AiMed Lauds AMTZ For Commencing Booking of PlotsPublish Date : Oct 05, 2016
AiMeD feels that there should be incentives for establishing medical devices manufacturing in India.
The Association of Indian Medical Device Industry (AiMeD) has applauded speedy construction of the Andhra Pradesh MedTech Zone (AMTZ) but feels that import duty rationalization is a must to attract investment in the Park.
In a press statement, welcoming the speedy opening up of plot-booking after the formal inauguration of the park sometime back, AiMed has called it an encouraging development but stated that investment to the park will be incentivised only if import duty on medical devices is rationalised. It may be noted that AiMeD was instrumental in visualising the park.
“It will be challenging to populate the park unless EXIM tariff structure is rationalised. Currently, we have nil import duty on most of the electronic medical devices. So, why will anyone invest or take the trouble of setting up manufacturing unit here?” questioned Mr Rajiv Nath, Forum Coordinator, AiMeD.
Mr Nath further pointed out that for items that India has signed under ITA 1 & 2 (Information Technology International Trade Agreements) where it is bound to have nil duty, alternative methods like differential CVD and Excise Duty are required, as is being done for establishing mobile industry. For items for which India has not signed up under ITA -3 the Dept of Revenue needs to apply peak duty of 10%, otherwise why not sign up ITA-3?
Meanwhile, Dr Jitendra Sharma, CEO, AMTZ, has announced the target of closing sale of 300 units in the 270 acres park by 31st December, 2016. “We have already received the first 2 bookings since opening the bookings on October 2, 2016, and the 1st booking was within 6 hours of launch “, he shared.