has huge potential and there is a greater need to create a separate pharma ministry, he said.

"The pharma department was established in 1960 in the Defence Ministry. Later, it was shifted to petroleum ministry and now it is part of the Fertiliser, Chemicals and Pharmaceuticals Ministry. From here, we will become full-fledged ministry," he said.

On regulation of drugs and their prices, the Minister said, "...I...assure there will be transparency and fair play.

...We have not changed the goal post so far."

The government will ensure transparent and predicable drug price regime and asked companies to focus on providing quality drugs at affordable rates, he said.

Union Ministers Nirmal Sitharaman and Sadananda Gowda and Karnataka Chief Minister Siddaramaiah, State Industry Ministry R V Deshpande and Medical Education Minister Sharan Prakash Rudrappa were among those present attending the event.

Over 250 exhibitors, buyers from 15 countries, and international regulators from six nations are participating in the event.

Speaking at the event, Commerce Minister Nirmala Sitharaman said the government has included medical devices sector as one of the priority 25 sectors under 'Make In India' programme.