"The association does not need NPPA's or government's permission to curb inflated margins in suo motu control. "Industry players say a government order would help to effectively implement the price curbs. "Government price control ultimately smothers the industry, making it unattractive and goes against ease of doing business . Ai-MeD wrote to DoP in February asking the department to coordinate voluntary price caps of medical devices and implement a 1% excise cess on device MRPs to discourage higher prices.The letter suggested MRPs of medical devices be capped at four times their import cost or ex-factory price. About 70-75% of the demand in this sector is met through imports of products by global companies, the report stated.

Source: Economic Times September 01, 2017 18:56 UTC