India to Expedite Local Manufacturing of Key Medical Devices
India plans to boost local production of high-value medical devices, reducing import reliance.
Government's Initiative to Boost Local Production
The Indian government is taking strategic steps to enhance the local manufacturing of high-value medical devices. This move aims to decrease dependency on expensive imports, which have been a significant part of the country's healthcare sector. The Centre is in the process of reviewing existing data and consulting with industry stakeholders to identify 8-10 priority medical devices for which policy support would be most beneficial.
Targeted Devices for Indigenous Production
Among the medical devices under consideration for local production acceleration are MRI systems, pacemakers, continuous glucose monitoring devices, advanced ultrasound equipment, and high-end diagnostic analyzers. These devices are crucial for modern medical practices and currently constitute a large portion of India's import bill. The government, through the Department for Promotion of Industry and Internal Trade (DPIIT) and the Department of Pharmaceuticals (DoP), is working closely with industry leaders to pinpoint these key categories.
Industry Collaboration and Feedback
Himanshu Baid, managing director of Poly Medicure, confirmed active discussions with government bodies, stating that new schemes are anticipated to support this initiative. Rajiv Nath, forum coordinator of the Association of Indian Medical Device Industry (AiMeD), emphasized the timely nature of this move, citing a 17% increase in medical device imports last year, totaling ₹89,000 crore.
Proposed Measures to Support Local Manufacturing
The government is considering a range of measures to bolster local production capabilities. These include revising tariffs, promoting component indigenization, offering public procurement incentives, supporting research and development, and providing targeted subsidies. Specific components such as MRI parts, continuous glucose monitoring systems, and high-end ultrasound equipment are among the focus areas.
Economic Impact and Future Prospects
India currently imports about 6,000 medical devices across 160 eight-digit Harmonized System (HS) codes. A significant portion of these imports, approximately 85%, stems from just 40 HS codes. The top 19 products alone account for nearly 30% of total imports. To counter this, industry leaders anticipate an extension of the existing production-linked incentive (PLI) scheme or potentially a new PLI 2.0 program tailored for the medtech sector.
Conclusion
The government's proactive stance on enhancing local manufacturing of medical devices is expected to not only reduce import reliance but also foster innovation and self-reliance in the healthcare sector. By focusing on high-value medical devices, India aims to strengthen its position in the global medtech market, ultimately benefiting the healthcare ecosystem and the economy at large.