Ahead of the Union Budget FY27, the Medical Technology Association of India (MTaI) has urged the government to rationalise the cumulative tax burden on essential medical devices, which currently touches nearly 30 per cent in certain categories due to Basic Customs Duty, health cess, surcharge and GST. The association highlighted that this is particularly critical for segments where domestic manufacturing capacity is still inadequate or non-existent.
MTaI noted that high taxes significantly drive up the cost of life-saving medical devices used in surgeries, diagnostics and the management of non-communicable diseases, often pushing households into financial distress. At a time when global supply-chain disruptions have raised input costs, the association stressed that targeted duty relief should be viewed not as a fiscal concession but as a necessary public health measure to maintain affordability.
According to MTaI Chairman Pavan Choudhary, harmonising customs duties and GST on medical technology with other priority sectors would help widen access to healthcare, improve patient outcomes and strengthen India’s MedTech ecosystem by making it more competitive and resilient globally.