While cautioning about the hospital supply crisis, the AiMeD has requested financial and logistical relief from the central government, citing the rise in raw material costs and the Strait of Hormuz blockade, which is squeezing margins.
In letters addressed to Commerce Minister Piyush Goyal and Revenue Secretary Arvind Shrivastava, the Association of Indian Medical Device Industry urged the government to fast-track Goods and Services Tax (GST) refunds and curb opportunistic freight hikes. The move aims to protect over half a million jobs and safeguard domestic manufacturers from a worsening global crisis.
In its March 23 letters, the Association of Indian Medical Device Industry stated that the prolonged nature of current disruptions could lead to production slowdowns and leave the industry vulnerable to opportunistic pricing by dominant raw material suppliers.
AiMeD sought the government to complete its promise to refund excess GST in 7 days. Till now, manufacturers are fighting with the inverted duty structure, paying 18% GST on inputs while levying merely 5% on the finished devices, which leads to “large accumulations of unutilized input tax credit and increased bank borrowings.” Pending refunds “remain unsustainable amid rising input costs,” it said.
The sector has asked the government to direct logistic provider Concor to prevent “opportunistic increases” in inland freight charges, which further erode cash flows that are already facing issues from global shipping delays and higher logistics costs. Beyond that, it wishes Adani Gas to shift from a daily to a weekly supply cap to ensure continuous plant operations.
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The Association of Indian Medical Device Industry also cautioned against reducing import duties on finished medical devices, stating that such a move would significantly disadvantage domestic manufacturers already under pressure.
Iran War Surges Input Costs
The industry has asked for a targeted, three-month customs rebate of 2.5% on raw material imports and 5% on component imports to restore stability at a time when prices of plastics and energy inputs have risen.
AiMeD cited that this calibrated measure shall support “stabilise domestic production, maintain affordability, and protect India’s export commitments to the US, EU, and other markets”.
With the start of the Iran war, the cost of critical plastics has surged to nearly 50%, packaging and diesel-based self-generated power costs have jumped by more than 20%, and PNG gas, which is important for process heating, has nearly doubled.
Even after these pressures, no shortages have been reported by the industry.
“As of now, there are no shortages of syringes or other medical disposables… However, we are seeing substantial price increases, longer lead times, and highly elevated freight costs,” Rajiv Nath, forum coordinator at AiMeD, said.
To stay afloat, many manufacturers have already increased prices by 10–20 per cent.
The rising anxiety in India stems from the country’s dependence on imported medical-grade polymers. This vulnerability puts India at risk of disruptions, particularly through the Hormuz chokepoint, which is crucial for global petrochemical flows.
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The Association of Indian Medical Device Industry stated that any prolonged disruption would directly threaten manufacturing continuity and the stability of hospital supplies.
According to the Economic Survey, the Indian medical devices industry is valued at approximately $14-16 billion in 2025 and is projected to reach $50 billion by 2030. Currently, India relies heavily on imports for high-end technology, with an import dependency of 80-85 per cent. In fiscal year 2025, India exported about $4.1 billion worth of medical devices to over 187 countries, primarily focusing on consumables and diagnostics.
