Manufacturing Medical Devices In India
Himanshu Baid - Managing
Poly Medicure Ltd., Co- Chairman of CII Medical
Technology Group and Co – Chairman of PHD Chamber,
Abstract of Presentation made by Mr. Himanshu Baid
during the 12th National Conference and Technology
Exhibition on Indian Medical Devices & Plastic
Disposables/Implants Industry 2015, Ahmedabad.
Challenges faced by the Industry includes a lack of
clarity in Regulations, access to market, the issue
of price control as well as very low investment in
Government of India has recognized Medical Device
Sector as Sunrise Sector as part of the “Make In
India” Program launched by Hon. Prime Minister Mr.
FDI in Medical Devices Sector will bring new
opportunities for this sector.
National Health Policy’2015, the new Health Policy
has come after 13 years.
Government is already looking at the anomaly of
inverted duty structure.
Government has already set up a taskforce in
November’2014, to identify the issues related to
promotion of domestic production of high end medical
devices and pharma manufacturing equipments.
Medical device manufacturing hubs and dedicated
medical device testing labs are being set up across
Single window clearances will be available to
medical device companies which will fuel the growth
in investment in medical device sector.
India Policy”, a very important move for medical
device sector to encourage health institutions to
procure Indian made products.
is a great opportunity for the medical devices and
technology sector to innovate across the value
chain, to serve Indian and foreign consumers, and
unlock the value of Indian market.
India’s traditional strength is manufacturing and it
can deliver tremendous value if it meets with
regulatory and operational challenges.
Mr. Himanshu Baid started
his presentation giving an overview on the Indian Medical
mentioned that, as per, “BCG Report”, the medical device
sector in India is currently valued around 6.3 Billion
Dollars against the global market of 280 billion dollars -
just 2 to 2.5 percent market of the Global Medical Device
Market, signifying a lot of opportunity today in India.
Growing around 10-12% annually and by looking at the
current growth rate, this sector is likely to reach around
20 Billion Dollars by 2025.
mentioned about the challenges faced by the Industry
including a lack of clarity in Regulations, access to
market, the issue of price control as well as very low
investment in the sector.
mentioned that with less than 1% of GDP, the Government
doesn’t spend enough on healthcare sector today as
compared to neighbouring countries, like Bangladesh, Sri
Lanka and Nepal. They have better GDP spent on healthcare
compared to India. From the current budget allocation, it
appears that healthcare is still not a priority. Mr. Baid
mentioned that there is lack of innovation in the country.
Still 80% of the population is not covered under any
also mentioned that there are lot of changes that are
happening. First of all, the Government of India has
recognized Medical Device Sector as a Sunrise Sector as
part of the “Make In India” Program launched by Hon. Prime
Minister Mr. Narendra Modi.
saw the need of propelling the sector because 70- 80% of
the devices are still imported to the country.
Government wants more investment to come into the sector
and hence, recently, Government of India has notified 100%
FDI in Medical Devices Sector. This is a very important
step according to Mr. Himanshu Baid. This policy will
bring new opportunities for the medical device sector.
There will be more investment from private equity
investors and the strategic investors from abroad. It will
encourage more collaborations, acquisitions and joint
ventures and develop new technologies. It will make
industry attractive through innovations. Capital will flow
seamlessly into the country now. Maximum benefit will go
to small start up company, SME and MSME sectors. FDI will
bring more specific innovations to products for domestic
demands as needed for Indian patients. Also, the Non
Compete Clause has been done away with.
important change which has come is draft National Health
Policy’2015. Our last Health Policy was made in 2002 and
after 13 years the new Health Policy has come, as put on
the website of Ministry of Health and Family Welfare. The
most significant is that Government is now recognizing the
need of investing more money on Healthcare. Like in
education, government might bring a Healthcare Share to
promote healthcare. The industry might see a fourfold
growth in next five years.
inverted duty structure and manufacturing, Mr. Baid
mentioned, today most of the raw materials are expensive
than importing finished products into the country. Under
the “Make In India” national agenda, government is already
looking at this anomaly of inverted duty structure through
this national health policy. Of course, the key objective
is to bring in at affordable prices for life saving
technologies. The most important fundamental question here
under the policy is to pass a Health Right Bill making
health a fundamental right, in the way it was done for
education. Today as like education has become a
fundamental right, so, can Government take an initiative
and make health a fundamental right for everyone.
Countries like Brazil, Thailand and even China is moving
in that direction where there is a major law, and this is
the big contributing growth to healthcare industry as
such. Also, in turn it propels growth in medical
technology industry. China spends more than 40 Billion
dollars on Healthcare annually on public health, so with
the same population in India, similar population level, if
we look at that kind of number which is there, and to
cover and balance 80% of the population which has not
covered under any healthcare program, this is the kind of
investment which is needed today in the healthcare
industry. And also, definitely this will be a huge trigger
in the growth of medical device industry also.