INDIAN MEDICAL DEVICES INDUSTRY
INDIAN MEDICAL DEVICES INDUSTRY
The healthcare and medical device sectors have grown significantly in the last decade. There is a huge gap in the current demand and supply of medical devices in India and this provides a significant opportunity for manufacturing devices in India. At present, many medical device manufacturers (domestic and international) are chasing this massive under penetration of medical devices in India as a significant growth opportunity.
In India is among the top 20 markets for medical devices worldwide. India’s medical devices market stood at US$ 11 billion in 2020 and is expected to reach US$ 65 billion in 2024. The medical devices sector in India comprises large multinationals and small and midsized companies
The Government of India (GOI) has commenced various initiatives to
strengthen the medical devices sector, with emphasis on research and
development (R&D) and 100% FDI for medical devices to boost the
market. From April 2000 to March 2021, FDI inflow in the medical and
surgical appliances sector stood at US$ 2.19 billion. By 2025, the
Indian market for medical equipment is predicted to increase from
US$ 11 billion to US$ 50 billion. The Indian medical devices sector
is estimated to be worth US$ 10 billion in 2021. Between 2020 and
2025, diagnostic imaging is likely to expand at a CAGR of 13.5%.
India has a 75-80% import dependency on medical devices, with
exports at Rs. 14,802 crore in 2019 and is expected to increase at a
CAGR of 29.7% to reach Rs. 70,490 crore in 2025. To increase export
of medical devices in the country, the Indian Ministry of Health and
Family Welfare (MOHFW) and Central Drugs Standard Control
Organisation (CDSCO) implemented the following initiatives:
re-examination and implementation of Schedule MIII (a draft guidance
on good manufacturing practices and facility requirements), system
for export labelling, clinical evaluation and adverse reporting
clarification, state licensing authority to extend free sales
certificate validity from 2 years to 5 years to allow exports,
create a list of manufacturers with export licensing for easy access
by regulatory authorities worldwide.
The Medical Devices Virtual Expo 2021 will showcase Indian products
and enable direct interaction between Indian suppliers and
buyers/importers from participating countries. Also, 300 foreign
buyers from the healthcare sector are expected to participate in
this event. To further incentivise investments in manufacturing
medical devices, in May 2020, the government announced
incentivisation plans of at least Rs. 3,420 crore over a period of
five years, and these funds will be offered to manufacturers only if
they invest in set-ups to manufacture key medical devices.
Professor Michael Lerch of the University of Wollongong (UOW) has
been given a US$179,000 Australia-India Council grant to conduct
pre-clinical testing on a novel medical device for neurosurgery by
the Department of Foreign Affairs and Trade (DFAT).
To expand the primary healthcare Industry and clinical centers in
the country, in July 2021, the government of Uttar Pradesh announced
to introduce automatic medicine dispensing machine. The state health
department has been initiated to design an action plan and install
‘Health ATMs’ walk-in medical kiosks with combined medical devices
for fundamentals, basic laboratory testing, emergency offerings,
cardiology, neurology, pulmonary testing, gynaecology, etc.,
operated by a medical assistant in all 75 districts of Uttar
Pradesh.
In July 2021, Abbott announced that it has launched pea-sized,
life-saving device for babies with hole-in-the-heart malformations.
The company has launched the device in India with emphasis on
centres having an active neonatal intensive care unit (NICU).
In June 2021, AstraZeneca India signed a memorandum of
understanding with Docon Technologies, a Bengaluru-based health
start-up, to digitise 1,000 clinics across India by implementing
customised Electronic Medical Record (EMR) systems in clinics to
offer doctors access to complete patient history. In July 2021,
Blackfrog Technologies, a start-up backed by the Biotechnology
Industry Research Assistance Council (BIRAC), developed Emvólio, a
portable, battery-powered refrigeration device to provide efficient
and safe transportation of vaccines.
In June 2021, the National Anti-profiteering Authority’s (NAA)
directed tax officials to ensure rate cut on Goods and Services Tax
(GST) for COVID-19-related medical supplies to offer consumers tax
relief on supplies. In June 2021, Skanray Technologies filed its
draft red herring prospectus (DRHP) with SEBI for its initial public
offering (IPO) worth Rs. 400 crore. The IPO is expected to include
sale of secondary share, wherein its promoters and Ascent Capital
(an existing private equity investor) are expected to sell a part of
their stake.
By 2022, the Gautam Budh Nagar, Noida, is expected to have Northern
India’s first medical tools and system manufacturing park. The park
is likely to be developed in Sector 28 of the Yamuna Expressway
Industrial Development Authority (YEIDA) Space by the Yamuna
Expressway Authority. In March 2021, YEIDA is expected to introduce
a mission scheme worth Rs. 5,000 crore, of which Rs. 100 crore is
likely to be funded by the central authorities.
In February 2021, Punjab’s Industry and Commerce Minister Mr.
Sunder Sham Arora announced that a park for medical devices was
proposed in Rajpura, Punjab, across an area of 210 acres, with an
estimated project cost of Rs. 180 crore. In January 2021, Tamil Nadu
government proposed to build a medical devices park (spanning 350
acres) near Oragadam in Kancheepuram district. The proposed cost for
developing this project is Rs 430 crore. In March 2021, Transasia
Bio-Medical Ltd., a Mumbai-based in-vitro diagnostic company,
announced plans to invest Rs. 150 crore to set up a manufacturing
unit at the Medical Devices Park in Sultanpur, Telangana. The
company plans to manufacture state-of-the-art high-technology
analysers in the unit to address biochemistry, immunology,
hematology, molecular testing in addition to COVID-19, HIV, dengue,
and TB testing for domestic and export markets.
Japan-headquartered Omron Healthcare, which established its Indian
arm in 2010, is drawing growth plans for India that may include
setting up a manufacturing unit in India and expanding its retail
footprint. By the end of 2021, the company plans to have 10 retail
outlets in India and plans to create a centre in Warangal as part of
its expansion into Southern India, where it anticipates a potential
contribution of 40% of its sales in FY 2020. The company expects a
Rs. 220 crore (US$ 30 million) turnover in India during that
period.
New Delhi-based SS Innovations, promoted by renowned robotic
cardiothoracic surgeon Dr. Sudhir P Srivastava, will commercially
launch India's first and cheapest robot surgical system in the next
4-6 months. The company plans to manufacture 100 units in 2021 of
its new 'Mantra' multi-arm surgical robotics system, which was
indigenously developed over the last three years, and sell >1,000
units in the next five years.
In April 2021, Medtronic inaugurated a Medtronic Engineering and
Innovation Centre (MEIC) in Hyderabad to leverage India's large pool
of diverse and qualified talent to accelerate its innovative work in
the medical technology space in the country. In April 2021, ResMed
expanded ‘AirView for Ventilation’, a cloud-based remote monitoring
and management platform in India, which allows healthcare
professionals and physicians to leverage this digital respiratory
monitoring solution to remotely track patients and provide better
care.
In April 2021, Anthill Ventures announced a collaboration with Kanfit3D (an Israeli health tech company) to help the company (Kanfit3D) expand in India and produce custom-made medical implants and market access to healthcare providers in the country. The Government of India has recognised medical devices as a sunrise sector under the ‘Make in India’ campaign in 2014.
In July 2021, the government announced to build medical park in
Uttar Pradesh, which is expected to generate an estimated Rs. 500
crore business in the state. In June 2021, the Quality Council of
India (QCI) and the Association of Indian Manufacturers of Medical
Devices (AiMeD) launched the Indian Certification of Medical Devices
(ICMED) 13485 Plus scheme to undertake verification of the quality,
safety and efficacy of medical devices.
To boost domestic manufacturing of medical devices and attract huge
investments in India, the department of pharmaceuticals launched a
PLI scheme for domestic manufacturing of medical devices, with a
total outlay of funds worth Rs.3,420 crore for the period FY21-FY28.
On March 25, 2021, the Department of Pharmaceuticals (DoP) released
a revised notice on the Public Procurement Order (PPO),
incorporating 19 medical devices in the revised guidelines of the
PPO, which is expected to improve domestic medical devices
manufacturing (and strengthen ‘Make in India’) and reduce import
bills by Rs. 4,000 crore.
In order to expedite the clearance of medical devices such as
nebulisers, oxygen concentrators and oxygen cannisters in April
2021, the government made it easier to import critical medical
devices by easing the requirements for clearance under the Legal
Metrology Act (Packaging Rules 2011). The government also approved
applications for nine eligible projects that are expected to lead to
a total committed investment of ~Rs. 729.63 crore by the companies
(e.g., Siemens Healthcare Private Limited, Allengers Medical Systems
Limited (AMSL), Allengers OEM Private Limited (AOPL), Wipro GE
Healthcare Private Limited, Nipro India Corporation Private Limited,
Sahajanand Medical Technologies Private Limited, Innvolution
Healthcare Private Limited, Integris Health Private Limited) and
generate 2,304 jobs. In January 2020, the government set up a
National Medical Devices Promotion Council to promote local
manufacturing of high-end medical devices and attract investments in
the sector.
In India, medical device manufacturing is costly because it
requires high investments in scientific facilities. To combat this
cost, the Government of Andhra Pradesh is establishing the Andhra
Pradesh MedTech Zone (APMTZ), which will house all capital-intensive
scientific facilities, laboratories, etc., and will be leased to
manufacturers in Vishakhapatnam. This initiative will help decrease
the cost of good-quality products.
Policy makers in India will need to set out an action plan to
reduce the country’s dependency on medical devices/technology
imports. At present, NITI Aayog is reportedly drawing up a strategic
road map for medical devices similar to the incentive package that
gives sizable capital subsidies for the electronics business, which
helps boost local production of cell phones in the country.
Medical device companies should develop India as a manufacturing
hub for domestic and international markets, undertake India-based
innovation in combination with indigenous manufacturing, collaborate
across the Make in India and Innovate in India schemes, and produce
Low to Medium technology products to cater to the underpenetrated
domestic markets.
If you like the information. So tell us in comment section and
follow the page so that you can get the information of the posts
first.
Comments