Revised custom duty on x-ray components unlikely to lower imaging cost; move aimed to boost domestic manufacturing

NEW DELHI: The lowering of custom duty on x-ray tube and flat panel detectors, key components of a digital x-ray machine , is unlikely to reduce the cost of imaging.

Industry sources have told TOI that the move is aimed at spurring domestic manufacturing of the machine which is used extensively in hospital settings to detect bone fractures, pneumonia and dental problems among others and, thus, reduce the cost of x-ray in the long run.

“These revised rates are expected to positively impact the x-ray machine industry by enhancing component availability at lower costs. This change is anticipated to boost the domestic medical device sector , contribute to component availability at lower costs and reduced healthcare costs , making advanced medical imaging more accessible and affordable,” said a government official.

Currently, most of the digital x-ray machines are imported as a whole or in parts and then assembled in the country.

Government sources said a Phased Manufacturing Programme (PMP) was notified by the department of pharmaceuticals on Jan 22, 2021, to promote domestic manufacturing of medical x-ray machines and specified sub-assemblies /parts / sub-parts whereby tariff changes at an increasing rate were proposed in a phased manner.

However, a source said, the industry represented before the department of pharmaceuticals that manufacturing capacity for x-ray tubes and flat panel detectors is yet to develop in the country and requested for revision in the PMP schedule relating to these items.

“In this regard, after careful examination, it was found that it may take at least two years before sufficient domestic capacity is established for x-ray tubes and flat panel detectors to meet the domestic requirement. Thereafter, the department of pharmaceuticals requested the revenue department for revised rates which has been done now."

“Currently, digital x-ray machines being imported from the US and China cost anywhere between Rs 18 lakh to over a crore. If the domestic manufacturing is successful, the same machines can be manufactured at much lesser cost which will eventually lead to reduction of imaging using this device. Also, it may become more feasible to ensure wider availability of x-ray machines, including at the primary health centres spread across the country,” Dr Harsh Mahajan, chairman and founder of Mahajan Imaging, who is also the chairman of FICCI ’s health services committee said.

Ashutosh Raghuvanshi , MD and CEO of Fortis healthcare, said the government's move to revise custom duty on key components of x-ray machines will foster local manufacturing. However, he added, some long standing healthcare sector demands remain unaddressed in the current budget. “These include increasing the expenditure on healthcare to 2.5% of the GDP,” Raghuvanshi said.