SBI Report Calls For Reforms To Strengthen India's Medical Devices Market

(MENAFN- KNN India) New Delhi, Jan 27 (KNN) A new report from the State Bank of India (SBI) has outlined crucial reforms needed to strengthen India's medical devices market, including an extension of the Production Linked Incentive (PLI) scheme and implementation of a uniform GST rate.

The recommendations come as India's domestic medical devices market, valued at approximately Rs 75,000 crore in FY24, is projected to grow at a compound annual growth rate of 12-15 percent over the next five years.

The report emphasises the importance of maintaining consistent diagnostic services to improve healthcare quality and reduce out-of-pocket expenditure (OOPE) for patients.

According to SBI, ensuring the continuous availability of essential diagnostic services appropriate to different levels of care is fundamental to enhancing overall patient experience and healthcare delivery.

The banking institution advocates for extending the PLI scheme to enable manufacturers to increase production capacity, decrease import dependence, and advance India's 'Make in India' initiative.

The report also recommends tax incentives for research and development activities and Global Capability Centres to promote innovation and create employment opportunities.

Additionally, it proposes streamlining the current GST structure, which ranges from 5 to 18 percent, to a uniform rate of either 5 or 12 percent to simplify compliance and improve operational efficiency in the sector.

While India's healthcare spending is set to reach 2.5 percent of GDP by 2025 under the National Health Policy 2017, up from 1.95 percent in FY24, the SBI report suggests a more ambitious target of 5 percent to address the healthcare needs of India's growing and aging population.

The report also recommends implementing a 35 percent GST slab on tobacco and sugar products, with proceeds allocated to strengthen public health programs and combat the rising incidence of non-communicable diseases such as diabetes, hypertension, obesity, and cancer.

(KNN Bureau)

MENAFN27012025000155011030ID1109134375