To provide impetus to domestic medical devices sector, the government has increased import duty on certain specified equipment to 7.5% from 5% earlier.

"Rate of basic customs duty on certain specified medical device increased from 5% to 7.5%," the Finance Ministry said in a statement. Simultaneously, the exemption from additional customs duty on these medical devices has also been withdrawn, and they will now attract 4% SAD.

"Further, to give fillip to domestic manufacturing, basic customs duty is being reduced to 2.5% along with full exemption from SAD on raw materials, parts and accessories for manufacture of medical devices (falling under headings 9018 to 9022)," the statement added.

The concessional basic customs duty on hospital equipment for use in hospitals run by government or registered societies, and certain assistive devices, rehabilitation aids and other goods for disabled will however continue.

In line with its 'Make in India' campaign, the government had constituted a Task Force to examine various issues concerning the domestic Medical Devices Sector.

The said Task Force had made certain recommendations regarding rationalisation of customs duty structure for the sector, so as to promote domestic manufacturing of medical devices.