Pre budget expectation, Ajay Pitre

The current estimated size of the Indian (Domestic) Orthopaedic Industry is 75-80 crores.The raw material components is estimated at 23-24 crores based on information  from trade circles. Some products such as Joint Replacements and Spinal Implants are serviced substantially by imports to the tune of 70% (Spine) and 95% (Joint Replacements) of the market.

In the segment comprising of Trauma (Fracture Fixation) implants the Indian Industry has about 65% market share, Due to the high input costs (on account of import duties loaded on relatively expensive raw materials), Indian Industry is disadvantaged at not being able to offer finished products using internationally certified raw materials as compared to imports that are available with internationally certified raw materials.
Recommendation:

This anomaly can be corrected by the following actions :

1.Waive completely the import duty on the import of this specialized implant grade material such as stainless steel, titanium alloys, high density polyethylene etc meeting the implantable grade material standard specified in ISO 5832 (Part 1 to 12) as well as corresponding IS: 5347; part 2, 1993 in order to enable Indian manufactures of Orthopaedic Implants to compete effectively and qualitatively in the global scenario.
 
2.Waive completely the Import duty on Specific forgings, castings, mouldings and other such semi finished components which form Raw material like inputs to manufacture specific orthopaedic implants. This is to enable Indian manufactures of Orthopaedic Implants to compete effectively and qualitatively in the global scenario.

3.Similarly import of capital goods and consumables required for the manufacture of these Orthopaedic implants should be exempted from all import duties, CVD etc. as finished goods are exempt from duty, CVD etc  Since, unlike the special raw materials and components, these Capital Goods can be used for manufacturering of some other engineering components, the duty waiver can be allowed on verification of ‘end use’. This can be done for example by by allowing this to only registered manufacturers who posess a Manufacturing License under the Medical Device Regulations of India. This is currently issued under the Drug and Cosmetic Act and Rules.

4.Exempt all local inputs from Excise Duty as finished goods are exempted from Excise Duty or CVD in manufacturing or import respectively.